Reborn Industrial Tycoon

Chapter 362 We all have a plan B (please subscribe)

Li Weidong came to Whirlpool's headquarters again and met Smith.

"Mr. Li, I didn't expect that we would meet again so soon." Smith then asked: "Going back and forth between the United States and China in a short period of time must be quite tiring, right?"

"After the last meeting, I did not return to China. As you know, as a Chinese, it is not easy to come to the United States. Just applying for a visa is very troublesome, so I took this opportunity to stay in the United States for a while.

If you have time, visit the famous places in various parts of the United States." Li Weidong replied with a smile.

Smith nodded: "That's right. For people who want to come to the United States, the visa officer is indeed a big obstacle, and the immigration office is also very troublesome."

The two exchanged some pleasantries, and then Smith asked: "Mr. Li, what's the matter with you coming to see me this time?"

"I mentioned it last time, the proposal to move the microwave oven production line to China. This time I made a detailed plan. I hope Whirlpool can consider it again." Li Weidong said, handing a document to Smith.

Smith took the plan and did not open it, but said: "Mr. Li, I really don't want to talk to you about the microwave oven right now. I've been worrying about this damn microwave oven for a week!"

"What happened?" Li Weidong asked.

"We have a strike at our microwave oven factory in Wisconsin, and it has been shut down for almost a week now!" Smith did not hide it.

Things like strikes cannot be hidden even if they are concealed from each other. In many cases, in order to create public attention, labor unions will take the initiative to tell the local media about the strike, and the media is also happy to report on the strike in order to make it a hot news topic.

Li Weidong, the culprit, showed a surprised expression and asked, pretending not to know: "Why are the workers going on strike? Are they dissatisfied with the wages or the working environment?"

"They want a raise!" Smith replied.

"That's it." Li Weidong nodded suddenly, and then asked: "Does Whirlpool pay workers very low wages?"

"Our workers are paid $10 an hour," Smith replied.

"Although I don't know much about the situation in Wisconsin, I think the hourly wage of $10 is not considered low, right?" Li Weidong deliberately favored Whirlpool.

Smith immediately said; "The hourly wage of $10 is certainly not low, but the union is still not satisfied. They actually demand a 20% wage increase!"

"20%? So much! This is too far off. I think even if it is a salary increase, a 3% increase is very impressive!" Li Weidong said.

A 3% salary increase was exactly what Whirlpool had in mind, and Smith immediately felt like he had found a soulmate.

So Smith opened up the conversation and began to complain to Li Weidong. The content was nothing more than how greedy the union was, how shameless the union was, and how profit-seeking the union was.

Li Weidong listened and nodded in agreement. It felt a little satisfying to watch American capitalists complain about labor unions.

After complaining for most of the day, Smith continued: "We did not agree to the union's request, so the union organized a strike. We also conducted several rounds of negotiations with the union, but the price proposed by the union was too high and we could not

Accepted.”

Li Weidong immediately said: "Mr. Smith, if the factory is shut down for one day, you will lose a lot of money, right?"

Smith nodded: "Our factory in Wisconsin has an annual output of 200,000 microwave ovens."

Li Weidong quickly calculated in his mind that the total number of public holidays and paid annual leave in the United States is about 25 days. Adding in 52 weeks of weekends, the average American works less than 240 days per year.

Calculated in this way, if the microwave oven factory is down for one day, it will have to produce more than 800 microwave ovens. Based on the ex-factory price of each microwave oven of US$400, if the microwave oven factory is down for one day, it will lose more than three hundred thousand US dollars.

"According to this calculation, Whirlpool has already lost RMB 15.6 million during the week when the microwave oven factory was shut down! Such a huge loss should make Whirlpool's top management feel heartbroken!"

Thinking of this, Li Weidong said: "Mr. Smith, I think Whirlpool should seriously consider my suggestion and move the microwave oven production line to China. This will be of great benefit to Whirlpool.

In addition to what I said before, the production cost will be reduced by 35 US dollars, and Japanese products can be driven away, by moving the production line to China, Whirlpool will no longer have to worry about greedy and shameless labor unions!"

Smith took a deep breath and said, "Mr. Li, I personally support your idea, but as I said before, our senior management is relatively conservative and they do not want to move the production line out of the United States."

Li Weidong said: "At this time, at that time, didn't you have the problem of union strikes? But now, your workers are on strike and continue to keep the microwave oven production line in the United States. Whirlpool suffers hundreds of thousands of losses every day.

Loss of US dollars.

What's more, this time will definitely not be the last strike of the union. As you said, the union is greedy. They are like a black hole. You cannot meet the union's demands. Even if Whirlpool agrees to the union this time, then next time

What? What about next time?

The union will continue to put forward new demands, more salary, more vacations, better working environment, more expensive medical insurance, separate dental insurance. They always have an excuse to ask for more from Whirlpool. Is Whirlpool willing?

Do you have to face a union strike every year?

