[Editor’s note: The following is a cross post that originally appeared on CNBC.com]:
Apple CEO Tim Cook’s announcement earlier this month that the company will start building Macs closer to home in 2013 was seen as a milestone that could help jump-start U.S. manufacturing.
But over the past few years, factories in the American South from the Carolinas to Alabama to Kentucky have already experienced this.
Both U.S. and foreign companies have opened plants in south eastern states in recent years, many since the end of the recession. Others are expanding existing plants or have plans to break ground in 2013.
In South Carolina, Boeing builds 787 Dreamliners just north of Charleston, and Starbucks roasts coffee beans in St. Matthews, outside Columbia.

A technician assembles a General Electric jet engine in Durham, North Carolina. (Jim R. Bounds, Bloomberg / Getty Images)
General Electric is once again making water heaters and refrigerators at its gigantic Appliance Park plant in Louisville, Ky. A Mobile, Ala., shipyard run by Austal USA is growing so quickly that in the past two years the Australian company’s workforce has swollen from 800 to 3,300.
Over the past year, North Carolina’s Secretary of Commerce Keith Crisco says about 80 percent of the new companies coming to the state involved some form of manufacturing.
“That’s a big number for us, and the jobs are better than they were,” he said.
Companies are taking advantage of state- and local-funded business incentives and convenient transportation routes, as well as the Southeastern U.S.’s lower cost of living and a largely non-union labor force that’s inexpensive relative to other parts of the country.
Although hundreds of thousands of factory jobs have disappeared in the South and across the country over the past two decades due to automation and outsourcing to cheaper labor markets in China, Vietnam, and elsewhere, the United States remains a manufacturing powerhouse.
The country still produces 18.2 percent of the world’s manufactured goods, edging out China’s 17.6 percent, according to the latest figures from the National Association of Manufacturers and World Bank.
Today, however, even Chinese companies are building factories in the Southeast, ducking rising labor costs at home, and to be closer to customers and take advantage of the region’s pro-business policies. One of the first was appliance maker Haier Group, which opened a $40 million refrigerator factory in Camden, S.C., a dozen years ago.
One of the latest is Lenovo Group, which operates a fulfillment center in Whitsett, N.C. In October, Lenovo announced plans to begin making ThinkPads there in 2013, adding an estimated 115 jobs to an existing workforce of 2,200.
While factory jobs haven’t returned to pre-recession levels, they’re getting there. In Georgia and Tennessee, manufacturing employment grew 3 percent in the 12 months ending in October, nearly twice the national average of 1.6 percent, according to the Bureau of Labor Statistics.
Factory employment was above average in Alabama (2.9 percent), South Carolina (2.4 percent) and Mississippi (2 percent) as well.
“It’s a business climate like you won’t find anywhere else,” says Doug Woodward, an economics professor at the University of South Carolina and incoming president of the North American Regional Science Council, which studies local economies.
Low-cost labor is one of the region’s big draws. Economists cite the lack of a large union presence as a benefit since it allows companies to move factory workers from job to job as needs change. In seven Southern states, union members account for less than 5 percent of the workforce. That’s less than half of the 11.8 percent national average, according to the Bureau of Labor Statistics.
“It’s all about flexibility,” Brian Jones, Austal’s chief financial officer, told NBC News. “Because we treat our people properly — benefits, pay, safe working conditions — there’s not a need for representation.”
However, critics point to academic and economic research showing that in right-to-work states, wages and benefits are lower.
“They’re just not as well compensated,” says Matthew W. Finkin, an employment law expert and professor at the University of Illinois’ law school. “So they’re creating more jobs and giving more work to people, but they’re not giving the benefits and other aspects of employee protections (workers would) have in other states if they were in (a) union.”
The local chapter of the Sheet Metal Workers International Association has been unsuccessful in three attempts to organize Austal’s Mobile, Ala., shipyard. A representative of Local 441 could not be reached for comment. A representative of the SMWIA’s national office declined to comment.
Crisco maintains that manufacturing jobs coming into the South pay more because they require more technical skills.
He argues that right-to-work laws are only one factor drawing companies to the region, along with generous workforce training programs and incentives such as tax breaks that South Carolina gives to companies making substantial capital investments in the area.
“Sure, it’s controversial about incentives, but in terms of locating manufacturing jobs here, it’s been fairly successful,” Woodward says.
Here’s a look at activity in a handful of southern states where manufacturing jobs are on the rise:
South Carolina:
South Carolina’s manufacturing industry lost 100,000 jobs during the 2000s before the 2007-2009 recession wiped out another 40,000,Woodward says.
