Another Reason to Move the Supply Chain

This time for the Republic of China’s Foxconn, which among other things, assembles iPhones in a People’s Republic of China factory in Zhengzhou.

In Foxconn’s main Zhengzhou facility, the world’s biggest assembly site for Apple Inc’s iPhones, hundreds of thousands of workers have been placed under a closed-loop system for almost two weeks. They are largely shut off from the outside world, allowed only to move between their dorms or homes and the production lines.

The mainland Chinese workers are causing their own problems for Foxconn, also.

“It’s too dangerous to go to work,” a 21-year-old worker who has been confined to his dorm told The Wall Street Journal, saying that he was skeptical about the company’s claim that there was a low level of infections at the plant.

And

Some workers interviewed by the Journal said many colleagues had refused to go back to the production lines. Others had simply left, they said, sometimes abandoning their belongings.

And

Another Foxconn employee said most of his dozen-strong team of night-shift workers had either been taken to a quarantine facility or had refused to return to work. ….
“I don’t know who around me is a positive case,” said the worker, who has been confined to his dorm for a few days. “I’d be better off staying in the dorm.”

For good reasons or ill, the bottom line is that Foxconn cannot rely on its mainland collection of employees, much less the PRC government’s capricious responses to its Wuhan Virus situation.

Foxconn would be much better off to move its production/assembly facility back to the Republic of China, or to Vietnam, or to expand its nascent production/assembly facility in the US, or some combination of the three. The transition will be expensive, of course, but only in the short-term. Intermediate- and long-term, the company will be much better off, with a more reliable and stable work force, and so will Foxconn’s customers be.

A Raise in Pay

Chicago’s Progressive-Democratic Party Mayor, Lori Lightfoot, is at it again, this time in an obviously self-serving way.

Chicago Mayor Lori Lightfoot on Wednesday proposed an ordinance giving the office of the mayor an annual inflation raise capped at 5%.

Wow.

There are two reasons for an organization giving a pay raise to an employee. One is that the organization is doing better than in the past and is expected to continue at that increased level. This often garners pay raises for all employees, from the top to the bottom.

The other reason is that a particular employee has done especially well and can be expected to continue performing at that level, or the raise is granted after a period of exceptional performance to encourage the employee to continue at the elevated level.

The organization known as Chicago is a failed city. The tip of that failure:

  • violent crime in her city has increased 37% over 2021
  • the murder rate, in particular, is skyrocketing, even compared to 2021, which itself was up markedly over 2020
  • motor vehicle thefts to date are up 74% compared to the same period in 2021
  • major companies fleeing the city

There is no reason to expect this performance trend to do anything other than to worsen. The organization of Chicago is not doing well enough for across the board pay raises, much less for the Mayor or for anyone in the mayor’s office.

Lightfoot is the city’s MFWIC, and not only is the city’s failure her fault by dint of her role as the one in charge, the city’s failure is a direct result of her policies and behaviors. Lightfoot, in particular, deserves no pay raise.

Beyond that, in no way at all does anyone running this organization deserve automatic pay raises, which are independent of performance.

Indentured Servitude

The Service Employees International Union-United Healthcare Workers West wants to force unionization on companies and their employees whether those employees want it or not. The SEIU-UHW’s proximate target is California’s dialysis industry. California’s Proposition 29 is the union’s latest (after two prior ballot failures in the two prior election cycles) effort targeting dialysis.

The measure, which would require dialysis clinics to have a physician, nurse practitioner or physician assistant “on-site during all patient treatment hours, would cost dialysis clinics $376,000 to $731,000 per year—per clinic. That would drive many into bankruptcy closure because they can’t afford those costs.

That’s bad enough. Here, though, is the enforcement mechanism the union has included in its ballot measure.

[T]he language of Prop 29 says it would prohibit “clinics from closing or substantially reducing services without state approval.”

That’s naked indentured servitude. That’s what unions want. Recall unions’ prior and long-standing drive to force non-union workers in any company to pay union dues under the guise that the union is working for them as well as their actual members.

Now unions want to reduce businesses and their employees to the status of serfs, permanently tied to the land/permanently tied to operation.

Unions for Socialism

It doesn’t get any clearer than this.

Workers at an Apple Inc store in Oklahoma City’s Penn Square Mall have voted to organize, styling themselves the Penn Square Labor Alliance.

Here’s the deal, though, as laid out by Charity Lassiter, a member of the new organization’s organizing committee:

Now that we’ve won the election, it is our hope that management will come to the table so that we may collectively work towards building a company that prioritizes workers over profit and encourages employees to thrive[.]

To hell with profit, to hell with business success—which is how jobs get created, how wages increase—companies exist as non-governmental social welfare organs.

That’s the stuff of socialism.

Another DoJ Failure

DoJ has fined a business in Maryland $300,000 because it asked its employees for particular items of documentation as proof of citizenship or legal resident alien status instead of accepting the generic sets of documents that “Federal law” allows. Per DoJ,

Federal law allows workers to choose which valid, legally acceptable documentation to present to demonstrate their identity and permission to work, regardless of citizenship, immigration status, or national origin.

Regardless of…immigration status. So a company wants to be careful that it’s hiring legal workers by applying tighter standards to its own workforce, and DoJ objects. ‘Course if the company is caught with illegal aliens in its employ—that regardless of immigration status part—it could lose its license to operate.

But never mind.