Teamsters Union boss James Hoffa thinks Apple and other tech companies relying on overseas factories to make the gadgets Americans love are being unpatriotic. “Everything [Apple does] is in China, or in Asia somewhere…There’s something wrong with that,” Hoffa told a cable news interviewer on the eve of Labor Day.
“I think the president should challenge the patriotism of these American corporations that are sitting on the sidelines saying, why do we have high unemployment but I am not going to hire anybody?” Hoffa said on CNN’s “State of the Union.” His answer is a tax proposal encouraging companies to “start spending some of that money here in America and put Americans back to work.”
Apple, which has $76 billion in cash – some stashed in overseas accounts, recently joined a group of companies lobbying for tax breaks to help the U.S. economy. The lobbying effort with the patriotic name of “WIN America Campaign,” is pushing for a 5 percent “tax holiday.” Apple and other tech giants such as Google, Cisco and Oracle, argue their “common sense solution” would add up to $1 trillion to the nation’s economy and “provide businesses with the security and certainty they need to help Americans get back to work.”
The proposal has gained support from 15 Republicans and eight Democrats in the U.S. House of Representatives. President Barack Obama, who received $1.8 million in 2008 donations from the tech lobbyists, is opposed to the idea. However, Obama is expected Thursday night to unveil a $300 billion jobs program that includes numerous tax cuts.
Whatever the outcome of Thursday speech or its lobbying effort, Apple is unlikely to end its use of overseas suppliers or its presence in places such as China. During the last financial quarter, 62 percent of Apple’s profits came from international sales, a trend that is not expected to reverse.
[via 9to5Mac]
Ed Sutherland is a veteran technology journalist who first heard of Apple when they grew on trees, Yahoo was run out of a Stanford dorm and Google was an unknown upstart. Since then, Sutherland has covered the whole technology landscape, concentrating on tracking the trends and figuring out the finances of large (and small) technology companies.
123 responses to “Teamsters Union Boss Charges Apple Being Unpatriotic”
Shouldn’t he be more worried about all the corruption his own company engages in? Ohh wait…i forgot …he has his good buddy Obama trying to cover that up.
He’s an idiot. He doesn’t believe Apple went to China and Japan due to the high cost of health care and regulations? What crack pipe is he smoking?
Yes let’s force Silicon Valley to do their manufacturing at home and then watch them die as Samsung, LG, Lenovo and the other Asian producers price them out of existence.
Apple (and many other companies) also went overseas to avoid the insanely high corporate tax rate in the USA. We have the 2nd highest in the world. Hoffa is indeed an idiot and like Ballmer – I hope he keeps blabbering for as long as it takes.
And what about the other Fortune 500 Companies that keep their profits in foreign banks to avoid taxes? Unpatriotic, good business sense or just greedy? Our Government wrote the laws and they are simply taking advantage of the situation. Bottom line is that politics is not an honorable profession and neither is Labor Union leadership.
Scew the Teamsters and all of the other union thugs!
That is why WE LIVE IN A FREE COUNTRY! living in a free country means holding and saving all the money you want with out being forced to do something by the government….. If Apple assembled their products here an iPhone wwould cost 800 dollars ON CONTRACT…. how can we get in contact with this idiot
patriotism is so last millenium
When will people realize the unions are a large reason for higher costs of goods that drove production overseas? It’s been going on for 25+ years.
The labor cost of assembling an iPad in China is $10. Even with zero corporate tax we’d be hard pressed to compete with that.
No way Apple could manufacture here in the states. Even with a fully automated robotic factory in some desolate remote corner of Wyoming, the taxes and EPA laws would make make an iPod Shuffle cost as much as a loaded MBP.
I like how he said ‘we have some republicans in the teamsters but when you explain the situation to them they’re for Obama’. How many bricks through the windshield of their car does it take to explain it to them until they’re for Obama?
Only 7% of the country has unions anymore. Labor cost is the total reason. At least Apple has hundreds of stores in the USA to sell their products. I would guess that almost every company in the USA would be anti-American in Hoffa’s theory.
Manufacturing in the U.S? Are you freaking kidding me?! The last thing Americans want is to have to pay two or three times more for that kind of products.
I heard an American made iPhone would cost over $3,000; whether that would be contract or not is anyone’s guess.
Politics can be honorable and has been shown to be such with ones like Paul Ryan (of course, my opinion) but yes I agree, it has been hard recently to see past the fog in Washington.
Corporate tax is now highest in the US. Japan dropped theirs, or are in talks to drop, recently.
The teamsters are the worst of the unions. Unions have helped drive up the price of American goods. Why would apple want to manufacture anything here in the states?
Labor cost is part of the problem, yes. But as we get more and more automated, this will become less of a factor. Just because it would be tough to compete, that’s no reason to keep our corporate tax rate so uncompetitive with the rest of the world.
duh. to be patriotic.
Bull. Usual right-wing propaganda (crap). As your high school teacher used to say: Show your work.
