Well the sad demise of Ryton car plant in th euK announced yesterday was another plant going away from our country.
The reason ? It had the poorest productivity apparently of the other plants shortlisted for closure so it was the obvious choice .
The Ford plant at Dagenham was anounced the same when it announced its closure .
I dont know if the situation is the same , but could be .
Ford announced that Dagenham was going onto a 1 shift system about 2 years before its final statement. There was talk about how this would improve productivity by so doing . This was so obviously hocum , that I remembered it and expected it to shut , citing poor productivity . All manufacturing works best productivity wise by working as many hours/day as possible [ the capital employed becomes diluted] . Sure enough it did.
I havent heard anything about Ryton prior to this , but wonder if it , too , went onto a shorter working week [ in terms of hrs/day utilised] before this announcement .
In any case , it is very easy for a multi national company to load costs if it wishes [ and routinely does in terms of transferring profits from hig htax to low tax countries] so productivity arguments could easily be spurious
Wednesday, April 19, 2006
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