Investor That Can See The Future

Chapter 155

The financial crisis that began in the US in 2008 hit the US economy directly.

In the process of recovery, financial and IT companies grew significantly, but the manufacturing industry did not benefit much.

As a result, dissatisfaction among the white working class was built up, which became the background for Ronald’s election.

From the days of his candidacy, Ronald has had a cause for the American worker, and we built a factory in the Rust Belt to make his promise a reality.

CNN and NBC, which Ronald calls so-called Fake News, are desperate to somehow find a flaw in Ronald, and are also very interested in this Carlos wage agreement.

Ronald and I are in the same boat. If we put any pressure on the union, we will immediately send out offensive articles.

In a way that the company that supported Ronald by saying it would create jobs for American workers actually oppresses the workers.

As a result, it was difficult for us to respond strongly against the union. The union knows that too, so they bring up the general strike and put pressure on us.

I have no intention of oppressing the union, but I have no intention of accepting unreasonable demands as it is.

If you start being dragged around by the union, there is no law that says you shouldn’t look like an idiot. Eunsung Motors has overseas factories, but we have all our factories in the US. Therefore, you should negotiate with principle rather than immediate profit or loss.

In a way, it’s a good thing. If the problem occurred at a time when sales volume increased after the new car was released, it would have been more difficult to respond.

Conversely, now is the best time to negotiate with the union, when the sales network has collapsed and sales have plummeted.

Dennis crossed his arms and looked at me with a menacing look. I could see thick drops of sweat running down my shiny, bald hair.

You must have been a little confused. You probably didn’t know I was going to come out like that if I want to go on strike.

The Rock-like union member Michael, sitting to the left of Dennis, opened his mouth.

“Are you really okay with a strike?”

I shrugged.

“Of course it’s not okay. If production is stopped while sales are already plummeting, the company could go bankrupt.”

They are well aware that the company is currently running a huge loss.

If it were a silver car, it would never go bankrupt even if it went on strike all year round, but Karos is a different story. If the deficit widens and no additional funds come in, it could really go bankrupt.

Dennis said in an angry voice.

“Isn’t the situation like this because the management was wrong? Do you know how much suffering the workers are suffering from poor management?”

I can fully sympathize with that sentiment.

Although Ronald is implementing policies to foster manufacturing, such as repairing various free trade agreements, there are still many high-quality manufacturing jobs.

If the company goes down, it will be almost impossible for workers in Karos to find better jobs than they do now.

I leaned forward and said.

“First, I promise you one thing. Even if the company goes bankrupt, we will not lay off a single worker until then.”

Workers depend on their wages for their livelihood.

Losing a job is like a death sentence for some. That is why workers occupied the factory and held a siege during the layoffs of Cheongryong Motors.

If you think about it, the Korean auto unions, including the Eunsung Motors union, were not as strong as they used to be. However, the 1997 IMF crisis completely changed labor-management relations.

At that time, in the name of restructuring, workers who had worked for the company for decades were driven to the streets in an instant.

The workers who barely survived witnessed with their own eyes how their seniors and colleagues were being cut. From this point on, the auto union began to fight for the profits that they could obtain right away, rather than thinking about the company’s management situation.

In other words, all the problems started with the dismissal.

“My father ran an automotive supplier. Although it was a small company with few employees, it did not lay off a single employee until closing. And that was his father’s greatest pride. No matter how hard it is, you can’t just abandon your family, can you?”

At my words, the union members’ expressions softened slightly.

Daryl said calmly, as if persuading.

“This is a difficult time. I think there will be great concerns about the future of the company due to the decrease in sales volume. Currently, we are doing our best to develop a new car, aiming to launch it before the end of the year. At that time, sales will also recover.”

“The dealers have already turned their backs on them and the sales network has collapsed, so how are you going to restore sales?”

I asked him.

“Then, did the car sell well when the sales network was intact?”

Dennis didn’t answer easily.

This is also because in the past, they had been selling sparingly while barely avoiding the loss by reducing the car models and raising the margins of dealers.

How long could that condition last?

“Still, things are better than they are now. Do you know how many production lines are currently stopped?”

“I know. I checked it out before I came here.”

When the production line stops, workers have nothing to do. They are currently undergoing vocational training conducted by the company.

I don’t know if you’d think it would be better if you didn’t work and get an education… … You can’t help but feel anxious about when you might get fired.

“No need to worry too much. The new car will be sold directly in the future.”

“How do you mean?”

“On the Internet. In a world where everything is purchased online, what can’t be done with a car?”

Dennis had an exasperated expression on his face.

“Do you think it would be as easy as that?”

“Nicola does it too, and there’s nothing we can’t do either.”

The reason Nikola was able to sell directly without going through a dealer from the beginning was because of the differentiated selling point of electric vehicles.

We also have sales points that can clearly differentiate us.

“As you know, Karos started out as a company developing autonomous driving software. And we will launch a new car equipped with that technology. We are the only company that produces Level 4 autonomous vehicles. If we can provide that value to our customers, wouldn’t we be able to sell it without going through a dealer?”

