The graveyard shift is back from the dead

In the past, outsourcing to Asia was an easy way to save costs. Employees were willing to work more hours for less money; with an abundance of cheap labour, production was on the rise, especially after night shifts were phased out in America. Now, Asian labour is becoming more of a headache than an asset. Tens of thousands of Korean auto workers went on strike in 2012, causing major disruptions in production and a 30% decrease in exports to North America and domestic sales for Hyundai, Kia and GM Korea. The Korean Metal Workers Union eventually settled a deal that entitled the auto workers to pay raises and the promise to phase out the night shift. This massive change in the Asian workforce comes simultaneously with American auto companies finding their sales finally rebounding. Since the global recession, GM and others shut down factories and cut back on production hours. This rebound period is forcing these companies to increase production hours to keep up with the new demand; as the night shift leaves Asia, it arrives back in America. Many American workers are realizing that it’s better to work the night shift than not work at all, and now Asian auto workers find their hours being worked by American people. The American graveyard shift is back from the dead, and outsourced car companies are coming back.

 

http://www.economist.com/node/21562964

http://www.wsws.org/en/articles/2012/10/kore-o30.html

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