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#40255 - 12/22/11 04:06 PM Germany builds twice as many cars as the US
Lumberjack Offline
Carpal Tunnel

Registered: 07/08/08
Posts: 3486
While paying their workers twice as much.

From Forbes

In 2010, Germany produced more than 5.5 million automobiles; the U.S produced 2.7 million. At the same time, the average auto worker in Germany made $67.14 per hour in salary in benefits; the average one in the U.S. made $33.77 per hour. Yet Germany’s big three car companies—BMW, Daimler (Mercedes-Benz), and Volkswagen—are very profitable.

How can that be? The question is explored in a new article from Remapping Debate, a public policy e-journal. Its author, Kevin C. Brown, writes that “the salient difference is that, in Germany, the automakers operate within an environment that precludes a race to the bottom; in the U.S., they operate within an environment that encourages such a race.”

There are “two overlapping sets of institutions” in Germany that guarantee high wages and good working conditions for autoworkers. The first is IG Metall, the country’s equivalent of the United Automobile Workers. Virtually all Germany’s car workers are members, and though they have the right to strike, they “hardly use it, because there is an elaborate system of conflict resolution that regularly is used to come to some sort of compromise that is acceptable to all parties,” according to Horst Mund, an IG Metall executive. The second institution is the German constitution, which allows for “works councils” in every factory, where management and employees work together on matters like shop floor conditions and work life. Mund says this guarantees cooperation, “where you don’t always wear your management pin or your union pin.”

Mund points out that this goes against all mainstream wisdom of the neo-liberals. We have strong unions, we have strong social security systems, we have high wages. So, if I believed what the neo-liberals are arguing, we would have to be bankrupt, but apparently this is not the case. Despite high wages . . . despite our possibility to influence companies, the economy is working well in Germany.

As Michael Maibach, president and chief executive of the European American Business Council, puts it, union-management relations in the U.S. are “adversarial,” whereas in Germany they’re “collaborative.”
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It is by having hands that man is the most intelligent of animals - Anaxagoras

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#40258 - 12/22/11 05:36 PM Re: Germany builds twice as many cars as the US [Re: Lumberjack]
5th Offline
old hand

Registered: 12/01/09
Posts: 735
Loc: Aberdeen
Forbes is also compairing two different philosophies. What works in a tribe/clan based culture won't work in our American environment. Too many clans competing.

Second. German/Saxon cars are easier to acquire in Europe.

Third. American Cars/truck out sell European cars in the Americas. Ever see a Chilean driving a BMW? Not many. But you will see more German cars in Russia then American made cars.
_________________________
"The careful student of history will discover that Christianity has been of very little value in
advancing civilization, but has done a great deal toward retarding it."
..........Matilda Joslyn Gage, "Woman, Church and State", 1893

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#40259 - 12/22/11 05:38 PM Re: Germany builds twice as many cars as the US [Re: Lumberjack]
ikayak Offline
Carpal Tunnel

Registered: 04/08/09
Posts: 3685

You are quoting Forbes now?
Your socialist buddies would disagree:

http://www.socialistworld.net/mob/doc/4272
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"The true engine of economic growth will always be companies like Solyndra"...B.O.

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