7.04.2005

competitive advantage

I had seen this story reported in US newspapers. I didn't understand the Canadian significance - until Lone Primate sent the CBC link, and someone (I think ALPF) pointed this out:
The factory will cost $800 million to build, with the federal and provincial governments kicking in $125 million of that to help cover research, training and infrastructure costs.

Several U.S. states were reportedly prepared to offer more than double that amount of subsidy. But Fedchun said much of that extra money would have been eaten away by higher training costs than are necessary for the Woodstock project.

He said Nissan and Honda have encountered difficulties getting new plants up to full production in recent years in Mississippi and Alabama due to an untrained - and often illiterate - workforce. In Alabama, trainers had to use "pictorials" to teach some illiterate workers how to use high-tech plant equipment.

"The educational level and the skill level of the people down there is so much lower than it is in Ontario," Fedchun said.

In addition to lower training costs, Canadian workers are also $4 to $5 cheaper to employ partly thanks to the taxpayer-funded health-care system in Canada, said federal Industry Minister David Emmerson.

"Most people don't think of our health-care system as being a competitive advantage," he said.
What a sad commentary on the state of things in the US. People here are so used to blaming unions (i.e., paying people a living wage and offering them some modicum of job protection) for the absence of manufacturing jobs. This is an interesting bit of truth-telling.

13 comments:

barefoot hiker said...

I can't remark on the relative educational standards; I guess the Toyota folks have no reason to lie on the one hand or mince words on the other, so perhaps there's something to that. But what I've seen several articles on lately, notably at CounterPunch, is that a national single-payer health care system is a competitive advantage... at least where manufacturers are concerned, because it means they don't have to pay as much for their employees' health care. Say what you want... all things being equal, a for-profit HMO is never, ever going to be as inexpensive as a government-funded not-for-profit system. How could it possibly be? First of all, it lards on a profit margin, right from the word go. Secondly, that encourages every other aspect of the health care system to chime in "me too me too!" for their share. Finally, since they're really all about raking in the dough, not looking after people, they have the added cost of fighting not to have to provide expensive services, which means laywers, court time... and, often, waiting to see if their policy holders die before they have to pony up. A less humanitarian health care system worthy of even being called a health care system would be difficult to conceptualize.

While I am, of course, happy that this means jobs for Canadians, it gives me no joy that it comes at the expense of average Americans, who are deprived both of jobs and the health care that ought to be their birthright. The United States needs a Tommy Douglas, but there's none in sight. :(

laura k said...

"A less humanitarian health care system worthy of even being called a health care system would be difficult to conceptualize."

That's why I always use quotes around the word "system" when referring to health care in the US. It's a non-system.

When Democrats go on about the Clintons' proposal, and how the Repubs and media killed it, I am always reminded that the private insurance companies loved the proposal. That means it was designed to be profitable for them. Which means it was not a universal system at all.

Rognar said...

Hey, I'm back. This announcement is a bit of good news. When I was looking to buy a new car two years ago, part of my decision to choose a Toyota Corolla over a Honda Civic was that the Corolla was built at the Cambridge, Ontario plant. Unfortunately, I think the new jobs created by Toyota will be more than offset by job losses at GM. I know that no plant closures have been announced by GM yet, but I think it's only a matter of time.

laura k said...

Hey Rob, welcome back. Hope you had a nice vacation. (Do you folks call that holiday, like the Brits?)

I was thinking of you as we were discussing national health insurance as a competitive advantage...

barefoot hiker said...

Unfortunately, I think the new jobs created by Toyota will be more than offset by job losses at GM. I know that no plant closures have been announced by GM yet, but I think it's only a matter of time.

I think you've probably got a point there. :(

Rognar said...

Yes, it was a good break. Atlantic Canada is nice this time of year. Oh, and like you, we call it vacation. The word "holiday" is reserved for special days like Christmas and Canada Day.

Rognar said...

I was thinking of you as we were discussing national health insurance as a competitive advantage...

Yeah, I'm sure you were. Compared to American health care, it probably is.

Marnie said...

Pondering the holiday/vacation question ... I ask people if they're taking any holidays this summer, or if they're going on vacation. "Holiday" seems to refer to the time off from work, whereas "vacation" has more to do with a trip away somewhere.

I may change my mind in five minutes, but that's my opening bid.

barefoot hiker said...

For me, a "holiday" is a statutory day off; Christmas, Canada Day, Good Friday, that kind of thing. A "vacation" is time off from work a person arranges themselves. I never say "going on holiday" like the British would. Even "going on vacation" seems less common among the people I know than saying "going on a trip to [X]", which they do "during my vacation".

laura k said...

I've been to [X], it's very nice.

Seriously though, that's about the same as here. We do say "I'm on vacation" or "we're going on vacation" but that may be a regional/local expression.

As long as I don't have to go on holiday. ;-)

Anonymous said...

Lets let "Green Day" sum it all up for us..."Holiday"

I don't think they will be invited to play the Whitehouse anytime soon...

---------------------------------

Hear the drum pounding out of time
Another protestor has crossed the line (Hey!)
To find, the money's on the other side

Can I get another Amen (Amen!)
There's a flag wrapped around the score of men (Hey!)
A gag, A plastic bag on a monument

Chorus...
"The representative from California has the floor"

Zeig Heil to the president's gasman
Bombs away is your punishment
Pulverize the Eiffel towers
who criticize your government

Bang bang goes the broken glass and
Kill all the fags that don't agree
Trials by fire satisfyers
Thats Not a way that's meant for me

Just cause
Just because we're outlaws yeah!

I beg to dream and differ from their hollow lies
This is the dawning of the rest of our lives

This is our lives on holiday!

barefoot hiker said...

I've been to [X], it's very nice.

Myself, I've always admired the very liberal rating of the place. :)

I've been to paradise but I've... never been to [X]...

laura k said...

Lets let "Green Day" sum it all up for us..."Holiday"

Excellent - thank you for posting!

I've been to paradise but I've... never been to [X]...

Which is more than I can say for this tripe! ;-)