Monday, June 13, 2011

Must Be The New Math

How does a company decrease cost and increase efficiency without sacrificing jobs? For starters, reduce and consolidate your products. As example, which are many, Colgate-Palmolive sells Palmolive dish soap in several sizes; they also sell a 50 ounce refill, obviously for refilling the other sizes. Here's the kicker:  the larger 50 ounce cost less than the others, yet functions similarly and just as easily. With a convenient handle even. Why not get rid of all other sizes and simply sell the 50 ounce? Perhaps increase its price a bit to compensate. Not only would such a move decrease the cost of shipping (packaging, trucking, etc) the various sized products to stores, it would make the manufacturing more efficient. None of which would sacrifice a single job; everyone involved – from the employee overseeing production, the trucker transporting it and the worker at another company who produced the packaging – would still be needed in their current roles.

After all, Henry Ford’s business model for manufacturing the Model T didn’t have aesthetics in mind; it was about increased efficiency and lower costs. He was even ahead of his time as a “green” company, recycling unused materials into the development of Ford Charcoal, better known today as Kingsford. Would seem the development of "clean" coal technology, a goal since the 1980s, goes hand-in-hand with re-embracing Ford's other business ideas. Ideas from an era when “Made In America” wasn’t a hyperbolic punch line.

I digress...

Merger With Continental Costing 1,500 United Jobs In Houston (Houston Chronicle)

1,300 More Jobs Coming To Chicago On Wings Of United Airlines Merger (Chicago Tribune)

Certainly, there can be bipartisan agreement that this is not the definition of job creation. By my public school math, the United-Continental merger actually will result in a net loss of 200 jobs; the "new" jobs are simply relocation of existent ones.

Unemployment Benefits Little Changed For 2nd Straight Week As Economy Generates Less Hiring (Washington Post)

President Obama’s Phony Accounting On The Auto Industry Bailout (Washington Post)

Editorial: Obama's Job-Killing Jobs Council (Investors Business Daily)

If such trends continue, unemployment will reach 100% and the country will be insolvent in no time. Enjoy your work week…that is, if you’re one of the lucky ones (i.e. suckers) with a job.
©2011 Steve Sagarra

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