Look closer? You haven't looked at all. Unions are, at best, tangentially related to outsoucing, so your premise is false.

Unlike your cut and paste dittohead TV sound bite opinions, some people have actually taken the time to understand this situation. If you understood anything about the subject, you would not have chosen such a poor example. Autos are most often assmbled in their destination market. US auto companies are not bringing cars to the US from the third world, and anyone that tells you that is an idiot. Demand is so high in most third world markets that there is a multi-year waiting list for cars. Further, nobody is putting tape on chassis as soft automation devices (robots to the non-technical) now accomplish close to 100% of all adhesive application.

So, since your examply is now shot full of gaping holes, why not have a quick look at the real issues?

Wages: While wages are much lower in the third world, however productivity is similarly lower. Result, no net gain. Labor is worth what you pay for it as any manager with international experience knows.

Management: Few US managers have any training or experience in how to run a successful manufacturing operation, so they have no idea how to control either their processes or costs. Most would be at the mercy of low level managers and consultants when it came to making decisions regarding capital equipment, i.e. machinery. It is very common for them, after they have screwed it up, to throw up their hands and outsource.

Currency: Several important third world currencies are valued artificially, resulting in substantial trade advantage. The US government has done little about this in recent years.

Shipping time/work in process: Shipping time from overseas plants is measured in weeks, and during that time, a company has their capital invested in the work in process or finished goods in transit. As anti-terrorist security improves at ports of entry, there will be further delays for inspection. Most people don't realize that this has not yet commenced.

Accounting: The accounting fad de jour is to transfer fixed cost overhead to the other side of the balance sheet by using contract manufacturers. While eliminating fixed costs and in some cases some liability exposure. While the advantages are, the costly disadvantages are not. They include loss of process control, loss of quality control, potential loss of proprietary information, long delays on getting engineering changes into the finished product, and loss of control over delivery schedules which requires a massive inventory as opposed to just-in-time manufacturing. Common requirments such as material tracability are next to impossible. Add to this the fact that intellectual property laws in places like China and India are either non-existent or not enforced, and you can pretty much rest assured that any innovation you come with will be copied before you receive the first shipment.

The reasons for outsourcing have little to do with unions and wages, and everything to do with icompetent management. In the end it is simply a fad, and lemming managers are following the leader. When we see German, Japanese, UK, French and recently Chinese companies buying plants in the US, are we to conclude that they are stupid?

If we take a single automotive part, say the camshaft, how would you explain Tyssen Krup investing $500 million in a 2nd Danville, IL plant, Canadian company Linemar buying a plant in Michigan, and Chinese company ITM buying a plant in Michigan? What about the wages, the unions, don't they know what they are doing......?

Before you post shallow opinions based on little or no research, try reading a book and learning something.

oc