Recent moves by Boeing, BMW, Michelin, and other tire and auto parts manufacturers and durable goods makers to open or expand factories have reversed that trend. Boeing alone created 8,000 new jobs in the past two years, Woodward says.
“We’ve gained 10,000 to 15,000 jobs,” he says. “Our immediate prospects are very good, but it’s going to be a long road if we’re going to recover” historic manufacturing employment levels.
In January, BMW said it would add 300 people to an existing workforce of 7,000 at a highly automated auto manufacturing plant in Greer, the company’s largest factory outside of Germany. The expansion will to boost annual production to 350,000 by 2014.
“The deep roots of the workforce here in manufacturing are really helpful and we developed a close relationship with the local tech colleges to improve our workforce,” BMW Manufacturing President Josef Kerscher said in a late November talk at the University of South Carolina’s Darla Moore School of Business. “I’m really satisfied seeing how well prepared our workforce is for advanced manufacturing.”
North Carolina
The textile and apparel makers that made up the bulk ofNorth Carolina’s traditional manufacturing sector “left and are not coming back,”Crisco says. They’re being replaced with companies like Lenovo, which is movingThinkPad manufacturing to the state from Mexico.
Jeld-Wen, an Oregon-based window and door maker, announced on Dec. 13 that it is moving its North American headquarters to Charlotte,adding 142 management and administrative jobs. The company already operates two manufacturing plants in the area with 2,200 employees.
In 2012, manufacturing accounts for 20 percent of North Carolina’s gross domestic product, and that doesn’t include recently announced deals that will add to manufacturing employment in the near future, Crisco says.
Alabama
In Mobile, Austal is building high-speed, aluminum ships forthe U.S. Navy, made to quickly deliver troops to a war zone or disaster area.
Austal is one of many foreign companies that have opened factories in and around Mobile in the past decade, a group that includes Mercedes Benz, Honda, Toyota and Hyundai. In 2013, Airbus will join the list.
The European aircraft manufacturer is expected to break ground on a $600 million complex in 2013 and begin assembling planes there two years later, creating 1,000 jobs, according to the Mobile Area Chamber of Commerce.
Though mega deals like the one with Airbus get the most attention,94 percent of factories in the tri-county area around Mobile are domestic, says chamber spokeswoman Susan Rak-Blanchard. Attracting smaller companies that bring 50 to 150 jobs to the area has been “our bread and butter over the years,” she says.
Kentucky
The number of people working at GE’s famed Appliance Park industrial complex in Louisville peaked at 23,000 in the early 1970s before starting to drop a decade later and hitting bottom in 2011 at less than 2,000,according to a recent report in The Atlantic.
In February, the company returned to the plant, making low-energy water heaters there instead of having them built by a Chinese contractor. A month later, GE moved a refrigerator assembly line from Mexico to the plant, according to the report. (GE is a minority owner in NBCUniversal.)
So far, GE has poured $800 million into revamping manufacturing operations at the facility, including $150 million on a new dishwasher assembly line. According to the company, factory workers helped design the line to be faster and safer, and as a result per-unit production time has dropped 65 percent.
“Companies are looking for a lower cost place to do business and a skilled workforce,” said David King, Central South Carolina Alliance marketing vice president. “It doesn’t get more basic than that.”
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- At Least One Mac to Be Made in USA: CEO Cook
- NY Factory Activity Declines for a Fifth Straight Month
- Manufacturing in a Compromising Position
©2012 CNBC LLC. Featured image courtesy Getty Images.




























































































































DIgnified
Dec. 22, 2012 at 9:47pmI’m all for slaving out the servant class in the south. Put those lazy sponge Republicans to work. There’s lots of floors to be swept and cans to be picked up. Pay them their $7.25/hr and let them fell like millionaires.
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KICKILLEGALSOUT
Dec. 21, 2012 at 10:18pmI don’t mind American businesses manufacturing in the South, the problem I have is Foreign companies especially the Commie Chinese companies who can’t be trusted and should be sabotaged by locals any chance they can. Many of these Chinese companies have come to your small towns in the South because some corrupt local official probably went to China and got into bed with the Commies by offering discounted land, tax breaks (at your expense), and cheap labor. Not to mention they are getting investors visa’s which sell our sovereignty to the highest bidder. Next thing you know you have Chinese managers, Chinese are setting up shop in your town and taking over. You are merely the servants in your own town which soon will become theirs.
