Thread regarding Wells Fargo & Co. layoffs

The best solution for the company is offshoring (100% is ideal, but 75% is acceptable). It saves the company a lot of unnecessary cost and the customers won't have to pay expensive fees. It's a win-win situation. Walmart, Amazon and Apple have succeeded with this model. Another cost saving option for the future is to use AI for lower level jobs.

Question to the pro-union armchair economists: By making labor 30% more expensive, do you think the car companies will consume more labor or less labor? Answer = Less.

Other things equal, this union deal will result in layoffs and a search for cheaper substitutes. That includes more automation, transferring work to right-to-work states, and greater reliance on foreign labor, like in Mexico. Congratulations!

Awesome. So, now we'll pay about 30% more for new cars over the next four years.

I'm always amazed at the lack of knowledge on some of these posts. Labor costs are only 4-5% of the cost of a new vehicle so the price wont go up 30%. GM already said prices wouldn't likely go up at all in the next couple of years due to this contract.

Yes !

@1oco - This would be a fun discussion over beers. I'm going to stick with my simple analysis (Occam's razor). Do you believe that Ford and GM would have agreed to 30% cost increases if they didn't believe they could pass the costs on to the consumers?

@uyz+1ple2rEg

You have just described the basics of "microeconomics". You also need to consider "macroeconomics".

You have to remember that we live in an imperfect economic world that is being influenced by many bad things like incompetent government, global conflicts, business crimes, etc. Things are not as simple as you would think.

@uyz Shareholders don't own sh-t. Go look up who gets paid when a company is liquidated and who usually gets nothing.

@uyz - I described DEMAND for a good. You described SUPPLY of a good. Related, but different.

*No, the market determines pricing.
Ford and GM can try to charge whatever they want for a vehicle, but they'll never get it if people aren't paying it.*

Do you understand basic economics? Businesses don’t just arbitrarily pick a price and stick it on a product because their peers do. They’re there to make money. If they can’t make money… they close or sell off the business.

Here’s a very basic overview of what determines the cost of consumer goods:

Cost of raw materials
Cost of labor
Cost of overhead, including real estate, ops, tax obligations (Btw there’s no such think as a business tax It eventually gets passed down to the consumer- it’s not a charity)

The business sets pricing by taking into account all of those factors, and what the market will bear. But not under the cost to manufacturer the product.

Remember, it’s all about maximizing profits for shareholders (the owners).

@jgv - Normally, I would agree with you. I think the last three years have shown that the demand for new cars is inelastic. Prices shot up due to supply chain issues, chip shortage, etc. People kept buying cars, and the auto manufacturers saw record profits. Most people (outside of NYC) need cars. I predict that car prices will rise again with higher labor costs and that consumers will still be buying new cars. To afford the higher priced cars, consumers will reduce discretionary spending.

A union for a bank? Wake up, it will never ever happen in the next 100 years.

@hgv

No, the market determines pricing.

Ford and GM can try to charge whatever they want for a vehicle, but they'll never get it if people aren't paying it.

UAW raise or not, the automakers (like any industry) will always charge as much as they can get. It's what some people call 'greed'.

Unions help employees get some benefit from that 'greed' in a way that the employer never would on their own.

I’m running for union president.

Why do Meta, Microsoft, Google and everyone else not have a union?

They all outsource, hire H1B and OPT visa to replace us.

Awesome. So, now we'll pay about 30% more for new cars over the next four years.

@odq+1ple2rEg

Teacher Unions are practically the same. It's almost impossible for a teacher to be fired unless the booze on the job or di---e the kids.

You fail to realize that a huge portion of employees here are not minimum wage and don't have any friends that work in bowling alleys.

Yes. You got my vote.

Teachers, police etc are municipal. They're not private sector. Apples to oranges. Totally different employment landscape.

The recent UAW contract is for the private sector, and they did very well for themselves.

It's almost surreal to see so many people trying so hard to keep themselves down by staying loyal to their older brother, Mitch.

Mitch never made it very far. He kept hoping he could give his 2 weeks notice down at the bowling alley, but that never happened. Dam unions!

Mitch is real proud of you anti-union folks though. Real proud. He's glad to see you also not getting a pension, and having worse job security and benefits.

Unions have a together we stand divided we fall mindset. Sounds great in theory, but it requires the union covering for the poor performing employees. Nope. Not going to be associated with anyone who stinks. THIS is what gives teachers and police unions a bad rep. They cover for the terrible employees who should be cut. Unions have lost credibility if they refuse to toss out bad employees.

Hence, unions are bad.

@kat+1ple2rEg

I work in a call center. I do shifts and don’t put one second of critical thought into my job. I don’t spend a second thinking about work outside of work, and have intermittent FMLA which allows me to call out any time I don’t feel like going in.

I deserve a living wage. 30 bucks an hour. Also all my fmla hours should be paid. And I want it NOW!!!!

Give me my trophy.

Or I can keep doing what I'm doing and make much more money than any union could "provide."

Unions are for lazy people.

@kat likes not having job security, not having a pension, and having his benefits erode literally every year.

All in service to his older brother "Mitch" who told him decades ago that unions are 'bad'.

Survey. Where do you work? Is it the mailroom or call center?

We are not unionizing. Stfu

As long as you pay my union "dues" and guarantee my pay scale stays the same.

Look at @mge+1ple2rEg not understanding how a Union actually works and having absolutely no concept of the fungibility of money. It's comical that you are so blinded by the promises from any guarantor (to include Unions) that you can't see when and where they have failed to deliver.

• Churros

“createling” lmao

@mge+1ple2rEg likes working half-assed for the same pay as someone who works hard, likes createling another layer of bureaucracy that takes more of your money, and threatens your job if you don't have the "correct" beliefs as it turns into a machine for politics.

All because their daddy Marx told him that he should be paid more for less work.

It's all based on envy and laziness.

@ptx likes not having job security, not having a pension, and having his benefits erode literally every year.

All in service to his older brother "Mitch" who told him decades ago that unions are 'bad'.

Nope, unions can go jump in a lake.

Deaths of despair.

From a previous post (FYI)

https://betterbanks.org/wfwu

Wells Fargo Workers United
We are Wells Fargo employees forming a union to improve our working conditions; 
making a better Wells Fargo for workers & customers.

Proper Staffing
We need adequate staffing levels to reduce stress levels, enable humane workloads and set attainable performance metrics.

Better Pay
We want a fair raise for ALL employees commensurate with the 30% increase to the starting minimum wage.

Work Life Balance
We demand safe and flexible work arrangements along with time-off benefits that recognize all of our needs, duties and responsibilities.  

Respect
Respect our right to organize an independent voice at work free from fear of retaliation or harassment