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Old 10-06-2008, 11:11 PM
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A response to a quote made about employer/employee trust...

"Right now, trust between employers and employees appears to be at an all time low."

I wonder if that is why there had been and still is such a push in the independent contractor and independently owned small business in this country over the last 5-8 years?

I lived in Hamilton Ohio, one of the main sources of income there many years ago used to be the Paper Mills, that industry shrank immensely back in the late 70's and never truly recovered in that area. It wasn't the fact that there was a bad economy so much as there was a shift in industry and standards that caused major changes and the loss of a great deal of jobs.

Back in the 1980's Scientific Atlanta laid off an entire section of their manufacturing. This was during an upswing in the economy. It was the change and growth of the industry that was causing major changes I think.

I'm not saying that the economy is never the reason that factories close, or that people lose their jobs, quite the contrary. I do propose that many times that a company changes how it does things, has to lay off employees etc, it is often related to other things, mismanagement of the company and it's finances. Labor disputes have been the downfall of companies many time, it is very difficult for a company to fully recover from a strike, especially a prolonged strike.

Many companies are forced to close due to environmental reasons. Environmentalists lobby for stricter standards, forcing higher costs, revamping of equipment and causing those that have done the job for a long time to be obsolete. U.S. Sugar is closing down in Florida in the next couple of years, you would think that with the current demand of Ethanol and things of that sort they would be booming. The reality of it is that environmentalists are pushing strongly to reestablish the everglades and facts are that U.S. Sugar owns and plants much of the land they want for that project. At the same time their polluting of the main water source for the surrounding area doesn't help. Then there is the competitive facts, it is very difficult to stay competitive with sugar companies coming from other countries. I know everyone always talks about the tax breaks and that being the main reason companies produce in countries such as Mexico, India, and the like. But it is actually the fact that there are not many of the mandated regulations and requirements that increase the production costs, then when mixed with the fact of employee wages for the area they are in mixed with the lower tax rates, what do you expect a company to do? Unpatriotic it may sound or even be, but the facts are facts, if the absence of mandated regulation save not only production time but 30-60% of production costs, and then you mix this with a lower payroll without loss in product quality, and then you have lower tax rates. Even with the highest of Tariff's it's still economically sound to do your manufacturing elsewhere is it not? The only way to combat this I think would to be bringing everyone to the same level of environmental restrictions and cost of living rates, that I don't see ever happening though. Not to different really than a company moving facilities from Ohio to say Montana because the cost of living is lower in the area of Montana, and they give them tax breaks to come, plus there are less manufacturing regulations in a less populated and less industrialized area than there are in downtown Cleveland or Hamilton.
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