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    Agree

    Quote:
    The Groom said:
    Quote:
    Ente said:
    I have yet to see one single example of how a strike has actually improved the economy.


    The 1984 strike actually saved the British economy...
    ... it killed the unions.



    Combination of Red Robbo (Sir Michael Edwardes), Rupert Murdoch, and Mad Maggie stopped the decline of Britain.

    I'm not anti-union per se, but having the brains to see the long-term picture and how to play it to your mutual advantage would seem the smart way to go...It would seem the German unions are trying to commit suicide.

    Re: Strike

    Quote:
    Porsche-Jeck said:
    Quote:
    Jim48 said:
    By making itself more profitable, Porsche was hoping to ensure its longer-term survival as an independent company, something that would provide a long-term benefit to all the Porsche workers, and continue to provide customers with some of the finest cars in the world. Now the union members decide to go goofy, attempt to destroy that profitability, and incidentally, their own prospects for long-term employment at high-paying jobs.

    If the union succeeds in bilking the company, it will only be to their members' own long-term harm. As a professional economist, I am constantly amazed at the ignorance of union leaders and their members when it comes to doing things that hurt them in the long run.

    Jim



    Jim, you're absolutely right, but unfortunately German unions and economic logic are located at two different planets.

    @Texas911: Porsche's profits are not the trigger for the asked increase in wages (ask 5%), the German union and labour right system is based on a very stupid and inflexible idea: wages are negotiated based on regions/industry sectors, not individual companies. That means a small business with low profit margins has to pay the same wages as Porsche. Those small and midsized companies (still the backbone of German economy, employing some 75% of the total German workforce) are the real loosers (distributionwise they are depending on the weak local market, no chance to transfer production into low cost countries, no chance to flee the tax system). That's the reason, why the blue chips still are doing quite OK (with Germany still being the world's leader in exports) while those depending on the national market (both companies and employees) are in deep sh..t.

    Unless Germany won't allow for real competition in the labour market (meaning to abolish the crazy "one region-one salary" and "one industry sector-one salary" system) and restructuring the social security system, we won't see any recovery. Reminds me of driving a Porsche at high speed heading towards a wall without operating the brakes (who would do that unless he wants to commit suicide ?).

    I guess for RC's business (distributing drugs) it's even worse, as the government tries to conserve the ineffective socialist health insurance system by directly interfering into pricing.

    Back to Porsche: the company easily could compensate a mild wage increase by abolishing the voluntary paid annual bonus (3k Euro per employee), but as long as Porsche is member of the industry federation which negotiates wages with the unions at a regional/industry sector level there is no legal room for an individual solution. The irony is that no company is legally forced to be part of the system (they are allowed to terminate the membership), but then they would be forced to negotiate wages with their own employees (or delegates of the Porsche workforce) and especially very profitable companies like Porsche would fear that the employees would ask for an even bigger wages increase. And therefore not only the unions are part of the problem, but also all the CEO's who don't have the balls to leave the system (kind of hypocritical to ask for more flexibility in press interviews but voluntarily remaining part of the old inflexible federation system at the same time).

    Sorry for the long post, but I thought those Rennteamers not familiar with the German system might be interested in better understanding why an evolutionary restrucuring of the system does not work - we just have to get rid of it and implement something totally new (oh, well actually not that new - just adopt some of the good elements of the anglo-american economic sytem), but people still like to believe those politicians promising to conserve the old system with some minor changes. It's no coincidence that the now free countries of the former eastern block have not opted for the German system, but went for the anglo-american system.

    Now I hope that my pick-up scheduled for the second half of March won't be postponed and that I don't have to leave the factory in my new baby passing strike pickets holding big red flags.....not good for my blood pressure at all



    Porsche-Jeck,

    Thanks for the info on German laws regarding wages for regions/industries. It sounds like something left over from the age of the craft guilds, although some would say that such laws provide a living wage or a family wage, meaning a wage that can support a family.

