My last sentence was just to show that anyone can make a flippant remark drawn out of thin air.
However, those building Astons/Rollers/Bentleys are hardly retrained ex-farmers putting together mass produced cars. Then again, nor are the Hungarians ex-farmers either. Hungary has reputed to have one of the highest concentrations of highly educated and skilled workers in Europe (although the last government has nicely put paid to that with their policy of investing public money on filling their own pockets rather than education). Labour costs are much lower in countries Romania, Poland, Russia, Ukraine, and the Balkan states, but it is no coincidence that manufacturers are not fighting each other to relocate there. Audi reportedly looked at 180 locations before choosing Hungary.
And it's not just the manufacture industry that is using Hungarian labour. Many of the largest pharmaceutical companies, such as GlaxoSmithKline, have they European research centres based in Hungary.
Just because labour is cheap it does not automatically follow that they must be unskilled. Undoubtedly, many of the employees of Philips and other home entertainment manufacturers (including Microsoft and the Xbox) do use unskilled labour. But I haven't heard of problems with their quality of workmanship.
I think it is very sad that companies back stab practically their own kith and kin for a quick buck. But that's market forces for you. And it doesn't help when, even being one of the highest paid workers in the world, your workers decide to strike.
Mercedes Benz did a bit of a Marks and Spencers with their C-Class. Not only did they cut costs by using cheaper materials (they claim because most of it is recycled - bull) but then go and have them manufactured in South Africa. I am very surprised that move hasn't hurt them more.
Manufacturers will continue to move east until labour costs rise to eliminate the benefits. If governments continue to fight against it (like they have with the expansion of the EU) it will just lengthen this process. Just look at how quickly countries such as Portugal and Ireland have strengthened their economies since joining the EU. The quicker other countries are allowed to do the same, the shorter the period of benefit for manufacturers, therefore the less likely that they go ahead with relocating. Nice in theory.
However, those building Astons/Rollers/Bentleys are hardly retrained ex-farmers putting together mass produced cars. Then again, nor are the Hungarians ex-farmers either. Hungary has reputed to have one of the highest concentrations of highly educated and skilled workers in Europe (although the last government has nicely put paid to that with their policy of investing public money on filling their own pockets rather than education). Labour costs are much lower in countries Romania, Poland, Russia, Ukraine, and the Balkan states, but it is no coincidence that manufacturers are not fighting each other to relocate there. Audi reportedly looked at 180 locations before choosing Hungary.
And it's not just the manufacture industry that is using Hungarian labour. Many of the largest pharmaceutical companies, such as GlaxoSmithKline, have they European research centres based in Hungary.
Just because labour is cheap it does not automatically follow that they must be unskilled. Undoubtedly, many of the employees of Philips and other home entertainment manufacturers (including Microsoft and the Xbox) do use unskilled labour. But I haven't heard of problems with their quality of workmanship.
I think it is very sad that companies back stab practically their own kith and kin for a quick buck. But that's market forces for you. And it doesn't help when, even being one of the highest paid workers in the world, your workers decide to strike.
Mercedes Benz did a bit of a Marks and Spencers with their C-Class. Not only did they cut costs by using cheaper materials (they claim because most of it is recycled - bull) but then go and have them manufactured in South Africa. I am very surprised that move hasn't hurt them more.
Manufacturers will continue to move east until labour costs rise to eliminate the benefits. If governments continue to fight against it (like they have with the expansion of the EU) it will just lengthen this process. Just look at how quickly countries such as Portugal and Ireland have strengthened their economies since joining the EU. The quicker other countries are allowed to do the same, the shorter the period of benefit for manufacturers, therefore the less likely that they go ahead with relocating. Nice in theory.