More Cracks Appear in the Fox-Scam as Foxconn Admits it Underestimated WI Labor Costs

Well, well, the political love-fest over the much bally-hooed and promised 13,000 employees at Foxconn is already being shot down – by Foxconn. It appears that they underestimated their labor costs in WI – WHOOPS! – whose cost for workers is much higher than those in existing Foxconn manufacturing facilities located in China, India and Third World Hell-Holes. It appears that the politicians, in their haste to help Guv. Scott Walker out of his jam for failing to produce 250,000 jobs, simply didn’t understand that Foxconn would have to be able to manufacture LCD TV’s at a price point low enough to sell millions of units and still make a profit. Political overreach by Politicians who know nothing about operating a profitable business – only tax and spend.  TSK – TSK.

By the way – 250,000 imaginary jobs minus 13,000 imaginary jobs still leaves a deficit of 237,000 imaginary jobs. Just IMAGINE THAT! As for those 13,000 jobs – well, they may very well appear – but it still has to be determined how many jobs each i-SLAVE employee will be assigned.

From The JT, August 22,2018:

Adjusted business model

Woo said Foxconn has dramatically changed its initial presumptions about how it would manufacture in the United States. Originally the company figured it would simply duplicate its China model here — until it realized that the much higher labor costs here would guarantee failure.

“If, six months ago, you asked me: What would be the mix of labor? I would pull out the experience that we have in China and say, ‘Well, 75 percent assembly line workers, 25 percent engineers and managers,’ ” Woo said.

“So, ask me the question today,” he said, then replied, “now it looks like about 10 percent assembly line workers, 90 percent knowledge workers.” Advanced manufacturing here will be done largely by robots and a lot of automation, he said.

More thoughts from A Better Mt. Pleasant:

When U.S. manufacturers began moving operations overseas, they told the American people that it was to decrease costs and increase productivity – they said, as a result of increased labor costs. As we know now, it led to the demise of American manufacturing and catastrophic job loss.

Those companies weren’t lying. It did save them money.

When modern manufacturing companies talk about the increased use of robotics, they say it is to decrease costs and increase productivity. In today’s JT, Terry Woo says the employment model in Wisconsin has already changed because “much higher labor costs here would guarantee failure.”

He’s not lying. Critics at the announcement of the Wisconsin plant have always wondered how they would remain profitable with American labor costs.

Foxconn has invested billions into robotics. They have not been shy in international press saying wish to replace all workers with robots.

Of course there will be jobs. However, even before the last resident has left the area – this deal has gone from “75 percent assembly line workers, 25 percent engineers and managers,” to “10 percent assembly line workers, 90 percent knowledge workers.”

What is the next iteration of Foxconn’s employment strategy? We can’t know until they tell us – but one thing we do know, and history has shown us – it will be whatever benefits Foxconn’s profitability.

Just remember, you gave them $4.5 billion to build it.

While Foxconn now refuses to specify just what type of manufacturing facility they will build at their Mount Pleasant WI campus:

From Journal Sentinel:

Foxconn now declines to say it plans to build type of factory named in state, local contracts

Foxconn Technology Group on Wednesday said again that it will create 13,000 jobs in Wisconsin and invest $10 billion in its planned manufacturing campus, but declined to say it still plans to build the type of factory specified in its contracts with state and local government.

Responding to criticism from Democrats over changing plans for a project that could receive some $4 billion in public subsidies, Foxconn reiterated that it is committed to the jobs and investment numbers.

But in a shift from its stance of two months ago, the company on Wednesday did not offer assurances that it still plans to build the type of liquid crystal display panel plant the contracts cite.

No surprise here, as The Fourth Industrial Revolution is already here – along with the demands for a UBI (Universal Basic Income) brought on by:

The Robot, Unemployment, and Immigrants

The political approach to automation is similar, The World Economic Forum of Davos of 2016 was dedicated to the Fourth Industrial Revolution. The founder and director of the Forum, the economist Klaus Schwalb, even took to the effort of writing a book on the subject, for the conference: a book in which he expresses his concern. Previous industrial revolutions liberated humankind from animal power, made mass production possible and brought digital capabilities to billions of people. This Fourth Industrial Revolution is, however, fundamentally different. It is characterized by a range of new technologies that are fusing the physical, digital and biological worlds, impacting all disciplines, economies and industries, and even challenging ideas about what it means to be human. We need to take a concerted approach in the world, to make the positive impacts overriding the negative ones. The theme was practically ignored at Davos 2016, because politicians discuss now only themes at a short term: what has to be treated during an electoral period. In particular, Schwab called for leaders and citizens to “together shape a future that works for all by putting people first, empowering them and constantly reminding ourselves that all of these new technologies are first and foremost tools made by people for people. “Clearly, that goes against the tide of nationalism, the new vision for the US, India, Japan, China, Philippines, Hungary, Poland, Great Britain, Turkey and so on.

A number of economist and influential people, over the years have come out with the idea of a Universal Basic Income. It is time to cushion the society from tensions, instability and unemployment by giving to every citizen a fix income, so to give him a dignified life: and by spending its UBI, he would generate wealth and increase demand, which would stimulate therefore growth, and make a society just and stable. Martin Luther King was an early proponent, like the neoliberal economist Milton Friedman. Now the billionaires from Silicon Valley, like Elon Musk, Mark Zuckerberg, the venture capitalist Mark Andreessen, the democrat senator Bernie Sanders, have all expressed support to the idea of a UBI. And in the coming presidential American elections, a New York tech executive, will run with UBI as his political platform. He observes that Trump did particularly well in Michigan, Ohio, Pennsylvania and Wisconsin, states which have lost four million jobs because of automatization. “Higher the concentration of robots, higher the number of disgruntled people wo vote for Trump.” He plans to cover the two trillion dollars that UBI would cost (half of the US budget), with a new Vat tax, and taxation on the companies who profit from automation. Of course, in the US the idea that people who do not work receive public money, is the closest thing to communism, and UBI faces formidable cultural obstacles. But Andrew Yang, the candidate, says we will have otherwise in a few years “riots in the streets: just think to the one million of truck drivers, who are 94% males, with an average education of high school, suddenly all jobless…”

While the intelligentsia  of China speak about ABOLISHING iSlavery:

Old and new working-class people in China are adopting and appropriating digital media, while the digital economy is creating entirely new jobs, communities, and socio-political dynamics. The digital working class marks a fourth stage in the modern history of Chinese class politics, when China has become the world’s factory with immense labor power and increasing social inequality, when the content of Chinese working-class culture has become more diverse and impactful than ever as could be seen in the Fan Yusu phenomenon in spring 2017, all happening at a time when the results of China’s internal processes become more consequential for the world at large. What are the characteristics of China’s digital working class? How can we make sense of it, through what conceptual frameworks? This talk shall discuss the applicability of the “circuits of labor” model (Qiu, Gregg and Crawford, 2014), its premises, limits and implications for future research.

Big changes are now happening in both China and Mount Pleasant! Political Failure is now assured.

Please join Cindy and me in JUST SAYING NO to allowing Governor Scott Walker, Racine County Executive Jonathan Delagrave,  City of Racine Mayor Cory Mason & MTP President David DeGroot to violate the Wisconsin Constitution (and their Oath of Office) by granting special rights to Corporate interests, stealing people’s property, destroying multi-generational Farms alongside an entire long established Community, loosening environmental protections, permitting heavy metals water pollution, instituting slave labor wages, providing taxpayer subsidies to multi-billionaire Corporations, and politician overreach.

It’s Billy Preston! A politicians BFF!

 

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