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DIgnified
Dec. 22, 2012 at 9:43pmWhat a f u c k i n g p u s s y you are. Have the balls to do it yourself or stfu. I love watching you girls b i t c h about how much you wish it was you doing the game rigging still. Lamenting the losses of your beloved all-for-us-none-for-them lifestyle. You earned this. You earned your spot at the bottom. This and every thing that comes to you is payment for your ‘animal farm 7 commandment’ way you treated the law and America.
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bankerpapaw
Dec. 21, 2012 at 5:38pmDo you know why companies are moving to the South? We appreciate them, plus, no damn greedy
union thugs to deal with?
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GEAUXTIGERSSS
Dec. 21, 2012 at 4:38pmI live in Bama and there are a lot of people here that make a good living in manufacturing. Our governor has stated the number one priority for businesses to move is that we are right to work. Asian companies won’t even look at a non right to work state. We also have a very strong 2 year community college system that trains workers to feed them into skilled manufacturing jobs. Bama is definitly on the right track. Medicaid is what is draining all of our state resources so we want to keep the jobs coming and get people off the govt dole.
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GEAUXTIGERSSS
Dec. 21, 2012 at 4:40pmI work with a yankee from Michigan who came to the south bc her hubbie is in the steel business and this is where the jobs are. She always tells me she is cancelling out my vote. She will never get it.
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whotaughtyouthat
Dec. 21, 2012 at 3:37pmAs a Michigander who has never liked what I saw in the unions. Hip Hip Hurray for right to work. Don’t tell me it will make things worse here. The only problem I see is brain washed union members trying to stop non-union companies from starting here. Fortunately there are a lot of union members who have been dying to get out. Looking at all the closed food processing plants in my area I can’t wait to see some changes. I know what we are seeing in the south will make it’s way back up here.
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flntlok1949
Dec. 21, 2012 at 2:07pmHurrah for Dixie! All they need to do is keep Unions from taking over! Hmmm! Seems they had that problem once before! May be why Unions don’t go over well with most Southerners!
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Stone Cold Truth
Dec. 21, 2012 at 1:45pmDon’t worry, Obama will find a way to ruin it. He wants all those jobs to be in blue union states. What the tyrant wants the tyrant gets. Nothing is safe from the clutches of our new state captialist government.
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tenvolman
Dec. 21, 2012 at 10:36amI don’t see how progressives can argue with this, is this not exactly what they want, “redistribution of wealth” Instead of 2 or 3 thousand union workers receiving very high pay and benefits, these companies, such as Boeing have 8000 workers making a good living, paying taxes, and supporting their community. Redistribution done the right way. That is of course if you don’t resent some at the top who make a lot of money.
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JeffersonsPen
Dec. 21, 2012 at 9:39amUnions have become vast pools of “useful idiots” Mr. Lenin spoke of !
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Lucky3000
Dec. 21, 2012 at 8:37amBorn in Alabama, raised in Miami, FL….When I grew up I got the heck out and came back to the real south in 1982…small town Georgia…..I’m still here…I love the south…….Love the weather…Yesterday was 72 degrees………..
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Zorch
Dec. 21, 2012 at 8:33amOnce upon a time I was a democrat union representative in a steel plant with 21,000 employees. For all my work, I get $85 a month retirement because the unions “broke” the industry and it went bankrupt, with unfunded liabilities that taxpayers are now having to financially support. And so it is with unions demanding more and more from companies that in the end cannot afford to pay for the medical and retirement “negotiations” made with unions. And this is the same sort of thinking democrats use for all “entitlements” let the masses pay for the few, but eventually, there are not enough people paying into the system to support the takers, and like a company, a city (Detroit) or state, goes bankrupt. Collectivism is a bane on any society, except for those in the beginning; they will get theirs. It’s a Ponzi scheme. It’s a fools dream, and you have things like Social Security as examples of a non functioning collectivism. There are still people who believe their FICA payments are in some sort of fund waiting for them, when it was the Dem’s that put that money into the general fund to spend it, much like Obama wants to do by taxing the rich … none of those additional taxes will make your life any better, they’ll just spend it all and want some more. Can’t wait till these dinosaurs either die out or are removed from office. They’ve been there too long and their ideas are straight out of the Hippee generation; redistribution.
