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Talent moves to the best companies to work for.  Companies move to areas most conducive to business.  It might take a decade or two, but eventually companies figure out where those places are.

Why does every company incorporate in Delaware?  There's a benefit in Delaware they can't get elsewhere.Temp_carusel1 Why does every auto manufacturer that is pondering a new plant build their shining new facility on the hill in the South?  There's a benefit they can't get elsewhere.

I've never been to Delaware, but I live in the Southeast. The reason car companies build their plants here is pretty obvious.  We've got affordable labor, that for the most part, doesn't want to belong to a union.

Where else can you go and have the ability to bring 500 temps into an auto production line to provide just-in-time labor with no commitment to hire those 500 workers full-time?  More on recent moves at the Mercedes plant in Vance, AL (an hour from my house) from the Birmingham News:

"Mercedes-Benz is expanding its operations in Alabama, with a bigger body shop that helps solidify the future of the Vance auto factory, as well as plans to hire up to 500 temporary workers to match the pace of rising vehicle demand.

The German automaker held a grand opening Thursday for a $150 million addition to the plant's body shop, which will be used to launch the next-generation of the M-Class SUV next year, along with other future products.

Officials also used the occasion to announce plans to add 450 to 500 temporary workers across the plant over the coming months. Mercedes will contract with an agency to supply the workers, and ads for the new jobs will go out in September.

The news is a sharp turnaround from the situation at the plant last year, when a global industry downturn forced the automaker to slash production and put employees on four-day workweeks. Part of the cutbacks included the elimination of temporary jobs and buyouts among permanent employees, bringing the existing work force down to about 2,800 people."

It's obviously a good deal for Mercedes, and I'm going to go out on a limb and say that it's an unbelievable opportunity in this economy for the 500 temps, many of whom will be picked up full-time at some point in the future by Mercedes based on their...wait for it... performance.

Think it's unfair manipulation?  Do a poll of the 500 and ask them the following question: Would you rather temp now and have a shot at a full-time Mercedes position ($25-35 per hour), or be hired full-time day one for the wages that are currently being offered by the GM/UAW combo via the two-tiered wage agreement that was part of the last collective bargaining agreement ($14 per hour)?

Advantage: Alabama.  Roll Tide.

Comments

akaBruno

That plant also offers a great tour. Brought my students there several times when I taught at Miss. State

Beth_TYBRIN

Great post, Kris! And ROLL TIDE! =)

A. B. Robinson, Jr

Very well stated - The competitive market revealing itself. Thanks.

Eric Guess

It's up to the workers now! While Mercedes has the advantage of opting out of hiring any of these folks full time, the temps have the ball in their hand to earn their way to a full time spot, spike the automotive industry and boost the economy of their town, state and country. ahhh, the big picture

Fernan Sanchez

Now I know why their are so many auto manufacturer on Hill in the South. I always though it would be more benefit for the company to have their manufacturing station close to the city. Thanks Kris for this wonderful post.

Ella Starr

How wonderful that you talk about what is a good deal for Mercedes and the economy. I am buying a Mercedes Benz this fall. I will also find a good Mercedes Benz mechanic shop.

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