Friday, October 21, 2011

Piecemeal factories

One interesting fact is that in China nearly all the factories are piecemeal. The workers get paid based on their production. Those type of factories were outlawed in Europe and the United States back in the 1930's.

But there are a handful of the factories still remaining that pay employees based on piecemeal.. they were grandfathered in way back in the 1930's. At one factory in Virginia the average worker made 180,000$ a year.

But they had something like 7 times the output per worker as the pay by the hour factories.



In Britain it takes a lot of money and effort just to hire someone, and try to comply with countless regulations - and those are just hte labour regulations, which is one of dozens of regulatory agencies. Most corporations are saying why bother, and simply moving production to Asia. Not like this is a new trend, but we are starting to wake up and say, wow there is actually no jobs in our country.

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