As long as the factory and production lines remain in the United States, Whirlpool will have to face the union's endless entanglements and endless demands.

On the contrary, if Whirlpool is willing to hand over the production line to me, then the union problem can be solved once and for all! There will be no strikes, no labor negotiations, no one asking for salary increases, vacations, and improved working conditions. Whirlpool can even save a lot of money.

Pen of medical insurance!”

There is no basic medical insurance in the United States, all of which are commercial medical insurance, so the price is ridiculously expensive. Although there is medical insurance that can be used by the whole family with one insurance, the cost is more than three times that of a single insurance, and three-quarters of it is

All have to be paid by the employer.

Good companies will buy more expensive medical insurance for their employees, so that when their employees get sick, they can enjoy more reimbursements and go to better private hospitals. Those online who say that the United States has more medical services at lower prices,

It must have cost thousands of dollars a month in medical insurance.

In addition, dental insurance is not covered by medical insurance and must be purchased separately. Moreover, dental care in the United States is as expensive as in China. A tooth is costing you a car, and a tooth is costing a house.

Therefore, in the labor union negotiations, medical insurance and dental insurance are also the focus of the negotiations. The union requires the employer to provide better medical insurance, and of course the employer also hopes to save money on medical insurance to reduce expenses.

In the early 1990s, industrial automation had not yet spread to the home appliance industry. For example, the assembly of microwave ovens, just like today's electronic product OEM, requires a lot of manpower and is a labor-intensive industry. When employers use more workers, they naturally have to

Pay more for health insurance.

So when it came to saving money on medical insurance, Smith was immediately moved. For Whirlpool, this was a huge expense.

Just listen to Smith say: "Mr. Li, I will read your plan in detail. If there is a suitable opportunity, I will also mention your suggestions in the management conference room."

…

In the Whirlpool Corporation's management conference room, everyone began to discuss the strike at the Wisconsin microwave oven factory again.

Whirlpool's CEO is quite old and represents the conservative side of the company.

At this time, the CEO was saying with an unhappy face: "It's already the second week, why hasn't the strike been resolved? The board of directors is very dissatisfied, and the company's stock price has been rising in the past few trading days.

Falling! We must resolve the strike immediately and resume production at the microwave oven factory as soon as possible."

Someone immediately replied: "But the demands put forward by the union are too high, and it is impossible for us to meet their demands. If the hourly wage is increased by one dollar, each worker will spend nearly $2,000 more per year!"

Someone else said: "If it were just one factory, we could still afford this kind of salary increase. But we have dozens of factories across the United States, and I'm worried that there will be chain reactions!

For example, in Wisconsin, in addition to microwave oven factories, there are also air-conditioning factories, washing machine factories, refrigerator factories and TV factories. The unions in those factories are also waiting and watching.

If we agree to the conditions of the microwave oven factory union, then the unions in other factories will definitely put forward the same conditions. If we don't agree, they will also launch a strike!

We employ nearly 100,000 workers in dozens of factories across the United States. If each worker spends an extra $2,000 a year, that will be a price we cannot afford!"

Another person immediately said; "What's more, we will never be able to fill the union's belly. This time the union is demanding an increase of one dollar in hourly wages. If they succeed, then next time, they will ask for more! So we absolutely can't

Agree to the union’s conditions!”

The CEO frowned and said, "I know everything you are saying! But what I want is a solution, not an excuse!"

The person who spoke before replied: "I think there is only one way for now, and that is to continue to wait. Since the differences in the negotiations are so big, we will compete with the union for patience to see who can't hold on.

For us at Whirlpool, every day the microwave oven factory is shut down, it will indeed suffer hundreds of thousands of dollars in losses, but for the workers, if they don't get paid, then they will have no money to pay back the checks and loans, and they will go bankrupt.

!

So I think that as long as we hold on and never lower the conditions, over time, the workers will naturally come back to work, because they need this salary to support their families!"

The CEO shook his head: "If we fight a war of attrition, of course we can last longer, but the board of directors doesn't give me so much time. I have to be responsible to the shareholders!

If we don’t solve the strike problem, our stock will fall every day, and the board of directors will come to trouble me every day! If we continue to wait, maybe I will be fired by the board of directors before the workers return to work!"

"But if we agree to the union's request, our production costs will increase. And it may trigger a chain reaction. If other factories ask for wage increases, our stocks will fall even more," the man said.

At this time, Smith finally spoke: "I have an idea. Do you still remember what I mentioned last time, moving the microwave oven factory to China? I think it's time to seriously consider this suggestion."

"Impossible, we are an American company, and our main market is also in the United States. Rooting in the United States is the basis for our survival at Whirlpool! We must keep our products manufactured in the United States!" Some conservatives immediately objected.

"But now, our factory is paralyzed!" Smith spread his hands and continued: "The paralyzed American manufacturing is not only useless to us, but a burden! And moving the microwave oven factory to China will be harmful to us.

It’s all beneficial and harmless!”