    I can see how it might drive the middle-sized German firms - which I think are called the Mittlestand (my spelling could easily be wrong), out of business. This could be especially true for those firms supplying parts to Porsche, Mercedes, and BMW.

    In any case, I hope that any stirke is very short. I was lucky to take delivery of my 911S on Feb. 20. What a car!!!! I will be able to hear groans from around the world from those whose delivery is delayed by any strike.

    Jim

    Re: Strike

    Oh well, I was schedule for a March build.

    Has employees at Porsche honored the strike?

    Regards,
    Deanski

    Re: Strike

    Talk about strike. It snowed 3 inches ,if not more here, today in the Rheinland-Pfalz (Eifel Area) and the roads weren't plowed and traffic was a wreck every where all thanks to the road crews being on strike!! I hope this does get resolved as my production is scheduled for Week 16 (April 15-21)!!!

    Re: Strike

    Quote:
    Jim48 said:
    It sounds like something left over from the age of the craft guilds

    I can see how it might drive the middle-sized German firms - which I think are called the Mittlestand (my spelling could easily be wrong), out of business. Jim



    Well said

    Back to current news: Yesterday there has been a first round of warning strikes at Porsche's Zuffenhausen factory. Appr. 4,000 workers interrupted work for 2 hrs.

    Next negotiation round is scheduled for 14/17 March.

    Re: Strike

    Any updates to the strike today?

    Deanski

    Re: Strike

    Quote:
    Porsche-Jeck said:
    Quote:
    Jim48 said:
    It sounds like something left over from the age of the craft guilds

    I can see how it might drive the middle-sized German firms - which I think are called the Mittlestand (my spelling could easily be wrong), out of business. Jim



    Well said

    Back to current news: Yesterday there has been a first round of warning strikes at Porsche's Zuffenhausen factory. Appr. 4,000 workers interrupted work for 2 hrs.

    Next negotiation round is scheduled for 14/17 March.



    Porsche-Jeck,

    Thanks for the update! Please continue to keep us "waiters" posted!


    Re: Strike

    UPDATE:
    IG Metall Warns of `Massive' Strikes Unless Wage Demand Is Met
    March 14 (Bloomberg) -- Germany's IG Metall union, the world's biggest, threatened to stage ``massive'' warning strikes in the southern state of Baden-Wuerttemberg, home to companies including DaimlerChrysler AG, if employers fails to address union wage demands by the end of March.

    Today's second round of wage talks, affecting 800,000 workers in the region that last year posted the lowest jobless rate of Germany's 16 states, finished with no result, the union said in an e-mailed statement. A third set of talks will occur March 27, the day before a four-week peace period barring full- day strike action expires.

    ``Without a pay offer, there's no basis for constructive talks,'' chief union negotiator Joerg Hofmann was quoted in the statement as saying, while accusing the employers of ``delaying tactics.'' The union may stage ``massive warning strikes'' from March 29 if employers withhold a pay offer at the next meeting.

    IG Metall is demanding a bigger slice of employers' profits, which have been boosted by more than 50,000 job cuts and a surge in exports over the past three years. Employers counter that wage inflation jeopardizes a domestic economy that's still recovering from five years of stagnation.

    More than 71,000 workers have participated across Baden- Wuerttemberg in disruptions that IG Metall has staged since March 1 at companies including DaimlerChrysler and Robert Bosch GmbH. Seeking to prevent an excessive pay rise from further swelling Germany's labor costs, already among the world's highest, the Gesamtmetall employers' federation has said a raise of 1.2 percent, a quarter of IG Metall's demand, may be acceptable.

    At about 27.60 euros ($33) per hour, wage costs in western Germany were the second-highest in the world after Denmark in 2004, the last year for which figures are available, according to the Cologne-based IW institute.

    IG Metall has about 500,000 members in Baden-Wuerttemberg, where wage agreements are often seen as setting the agenda for the rest of the country. The union's 5 percent pay demand affects a nationwide 3.4 million workers whose pay contracts ran out on Feb. 28.

    2nd talks went without positive results. Now, I worry!

     
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