Originally Posted By: Shannow
Jordan,
back in 2014, it was an interesting thing with Toyota...they were claiming that their cars were uneconomical, as wages were so high, so it was time to close and import.
An astute reporter suggested that it was a circular argument, Oz high prices (not just for cars) , Oz high wages to pay for the cars, so how much will a Camry drop for the average Aussie, reducing wages pressure when they are imported....ummmmm....none as it seems.
When we moved to Adelaide in the '70s so that my sister could go to school (Vic wouldn't let a spina bifida kid in a chair into "normal" schools), Dad welded chassis for Chrysler.
I have only visited Australia and admittedly don't know much about it's manufacturing economics. But, if its car manufacturing is anything like America, the "high-wages" statement means high for the skills set required to do the job.
There are people I personally know, who work in automotive manufacturing, who think assembly workers should have the same wage as tradesmen (plumbers, electricians, carpenters, etc.) Which is utter nonsense when you compare the job related tasks, training, and certifications require to do each respective job.
When low-skilled assembly workers unionize and/or demand higher wages, it sounds great in theory. But, they are unknowningly contributing to their own future layoff. It would be great if an assembly line worker straight out of high school with a little on-the-job training could make the same money as skilled tradesmen with yrs of experience and certifications.
But unfortunately, and as the comments about gov't funding for Holden likely indicate, ecoonmics do not work that way for long... or at least not without the tax payer propping it up.