Professional Documents
Culture Documents
and go to a third-world country to make even more money? Does the company, if the plant is "sufficiently" profitable, owe those jobs to longtime employees?
Is
it
immoral
for
a
company
to
relocate
to
a
foreign
company
to
make
more
money,
no.
I
think
the
words,
morality/immorality,
get
tossed
around
with
high
frequency
and
applied
to
companies
who
seek
larger
profits.
I
would
offer
that
the
acts
of
a
company
relocated
simply
for
larger
profits
than
what
they
have
been
earning
in
this
country
is
unethical,
but
not
immoral.
The
theory
of
owing
someone
his
or
her
job
on
the
basis
of
longevity
is
highly
debatable.
One
could
argue
that
loyal
service
should
offer
a
certain
right
to
the
job
or
even
a
percentage
of
the
company
as
a
reward
for
assisting
in
the
success
of
the
business.
However,
a
person
on
the
opposing
side
would
argue
that
a
job
is
not
promised
to
anyone
regardless
of
longevity.
Additionally,
longevity
doesnt
imply
great
work
from
said
employee.
Since
longevity
doesnt
imply
great
work,
why
should
the
employee
deserve
the
right
to
a
job
or
a
certain
percentage
of
the
company?
QUESTION: Say you own a house. Can you do whatever you want with it? Don't you have to get a permit to add a second story? Doesn't the government in fact place many restrictions on what you can and cannot do with your house (you can't, for example, establish a lead smelting plant in your backyard)? You cant hire illegal immigrants to work on your property. And so on. Why not place tighter restrictions on a business ability to move operations outside the country?
It is a good theory to place tighter restrictions on businesses. The government police the actions of citizens in regards to their private property as the case states, so why not businesses who would have a larger impact on society if they relocated factories out of the country. As I am sure people may mention, political figures may benefit from larger profits of businesses that relocate as they may have stock in said companies. I do not believe that this country could place tighter restrictions on companies as they do its citizens. Because companies have the resources and financial ability to persuade the government not to pass any legislation against such restrictions, companies will be able to relocate without issue.
QUESTION: One argument one of your authors this week gives is this: EAW benefits the employees just as much as the company. In the free enterprise system, so he says, when one company leaves a city another one is likely to come in (especially as the factory/office infrastructure is likely more-orless ready). So the employees who've been let go will likely find opportunity at the new company. What do you think of this argument?
I think that statement of opportunities still being present if the company leaves a State is relative to what State they leave and also how strong/weak the economy of the country is in when they leave. For instance, when the majority of GM left Michigan, other companies were not racing to establish a new hold on Michigans economy. Jobs were not available in other companies and Michigan has suffered a loss in many aspects, not only manufacturing, but also transportation, engineering, construction, and even education. I think the argument is as valid as it once was and that the reality of companies relocating outside of the U.S. is quite detrimental to the future of our economy.
QUESTION: It's typical that governments offer significant incentives to companies to stay or locate in their cities. Pfizer, with a large facility in Ann Arbor, announced some years ago that they were going to build a very large research facility. But where? It amounted to a call to local governments to begin the bidding--how much would they offer to the company in order to come there, or stay there in the case of Ann Arbor. Ann Arbor offered them huge concessions on property taxes and other items in order to win the bidding. That's our tax dollars being given to the company, the employees' tax dollars being given. This creates a moral contract of sorts between the company and the city. Now it's not simply a case of an owner and her private property. The owner hasn't acted autonomously, the owner instead has combined, in a sense, with the city. I would say in this case the company is then not free to move when it wishes. For how long this obligation exists is more difficult to say. Of course Pfizer left the city several years ago. I have not followed the situation closely, but I have read nothing about the company returning any of the tax incentives given in that first decade (which were predicated on the company remaining in the city for a much longer period. Should these arrangements with states of cities affect a companys obligation to its workers?
Most definitely; the company should have an obligation to the city or State if they agree to stay for a certain period of time in order to receive any financial incentives. The obligation is not just a handshake deal, but a legal agreement with substantial financial incentives tied to the agreement. Why would the city and State not sue over breach of contract? They would definitely had to have signed some legal contract as the city had to offer a formal bid and Pfizer need documentation of the deal to satisfy their own legal obligations to shareholders and the IRS. Too many companies take advantage of financial incentives and after awhile, they hold additional bids to cities with the agenda to relocate in hopes to receive additional financial savings to increase their bottom line.