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american warrior
Dec. 21, 2012 at 6:33amI live in the south. been here all my life and I can tell you it was a lot better 20 years ago. before all the rich and yankees moved here. we used to have lakes and streams where you could camp and fish and enjoy time with your children. there all developments now and private property bought up by yankees who made all their money workin for unions. after they buy up all the property around our lakes for their developments they try to kick us out and make it private. no lake for you… I’ve been up north yall can keep it. and the yanks that are here thinking they can run us out. we’re getting ready to serve up your eviction notice and take it back… :)
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JungleTrump
Dec. 21, 2012 at 7:34amIt’s not a yankee problem. The same land take over happens up north as it does in the south. There’s still many places to fish and hunt, but many of them require a lease to hunt on them. The geneal population is not the problem, it’s the system. Property has become higher priority than quality of life. What good is a million dollar property if you have not time to enjoy it?…I say nada.
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MittensKittens
Dec. 21, 2012 at 7:51amThis should tell you something, NO UNIONS MEANS GOOD JOBS!
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Bad Kitty
Dec. 21, 2012 at 8:12amHow did Unions become this abomination.. I dont know
Unions were supposed to be here to make a factory worker last more than 5 years! Not Close out Businesses!
We Have to Regulate Unions back to their original job, Making Workers Last Longer doing their job.
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Tayper
Dec. 21, 2012 at 11:47amThere here in Texas too!
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dixie63
Dec. 21, 2012 at 2:11pmAMERICAN WARRIOR, love your post. I have been in South Carolina nearly 50 years, and have seen the changes you are talking about. Makes me mad.
We in the South are being taken over by yankees from the north, and illegals from south of the border.
God help Dixie!!
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DIgnified
Dec. 22, 2012 at 9:44pmNo one wants to go to the south. But there’s an abundance of cheap dimwitted servile labor.
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LatvianinUS
Dec. 21, 2012 at 5:15amI’m a European transplant here, and I love it here, 2nd amendment, lower taxes and so on. Libs can keep all their BS and stay up north and out west, we don’t need you cr** here. We should pass some laws that if you try to bring your stupid ideas here piss off and go back to where you came from, we have been doing just fine without your donkeys. South all the way. BTW drive a pick up.
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Zach2orJack
Dec. 21, 2012 at 10:36amWe’re glad you could join us. Most people that come here find that it is a great place to live. The people are friendly and we still believe in looking out for each other. Kids still say yes sir/ma’am, please and thank you. Other people can say what they want about the South but I’ve been all over this country and I wouldn’t want to live anywhere else.
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MisterSarcastic
Dec. 21, 2012 at 4:12am“They’re just not as well compensated,” says Matthew W. Finkin, an employment law expert and professor at the University of Illinois’ law school. “So they’re creating more jobs and giving more work to people, but they’re not giving the benefits and other aspects of employee protections (workers would) have in other states if they were in (a) union.”
I imagine when you consider the cost of belonging to a union and the extra taxes you pay due to union thugs muscling in on government contracts, the pay works out about the same.
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kaydeebeau
Dec. 21, 2012 at 7:59amExactly – the cost of living is much lower in the South – what the leftists and unionistas fail to understand is with wage increases, prices for goods and services go up making any wage increase meaningless.
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v15
Dec. 21, 2012 at 12:12amThe South will never “rise” again. Every southeastern state is fighting for dead last in education and SAT scores.
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JeffersonsPen
Dec. 21, 2012 at 9:58amIn an Education system dictated out of DC…………..Part of the commie plan is to dumb down the youth, not even teaching them basic logic skills………………so having a low score on a test in a system that is broke really doesn’t mean sh%^$. I assure you the youth in the south still know a hard days work, more so, than any union raised brat !
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thegreatcarnac
Dec. 21, 2012 at 11:03amThe Southeast has more than it’s share of monorities who keep the grade averages low. If their scores were not counted ours school scores would be above average. We know. We have run the numbers. So…why don’t you invite them to where you live…
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dixie63
Dec. 21, 2012 at 7:55pmTHEGREATCARNAC, I was going to post the same thing. The South always gets put down because of our education statistics, but the people insulting our intelligence never mentions the demographics. Send our minorities to New England, and watch their scores plummet!
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Git-R-Done
Dec. 20, 2012 at 10:46pmI hope that there aren’t any liberals who move to those Southern states. We don’t want their poisonous policies to ruin the South like they have ruined everywhere else they’ve been in power.
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Southern Rebel
Dec. 20, 2012 at 8:56pmWhile we certainly welcome newcomers to the South, please be reminded that we ask you to respect our traditions and customs, our Heritage and our way of life. We ask that you try to assimilate. We also ask that if you’re liberal, please stay up north or out west. If you’re pro-union…you’re gonna hate it down here and we’re not going join unions and end up like the yankees up north in the rust belt who’s greed and selfishness (union made), cost all of y’all your jobs.