Later, Smith reiterated the benefits of moving the factory to China, such as the production cost will be reduced by 35 US dollars, such as being able to drive Japanese brands out of the US market at low prices, such as no need to face the never-ending appetite of labor unions, such as

There is no need to pay for medical insurance for employees. In short, it is just repeating what Li Weidong said.

In fact, the last time Smith proposed this proposal, some executives were interested, but at that time, the majority were conservatives, so Smith's proposal was rejected by executives who were superstitious about American manufacturing without much discussion.

But this time is different. The strike at the microwave oven factory has been going on for more than a week. The entire microwave oven factory has been completely replaced. It can't even maintain normal production. How can we talk about Made in America?

What's more, the board of directors is constantly putting pressure on the management, asking the management to resolve the strike issue as soon as possible.

This is tantamount to hitting a snake with a bullet. The management may not care about other things, but if it cares about the board of directors, even a management dominated by conservatives must seriously consider Smith's suggestion.

Next, everyone started a new wave of discussions on Smith's suggestions.

For Whirlpool, moving its microwave oven factory to China can indeed maximize profits. However, it is also very difficult for these conservative corporate executives to abandon American manufacturing.

After discussing it for a long time, I finally came to the conclusion that moving the microwave oven factory to China does have various benefits, but I still want to continue manufacturing in the United States.

However, the big knife hanging over the head of the board of directors forced the CEO to make a decision.

The CEO coughed dryly and said, "I think this is it. Let's give the union one last chance and tell them that if they are unwilling to compromise, we will move the factory and then they will have a career!"

If the union still refuses to compromise, we will go to the Chinese to negotiate for the relocation of the production line. This plan to relocate the factory to China can be considered our Plan B!"

…

The next day, Smith came to Milwaukee and met with Taylor and other union officials. He told the union people that if the union continued to refuse to compromise, then Whirlpool would close the Milwaukee microwave oven factory and move the factory to other places, and all

workers will also lose their jobs.

This move was indeed effective, and that afternoon, there was a heated discussion within the union.

"If Whirlpool really closes the factory, won't we be unemployed? This is not possible. I still have twenty years of housing loan to pay off. If I lose my job, I will go bankrupt!"

"We are just asking for a salary increase. I think the 6% salary increase proposed by Whirlpool, and no further salary increase is allowed for two years, is a very good condition. We might as well agree to this condition first, or wait two years at the worst

Just ask for a raise!"

"That makes sense. It's better to get this 6% salary increase first than to lose your job!"

After being intimidated by Whirlpool, different voices emerged in the union.

However, some people objected: "I think Whirlpool is just bluffing. They can't close the factory! If the factory closes, how can Whirlpool make money? Are they going to give up the microwave oven business? Their losses will be even greater by then!"

"You're right. Even if Whirlpool wants to move the factory, it will be difficult to find other suitable places. In the Great Lakes region, our labor costs in Wisconsin are already relatively low. If they go to other places, the wages required by the workers

It will only get higher!”

"Yeah, Whirlpool won't move its factory to Mississippi or Louisiana! That kind of place is not suitable for building a factory!"

Mississippi and Louisiana are both relatively poor states in the United States. These two states are traditional southern agricultural states with the lowest per capita income in the United States and a relatively large African-American population.

In the early 1990s, the African-American population in these two states exceeded 30%. By 2020, the African-American population was close to 40%.

Because they are located in the south of the United States, the climate is mild and pleasant, and farming can be done almost all year round. Therefore, the agriculture in these two states is very developed, but the industrial base is relatively weak, and they are not suitable for establishing manufacturing factories.

At this moment, someone looked at Taylor and asked, "Taylor, what do you think?"

"I think it is impossible for Whirlpool to move the factory. They are just scaring us. As long as we persist, Whirlpool will be the one to compromise in the end!"

Taylor paused and then said, "Even if Whirlpool doesn't want to make money and really closes the factory, we don't have to worry about business problems. Don't forget that there is Mr. Adams in New York! He is going to move the factory soon.

Milwaukee is coming."

"Will Mr. Adams really come to Milwaukee to build a factory?" someone asked.

"Of course." Taylor nodded and continued, "Mr. Adams has already started looking for factories. As far as I know, he has found several real estate agencies and looked at more than a dozen factories, and he has already chosen one.

Three suitable places.

Even if Whirlpool's factory is really closed, we can still take the compensation, live happily for two months, go on vacation, and when we come back, we can directly work in Mr. Adams's factory. And Mr. Adams's factory, opened

But the hourly wage of $12 is higher than our current salary.

So we don’t have to worry about the factory closing at all. We will continue to fight Whirlpool until we get what we deserve. Because we still have a way out, Mr. Adams’ new factory is our plan B!”

I slept too much today, so I wrote more than 5,000 words, a two-in-one chapter. Thank you to all the parents for subscribing. Please give me a guaranteed monthly pass. Thank you for passing!