Spiderman, I think you missed my point entirely. Bear with me here, as this is a bit long, but I'll give you my own experience with how wonderful we make lives for people in other countries.
I would love it if the entire world could enjoy the life we have here in the US. Without a doubt, that would be a great step in the direction of a perfect world.
I was working as plant manager for a company employing 374 factory workers and 38 office personnel. This company was listed in Nasdaq at around $12 per share. There were three major stockholders. One controlled the lion's share of the company with about 40%, and the other two held a combined 25%, while the remaining 35% or so was held amongst several shareholders.
Once the company president was financially able to set his plan in motion, two things began to happen at once. First, he began to hunt for a location that would be prime for a new plant to be built. At the same time, production was suddenly slowed to a near halt. When orders were made, clients were told that we were backed up, and their order could not be completed for 2-3 months.
In reality, those orders were simply piling up and production had been dropped from 3500 units per day to 1000 units per day. Naturally, this panicked the stockholders, and the price of the stock began to fall. Once the shares reached $8, an option was opened to the majority stockholder, who also happened to be the President of the company to initiate a mandatory buy-back program. Whether you wanted to sell or not, the company bought your stock back at $8 per share, and your interest in the company was gone. One man suddenly had the entire company in his pocket, and was able to do with it as he pleased. Soon after, he resigned as President, and a puppet was put in his place.
Not long after the company buy-back was completed, one of our engineers returned from China with the announcement that he'd found a suitable site for an overseas plant. The building was already erected, and we simply had to purchase it and equip it.
A "new" company was formed, and purchased this building from the Chinese government. Soon after, it was equipped and 3 engineers, myself, and the head of the quality control department were all sent to China to train the new employees.
Back home in the States, production was increased from 1000 units per day, to an unheard of 5000 units per day over the course of 2 weeks. Our plant had never gone over 3800 units per day, and they never actually made the 5000 unit goal. Nobody really believed they would in the first place, but that was part of the plan all along it seems.
Upon arriving at the new building in China, we began to train the employees on how to do their jobs. My main function was to train the plant manager there on how to do every job in the plant. What astounded me the most, was it seemed that they were only doing basic assembly and only welding half of the product before boxing it to be shipped on container ships back to the States. I didn't understand why they were only doing half the job, nor did I understand why full assembly and paint weren't being done before the product was shipped. I was soon to find out, though.
When I got back home after a month in China making sure this new company got off the ground, I found out where those boxes were going. They were coming right back to our plant in the US. When we got the boxes in, we stored them in a warehouse the company had purchased on the far side of town. Not one box was sent to the plant for over a month. Not one word was spoken to the employees about those boxes.
By this time, the employees were working 12-16 hours a day, depending on the department. They were making the 5000 unit quota, but barely. When these people showed up for work at 5 am, they looked dead. When they left at anywhere between 5:30 pm and 9:30 pm, you'd believe that they'd never come back. But, come 5 am the next morning, in they would come, looking weary and awful, but they were there.
Then came the meetings. Department by department, the big brass came down and made the announcement that they could not continue on paying out 4-8 hours of overtime per day per employee to make production. Keep in mind, the production numbers they were forcing on us were caused by the back orders created during the manufactured slow-down of work when the majority owner was staging the buy-back, combined with current orders. It was announced that the company had "found" another company in China that was willing to perform pre-assembly work for us at a reasonable cost, and we could all go back to working 8 hour days again. Naturally, the spin was placed on this tid bit of info that the Chinese company was found after an exhaustive search done in both the interest of the company to save the overtime pay and the employees to keep them from killing themselves to meet current demands, which I knew to be total BS.
Of course, this wouldn't all be that bad, except the pay was based on piece work. Once the first shipment of pre-assembled parts arrived (from across town), new time studies had to be performed. With half the assembly done, this should have changed the rates of production for top pay by approximately 50%, but the company changed it by 75% across the board based on one time study of one piece. When the employees complained, the answer was "You don't like it? Get out." So much for the act of doing things in appreciation of the employees. At that point, the company made no bones about it. You don't like the new policies, get yourself a new job. The company did allow one meeting with the top brass, each department supervisor, myself and the production manager, and a representative of each department present. When the employee reps aired their grievances about the new time studies, or more accurately, lack thereof, the company rep had one response. I'll never forget this as long as I live: "You know, you guys don't seem to realize that you don't have to work here. We don't have to keep this plant open. The plant in China is already doing half the work, so what makes you think they can't do it all? We don't want to pay what we're paying you now, but we will if you'll do your jobs and quit bitching about the pay. Otherwise, we'll turn this plant into a warehouse and pay minimum wage for dockhands to store the complete finished product built in China."
With that message, the reps returned to their departments, and it was suddenly apparent that they were going to see these impossible production numbers for the duration of their employment there. Plant-wide, pay dropped from an average of $13 per hour to around $9 which is very close to the base pay of $8.50. Not only did the pay decrease, but the production numbers increased from 3500-3800 to 6200 units per day when I left the company to start my own business.
Doing the math: Pay drops an average of $4 per hour. That's $160 per week, $640 per month, $8160 per year on a 51 week year as there is one week of shut down for mandatory audit. I'd say that's a pretty MAJOR dip in lifestyle to go from around $26,000 per year to around $18,000.
What did the Chinese workers gain? Well, that's the best part. I'm sure that the 374 people that work the floor of that plant will be glad to know that they improved the lives of those Chinese to the grand old tune of $2 per day, 2 meals per day consisting of a bowl of rice some kind of meat that tasted horrible to me, and a cup of tea that smelled like seaweed. If they want anything else to eat, they pay for it themselves off of a lunch wagon outside the plant, and it's not cheap when you only make $2 per day. They sleep IN THE PLANT in 4 large rooms with cots seperated by paper curtains that remind me of cubicles here. There is a community shower room that appears to be able to serve 20 at a time, and a community bathroom that is able to seat 10.
So, you see, I fail to see the trade off here. People here were sent down near the poverty level, and some below it if they had a couple of kids. Losing almost 1/3 of your annual salary to give those Chinese workers such a wonderful life as that....gee.
Now, let me ask you. Would you give up 1/3 of what you earn this year so the Ugandan can have his pair of shoes? I've seen similar stories from people involving jobs moving to Mexico. In the case of the high-end lawn furniture factory I was working for, I personally heard the owner and the company president joking that the only reason they didn't follow through with their threat to send all the jobs to China is because they would have to change a 30 year old company slogan or run the risk of being sued for false advertisement. What is the slogan? To this day it still slaps me in the face every time I drive by it.....The Pride of American Quality.