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    Labor Relations and Conflict Resolution

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    Question: Virtually all new auto plant construction by the "transplants" (BMW, Nissan, Hyundai/Kia, and Toyota) in recent years have been in right to work states. Why do foreign companies investing in the USA continue to gravitate to right-to-work states? Would unionization of transplants such as Nissan or Hyundai likely result in a reduction of foreign investment?

    Question: Describe how the Knights of Labor, the American Federation of Labor, and the Industrial Workers of the World differed in their views of efficiency, equity, and voice. How about employers? What were their views of efficiency, equity, and voice during the open shop movement? Did these views change during the period of welfare capitalism?

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    1. New auto plant constructions by the transplants namely BMW, Nissan, Hyundai/Kia, and Toyota in recent years have located their operations in right to work states. The rationale is that these transplants want to keep their fixed costs low so that their products remain competitive in the market. Right to work states have laws that disallow union security agreements, or agreements between employers and labor unions that govern the extent to which an established union can require employees' membership, payment of dues, or fees as a condition of employment.
    Unionization of transplants such as Nissan or Hyundai would reduce the competitiveness of transplants substantially. The union system makes these companies inflexible. They cannot hire whom they want and they cannot fire whom they want. High quality workers and hard workers are devalued. In a unionized system promotion by seniority is the rule. This would make the transplants uncompetitive because unions do not allow them to place people with latest technology expertise in ...

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