A Modern Parable

[TriniCana]

A Japanese company ( Toyota ) and an American  company (Ford Motors) decided to have a canoe race on the Missouri  River   Both teams practiced long and hard to reach their peak  performance before the race.

On the big day, the Japanese won by a mile.

The Americans, very discouraged and depressed, decided to investigate the reason for the crushing defeat.  A management team made up of senior management was formed to investigate and recommend appropriate action.

Their conclusion was the Japanese had 8 people rowing and 1 person steering, while the American team had 7 people steering and 2 people rowing.

Feeling a deeper study was in order; American management hired a consulting company and paid them a large amount of money for a second opinion.

They advised, of course, that too many people were steering the boat, while not enough people were rowing.

Not sure of how to utilize that information,  but wanting to prevent another loss to the Japanese, the rowing team's  management structure was totally reorganized to 4 steering supervisors,  2 area steering superintendents and 1 assistant superintendent steering  manager.

They also implemented a new performance system that would give the 2 people rowing the boat greater incentive to work harder.  It was called the 'Rowing Team Quality First Program,' with meetings, dinners and free pens for the rowers.  There was discussion of getting new paddles, canoes and other equipment, extra vacation days for practices and bonuses.  The pension program was trimmed to 'equal the competition' and some of the resultant savings were channeled into morale boosting programs and teamwork posters.

The next year the Japanese won by two miles.

Humiliated, the American management laid-off one rower, halted development of a new canoe, sold all the paddles, and canceled all capital investments for new equipment.  The money saved was distributed to the Senior Executives as bonuses.

The next year, try as he might, the lone designated rower was unable to even finish the race (having no paddles,) so he was laid off for unacceptable performance, all canoe equipment was sold and the next year's racing team was out-sourced to India.

Sadly, the End.

Here's something else to think about: Ford has spent the last thirty years moving all its factories out of the US , claiming they can't make money paying American wages.

TOYOTA has spent the last thirty years building more than a dozen plants inside the US .  The last quarter's results:

TOYOTA makes 4 billion in profits while Ford racked up 9 billion in losses.

Ford folks are still scratching their heads, and collecting bonuses...

IF  THIS WEREN'T SO TRUE IT MIGHT BE FUNNY

[Dutty]

Yuh miss the part about the UAW demanding gold plated paddles

[trinindian]

Yuh miss the part about the UAW demanding gold plated paddles

This is one of the major reasons for the failure of the American manufacturing industry.

Henry Ford the father of the American automobile is just one of the manufactures that notoriously abused their workers. These manufactures made huge profits at the expense of their workers. At least until the advent of unions such as the UAW who held companies hostage until the secured significant benefits for their employees. Given the profits of the 60s and 70s companies and the increased purchasing power of the baby boomers manufactures were able to eat these add costs and still make a profit.  Presently benefits secured can result in an initial cost 0f 3000 before the first part is stamped which the company add to the final cost of the car.  Japanese companies are not locked in to these benefits and therefore their markups are lower. As was demonstrated in the recent union GM negotiations, for companies to remain viable unions must renegotiated their benefits package. Having worked in an union and non union plants it is very frustrating as an engineer I am not allowed to use tools because I am not part of the Union, significant time can be spent waiting for an union employee. Unfortunately it appears that current manufactures are being made to paid for the wrong doing of their founders. The union has its place and hopefully the precedent set by GM and the Union is foretelling of changes to come. Changes need if companies are to remain successful.

What I am saying is maybe only union employees can be rowers.

[ribbit]

Yuh miss the part about the UAW demanding gold plated paddles

This is one of the major reasons for the failure of the American manufacturing industry.

Henry Ford the father of the American automobile is just one of the manufactures that notoriously abused their workers. These manufactures made huge profits at the expense of their workers. At least until the advent of unions such as the UAW who held companies hostage until the secured significant benefits for their employees. Given the profits of the 60s and 70s companies and the increased purchasing power of the baby boomers manufactures were able to eat these add costs and still make a profit.  Presently benefits secured can result in an initial cost 0f 3000 before the first part is stamped which the company add to the final cost of the car.  Japanese companies are not locked in to these benefits and therefore their markups are lower. As was demonstrated in the recent union GM negotiations, for companies to remain viable unions must renegotiated their benefits package. Having worked in an union and non union plants it is very frustrating as an engineer I am not allowed to use tools because I am not part of the Union, significant time can be spent waiting for an union employee. Unfortunately it appears that current manufactures are being made to paid for the wrong doing of their founders. The union has its place and hopefully the precedent set by GM and the Union is foretelling of changes to come. Changes need if companies are to remain successful.

What I am saying is maybe only union employees can be rowers.

trinindian, i've heard different. henry ford's legacy is not the assembly line (as a friend told me) - it was paying wages high enough that his workers could afford the cars they were producing. ford ushered in the era of high wage manufacturing jobs.

[trinindian]

compared to other industries of the time ford paid more yes. But workers were taken still taken advantage off.

[truetrini]

steups

all shit talk.

thing is japanese cars jes better made and more people buy dem.

better gas mileage, easier to modify, easier to repair, cheaper parts, better performance.

de japs copy de yanks and improve on everything american, maybe is time de yanks follow de japs?

[trinindian]

steups

all shit talk.

thing is japanese cars jes better made and more people buy dem.

better gas mileage, easier to modify, easier to repair, cheaper parts, better performance.

de japs copy de yanks and improve on everything american, maybe is time de yanks follow de japs?

If only it was as simple as this.

[capodetutticapi]

steups

all shit talk.

thing is japanese cars jes better made and more people buy dem.

better gas mileage, easier to modify, easier to repair, cheaper parts, better performance.

de japs copy de yanks and improve on everything american, maybe is time de yanks follow de japs?

you know yankee to follow anybody.

[trinindian]

Pension Debts in America   

[pecan]

Companies deserve the unions they get

[ribbit]

Pension Debts in America   

thanks for the reference. here's a talk by lowenstein on pension debts.