While remaining neutral on the RTW issue, I noticed that many RTW supporters hold the belief that numerous businesses will relocate to Michigan. There is a belief that Michigan's industrial output will soar with RTW. I read the following article and wondered about a few things....
Even after years of Mexico’s cost of living inching up and American wages going down, Mexico’s labor rates are still a fraction of U.S. rates. Mexico’s auto assemblers nowadays pay $4 to $5 an hour. U.S. rates differ all over the map now, from $28 an hour in wages for the Detroit 3, to $14 an hour for new Tier 2 Detroit 3 workers, to hourly wage rates at the transplants that vary from $15 into the high $20s.
But all of them are far higher than Mexico’s $5. And the going rate at Mexican parts plants these days is about $2 an hour. Throw in the benefits that are standard in Mexico, and a parts worker’s hourly compensation package is closer to $3.
Read more: http://www.autonews.com/article/2012...#ixzz2EnsukKnD
So I wonder just how can Michigan compete with Mexico even that it is now RTW? Many Japanese and German manufacturers are skipping the southern RTW states altogether and setting up shop south of the border. Will Michigan be able to compete now that it is a RTW state?
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