Rexnord, which is based in Milwaukee, intends to move production of industrial bearings from Indianapolis to Monterrey, Mexico. The move, expected some time mid year 2017 would eliminate about 300 union jobs.
Trump has encouraged business leaders that relocating factories between states and negotiating for tax breaks is not a problem for the Trump administration.
Some state leaders see this as an open invitation for businesses to strong arm states for even more economic and tax relief to stay/expand or locate in their state.
The steelworkers union said Rexnord rejected the union’s proposals for wage freezes and other concessions to lower costs. The union said the hourly wages at the plant, which currently range from $18.00 to $30.00, would have to drop below the U.S. minimum to match the company’s estimated costs savings in Mexico.
This makes Trumps 35% tariff in situations like this a needed stick to stop the unrealistic need for an American worker's
to compete with a $3.00 to $5.00 wage in Mexico.
Tax reform on manufactures and regulatory reform are the carrot. The Tariff is the stick.
Trump has encouraged business leaders that relocating factories between states and negotiating for tax breaks is not a problem for the Trump administration.
Some state leaders see this as an open invitation for businesses to strong arm states for even more economic and tax relief to stay/expand or locate in their state.
The steelworkers union said Rexnord rejected the union’s proposals for wage freezes and other concessions to lower costs. The union said the hourly wages at the plant, which currently range from $18.00 to $30.00, would have to drop below the U.S. minimum to match the company’s estimated costs savings in Mexico.
This makes Trumps 35% tariff in situations like this a needed stick to stop the unrealistic need for an American worker's
to compete with a $3.00 to $5.00 wage in Mexico.
Tax reform on manufactures and regulatory reform are the carrot. The Tariff is the stick.
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