I myself am a migrant to the South and have adopted it, via assimilation as my home for which I have a great afinity towards. You’ll find there truly is ‘nothin finer’. :) MERRY CHRISTMAS y’all!!
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bhelmet
Dec. 20, 2012 at 9:21pmI, too, am a transplant and have been since ’94. Never going back – I am a southerner and I, too, assimilated. Don’t bring your stupidity here, just your work ethic.
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momrules
Dec. 20, 2012 at 9:44pmBorn and raised in Texas Southern Rebel and I agree. Texas has been invaded, not just by illegal aliens but by liberals from other states. They run from the government they support and bring their ideology here to start the same old process that made them leave their home state to begin with.
The South is, has been and always will be American. Liberals…..don’t come here or change your ways to adapt to ours. We have seen what you have done everywhere you exist and we do not want you here.
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banjarmon
Dec. 21, 2012 at 1:18amI’m as REDNECK as you can get, raised in North Florida just below the Alabama line…Just keep the unions out and all will be fine!!!
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MisterSarcastic
Dec. 21, 2012 at 3:34amSame here in SC, Mom. Retirees are invading our towns to escape the over taxing, over regulating government they created where ever they came from. When they get here they vote for every tax increase and every government expansion coming down the pike. They think we’re the one’s who are stupid. These actions will eventually result in a situation where we won’t be able to retire here. I guess Mexico is gonna profit from all of this eventually cause no one will be able to retire in the US.
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RIGHTWINGHATEMACHINE
Dec. 20, 2012 at 8:56pmyawn…no one cares.
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Fubared
Dec. 20, 2012 at 9:09pmright to work, or right to dues and little work. keep yawning, and pay your dues hater.
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Siobhan Kelly
Dec. 20, 2012 at 9:15pmYou should, hate machine. With the South rising again, and we always knew we would, it gives us more political clout, not to mention more money. You know, if the South seceded today, it would be a different story than in the 1860′s, when the South was agrarian. The problem in the Civil War was the South’s lack of industry, and dependence on imports from abroad, which were cut off by the blockade. We don’t have that problem now. In addition, much of the military is from the southern US. The South always had the better generals, and now I think we have an advantage in the number of trained military. But I don’t think we have to secede- we just need to overpower politically and financially the northern states, which are being weakened by unions and liberal policies.
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GoodStuff
Dec. 20, 2012 at 9:21pmJust keep the unions away and the South will continue to rise, and leftist states continue to collapse.
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momrules
Dec. 20, 2012 at 9:45pmYes we do sweetie, yes we do.
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MisterSarcastic
Dec. 21, 2012 at 3:51am@ Kelly,
To further your argument. The Yankees had three times as many men, three times as many weapons, the weapons were three times better than ours and they had three or four times as many miles of railroad track. With all of that it still took them four years to defeat us. That’s a sad commentary on the north and on the leadership of Lincoln as Commander in Chief. I agree. The outcome would be very different today. I also agree that we can win at the voting booth if we can find a party that has the country’s best interests in mind (unlike the Republicans) and not the interests of the party leadership (like the Republicans).
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FloridaFarmGirl
Dec. 20, 2012 at 8:52pmThe South will rise again!!!
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denkat56
Dec. 20, 2012 at 8:17pmJust don’t get the unions involved.
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1947
Dec. 20, 2012 at 8:31pmNO UNIONS for America…..that is the Commie way
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RJJinGadsden
Dec. 20, 2012 at 8:41pmThey did point out that the Aussie ship builder in Mobile had voted against the union coming in a couple of times already. I am aware the Mercedes and Honda plants’ employees keep the unions out as well.
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Clownzilla
Dec. 20, 2012 at 9:02pm@1947
Communist countries are gigantic unions.
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Twobyfour
Dec. 21, 2012 at 5:35amClownzilla, nope. Once the state owns all means of production, unions became superfluous. Unions are co-opted by the state and all the essential elements of unions are removed (for instance, a strike would be an activity against the owner, that is the state and thus anti-state activity). Unions are formally kept, but only as means of further taxation–usually management positions “required” (or one was expected) being an union member, but all one got was paying dues.
Also, in a communist country, there is no welfare for the regular people. The main reason is that since the state is the owner, you’d eat out of the state’s money. The redistribution now goes from the working class to the elite–nomenclatura., the collectivist oligarchy.
The best analogy would be that the state becomes one big monopoly and the people become somewhat more modern version of serfs.
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