Question

The Impact of NAFTA

Background: As NAFTA has eased regulations and lowered trade barriers, unskilled production work has flowed into Mexico, decimating the power of many unions in the U.S. More recently, semi-skilled jobs, and even some highly skilled jobs, have moved to Mexico as well. This exercise is designed to dramatize the impact of these trends.
Exercise: We will look at the following scenario from three different perspectives:

1. CEO,
2. Union Negotiator,
3. Plant Manager,

Scenario: Patriot Laboratories is a medium-sized electronics company based in Los Angeles. It designs and produces a small range of parts that are ultimately used in military hardware. Its products are all manufactured on-site, by a semi-skilled workforce of mostly Asian immigrants. Given recent gains in the quality of Mexican manufacturing, the Plant Manager believes that they could now move production to Ciudad Juarez, Mexico (directly south of El Paso), with minimal risk of quality glitches. The average wage in the U.S. Patriot Laboratories factory is $15 per hour, versus $6 per hour for comparable workers in Ciudad Juarez.

The CEO has called a meeting to hear input from the Union Negotiator and Plant Manager. Please provide reasons and input.

What should the CEO do?
1. Students born in Jan, Feb, Mar, Apr, May, or June must Argue/Present reasons for the Union Negotiator.
2. Students born in Jul, Sep, Oct, Nov, or Dec must Argue/Present reasons for the Plant Manager.
3. Students born in Aug will be the CEO(s) and will chime in with a decision and provide explanation of the decision.

Answer 1

Scenario:

As I born in February I would Argue/Present reasons for the Union Negotiator.

1. When the company shifted to the Mexico many of the workers may loss the job as they may not ready to work in that area. The compensation should be given to them.
2. If the labor shifted to the Mexico then they may not get the fair wages as they were getting here. The company provide the wages to them by should be more than the earlier wages they get here.
3. The facility such as house, food, transportation charges etc. would also has to be paid by the employer.
4. The policy regarding leaves would be changed. The leave policy should be efficient for the worker so that they can visit their place.
5. Work place safety and reliability of the position they worked on would be retained.