Wednesday, October 31, 2007

Volume 40 - Business Double-Speak!

TV Station 21 WFMJ News Now

Broadcast at 11:00 p.m. news 10-31-07, quotation is taken from their website

"Amweld Workers Get Bad News by Phone

Amweld in Niles is closing its doors officially today, a full two months earlier than expected.

Earlier this month Amweld officials announced plans to close plants on Niles and Garrettsville, sending those 250 jobs to Mexico.

The company also said at that time that it would negotiate the official shutdown date with its union whose contract expires in December.

Then, employees were called Wednesday, and were told to pick up their checks today, because the plant would be closed.

April Brooks, the wife of an Amweld worker says, "It's a shame. They got handed a letter on the 8th of October, and they were told that they would work a couple more months. And it's not even been 2 1/2 weeks and they locked the doors."

Employees say they're still uncertain about their pension and severance issues."

Another example of Business 'running-a-muck' and feeding the public with 'Double-Speak'. Another story about alleged foreign competition and 'market-place necessity' due to labor rates.

Another story about losing jobs to off-shore manufacturers but yet simply another excuse that hides ownership/management/'over capitalization flaws' brought on by greed and stupidity.

It's simply amazing what the topic of 'Globalization' can hide, for behind the curtain is the truth, and like the Wizard in the Wizard of Oz, just human error and greed.

Fact: When companies get over-capitalized, paying for something not worth the value expended, the cost factor never gets balanced

Fact: Labor is still a percent of overall cost; as in the case of McDonald's it's 15%, as in the case of Amweld, seven years ago, 12%. And, even if it were 20% there remains another 80% to be managed correctly

Fact: All other material costs, such as steel, have been spot market buys for decades which actually evens the 'playing field' to all participants

When arguing 'Globalization', make sure what the argument is exactly about, 'peel back the onion' to expose the truth rather than simply attempting to 'double-speak' the real issue away.

As so correctly stated by Forrest Gump, "Stupid is as stupid does"