In this way, our profit will increase as much as the margin the dealer takes.

“My goal is simple. Developing great cars, making them in the US, and selling them all over the world. The automobile industry is changing rapidly. Scandinavian countries have pledged to ban the sale of internal combustion locomotives within 10 years, and all companies are spurring the development of future vehicles. We have to move ahead of that.”

The new car to be launched this time is the first and last internal combustion engine car developed by Karos.

All new factories currently under construction are being built as electric vehicle factories, and existing factories are also expected to be converted into electric vehicle factories in the long term.

Even though they are the same car, there is a big difference between the internal combustion engine and electric vehicles in their production methods.

“The number of parts for an internal combustion engine vehicle is 30,000, but the number of parts for an electric vehicle is only one-third. There is no engine and no transmission. As there are fewer parts, the assembly process will be reduced, and the number of workers working in the factory will be reduced by more than half.”

This is not just an automobile factory problem. Due to the 4th industrial revolution and the development of technology, quality manufacturing jobs are on the decline all over the world.

“If we want to keep our current employment, we have to make more cars. To do that, union cooperation is essential.”

said Ross, a union member who looks like Brook Lesnar.

“It doesn’t matter what the workers’ wages or jobs are, don’t you just want to make money?”

“Stop it, Ross.”

Perhaps he thought it was harsh, Dennis stopped him.

I nodded.

“Yes. I’m an investor, and I love money. The reason I invested a huge amount in Karos is for money, not philanthropy. However, I have no intention of diverting the money that Karos has earned to OTK Company. All the money earned from the new car will be invested in electric vehicles. So we’ll build more factories and hire more Americans. And we plan to distribute the benefits evenly not only to you but also to the workers of our partner companies. You’ll remember President Ronald’s speech here in Detroit during the presidential election. I will be happy to help create jobs in America.”

At my words, the union members put on a subtle expression.

A union is an interest group for workers belonging to a union. Even if the company hires more manpower and takes care of workers from subcontractors, it does not mean that the profits will go to those who are currently affiliated with the union.

However, it would be difficult to say that only their wages should be raised, as other workers don’t care what happens to them.

The reason people criticize the silver-sex union is not because they are paid high wages.

There are a number of jobs with higher salaries, such as IT and finance. Isn’t there a law that says that automakers must receive lower salaries than them?

The problem is that Eunsung Cha’s union only fights for the interests of regular workers at Eunsung Cha. As the wage increase and welfare benefits increased, the management felt a strong pressure to increase the number of regular workers.

As a result, Eunsung Motors no longer built factories in Korea and did not increase regular employment. Instead, they built factories abroad and hired non-regular and dispatched workers.

Temporary workers and dispatched workers earned only a third of the wages of regular workers, even if they did the same job. The wage gap with the workers of subcontractors continued to widen. From a different perspective, it means that they are squeezing the wages of other workers in order to raise the wages of the union members.

Dennis shook his head.

“Can the company hold out until then? Where is the guarantee that the plant will not be shut down if things don’t go as planned?”

I just cut it and said

“We guarantee it.”

The union members’ eyes turned to me all at once.

“If necessary, the OTK Company will issue bonds to provide funding. Other than that, I will do anything to protect the company.”

Strictly speaking, I am the 96% majority shareholder, not the management of Karos. He is also a partner who owns a research institute and a battery company in cooperation with Karos, and a creditor to finance it.

When I expressed my clear resolve, the union members did not say anything more about the matter.

“Now let’s talk about the demand in earnest.”

Ryan said.(Read more @ wuxiax.com)

“Of the 21 demands, management-related matters cannot be accepted. Also, it is not easy to raise wages due to the current company’s finances.”

Dennis then immediately responded. A war of words ensued between the management and the union. There were only a few things that could be agreed upon, and most of them ran parallel lines without reconciling their differences of opinion.

After four hours of negotiating, everyone started to get tired.

You can rest for a while and then resume… … .

“I think it would be good to discuss the details next time. That way I can come to America and look like I’ve done something.”

A few laughed at my words.

This was also said to the union members. Negotiations tend to take a long time to reach a dramatic conclusion.

In the first place, hard-earned things seem more valuable than easy ones.

From their point of view, it would be more rewarding to say ‘we got it through hard work’ rather than ‘the management willingly made concessions’.

Perhaps they noticed my intentions, the union members, including Dennis, stood up.

“I’ll see you at the second round of negotiations.”

After they were all gone, I let out a sigh I had been holding back.

“Sigh.”

Although we pretended to be okay with the negotiations, the pressure was not normal.

Rather than worrying that the company could collapse if the negotiation went wrong, the fear that one hit could kill you was greater.

Isn’t it a foul to appear on the negotiating table with that kind of physicality?

I tried to wipe my forehead with my hands, but my palms were drenched in sweat.

Ellie smiled and said.

“Well done. Seeing them negotiating, I thought I could be a lawyer.”

Daryl said he was also nervous, wiping his sweat with a handkerchief.

“You’ve been through a lot.”

I tapped his shoulder.

“I only say that after the negotiation is over.”