U.S. Labor: Satisfying Foreign Investors’ Needs

Source: Steve Stackhouse-Kaelble, Area Development, Location USA, 2015

Although the labor environment varies from state to state, foreign companies choosing a U.S. location are finding competitive wage rates, quality training resources, and workers eager to join their labor forces….

… Unionization and Right-to-Work Laws
That understanding begins with the acknowledgment that the United States is a collection of 50 states, with widely varying characteristics and regulatory environments. That’s not a bad thing, of course, because global site selectors have just as widely varying requirements. Consider the subject of unionization. “Some want to have an open shop, some like to have unions, and some are neutral and have to bring that neutrality here,” Thuston says….

….“Right-to-work” laws tend to drive down unionization rates, which may in turn lead to lower wage rates. Be that as it may, cheaper labor isn’t everything, he says. “What companies are looking for is not necessarily the lowest labor cost, but dependability and the capability of delivering quality.”
Lewin adds that while many companies — including many of the non-U.S. automakers that have sought U.S. sites in recent years — instinctively seek to avoid unionization, others feel less threatened by organized labor. “You can run a unionized operation and do very well in business. In some industries the highest-performing companies are highly unionized.” …