Considering Apple has more cash on hand than most nations, and that most of that money was made from DOMESTIC sales, I tend to agree with Hoffa. I’m not saying he’s entirely right, but that Apple has made zillions of dollars, primarily from the US market, and will still choose a manufacturer based purely on who can make an iPad 7¢ cheaper.
Apple does have an obligation to their shareholders, but they also have an obligation to their stakeholders. Just ask Lenovo how well they’ve fared since people figured out the ThinkPad was no longer a “true blue” IBM product, but they were still paying IBM prices for just another Chinese cheap-crap computer. Considering Apple’s success is based on the loyalty and goodwill of its customers, they need to start taking a “longer” view of their choices, especially in a post-Jobs world.
Why weren’t you saying that Monday,a s you were enjoying your PAID HOLIDAY?
Ignorant scum.
Who’d you hear that from, Sean Hannity or Rush Limbaugh?
And they’ve already shown that moving the manufacturing here to the US would make the products so expensive that no one would buy them. Apple fans are devoted but if they were charging 5 grand for an iPad it wouldn’t be nearly the success it is now. It’s not a matter of patriotism. I’m sure Steve would have loved to produce them here but a business has to make money.
Moron. Read it and weep (for your future)
Then explain why GM CHOSE to manufacture the Chevy Cruze in the US. Why the cost structure was SO PROHIBITIVE that they’re making it domestically, for less than it would cost overseas. How much of the cost of American goods is now going to pay the salaries and bonuses of executives vs 25 years ago?
And did you enjoy your three day weekend? Hell, just the weekend itself? Then STFU with the anti-union propaganda and LEARN something before you open you’re ignorant yap.
One thing to realize in all this is that the basis for why unions came to be so many years ago (job safety, work conditions, child labor) have been addressed by various govn’t entities. Unions, in certain industries, and situations, may be beneficial, but Hoffa’s union types are not good for America or the economy any more than companies going overseas to do business are.
Choosing the location for a car factory is complicated and involves a lot more than simply the cost of labor. For example, if you build a car in the USA and export to Brazil, there is a massive (50% to 100%) import tariff. If you build a car in Mexico and export to Brazil, there is no tariff.
I can’t answer your question because I’m not GM management, but I can make some educated guesses about why the Cruze is built in the USA.
1 – Most of the parts suppliers and customers are in the USA, so shipping time and costs are reduced.
2 – The dollar has plummeted, so it makes no sense to build a car with expensive currency and sell for cheap currency.
3 – Manufacturing wages in poor countries have been skyrocketing.
4 – There is idle plant capacity and idle experienced workers, which can be cheaper and get up to speed faster than building a new factory and training new workers. In some cases they may be paying people who aren’t building cars, so you might as well pay them to build cars.
5 – As mentioned before, the USA has many free trade agreements in place, so cars here can be exported to many countries free of tariff that might otherwise place a tariff on the car if it were built elsewhere.
The positive and negative effects of the unions are something to consider, but the union is only one piece of the pie. They certainly aren’t the only topic or even the most important topic when deciding where to build something.
We have to cut our loses when it comes to bringing back or creating manufacturing jobs here in the US. With all the politics being blamed that may have caused the destruction of manufacturing jobs here in the US whether its just finger pointing, bad policy, corporate greed, tax loopholes etc etc. It is now time for our people to focus on obtaining knowledge. We all have to become smarter, wiser workers to survive in this new world economy. I told my collge age son if he doesn’t get a college education or some type of comupter technology training his life will be hard press. Now for our fellow countrymen who are not fortunate enough or have the desire to become knowledgable workers we must all come together (left, right, independent and Tea) and come up with a viable plan so all of us can live in this country as prosperous as we possibly can. In the meantime look toward continuing education as our only means for survival.
Multimillionaire James Hoffa doesn’t care if iphones cost $200 or $2,000 apiece he can afford it. He syphons off millions from his union members. Reg NON-UNION working Americans couldn’t afford iphones made by Mr. Hoffa’s union labor.
Here come the teabaggers to attack unionized labor. Y’know, people and families.
My $27,000 Chevy Malibu was assembled in Mexico; explain to me why the cost structure is SO PROHIBITIVE that they aren’t making it domestically.
Different models have different assembly plants. And besides, the Cruze is based off the Opel, just like the Buick Regal. Cheaper to import the parts and assemble domestically whereas the Malibu’s parts are made domestically and assembled elsewhere.
The profit of my Malibu is going to pay the pensions of retired union employees like my friends father and a co-worker of mine (both of which have been retired for over 12 years now).
I’ve owned your Liberal gibberish twice now, imajoebob. Wanna revise your ill-informed rant or just keep looking like a political stereotype?
Yeah I heard from a political talk show host that the iPhone would cost greatly more..
http://r1b2.posterous.com/corp…
There ya go douchebag. That same teacher would also say: Do your homework.
http://r1b2.posterous.com/corp…
That same teacher would also say: Do your homework.
Labor day celebrates the economic and social contributions of workers, not unions.
Ignorant scum.
How is saying that the CTR is highest in the US right-wing propaganda? Japan’s is 39.54% and the US is 39.21%; the two highest, respectively. If Japan drops, which they plan to, we will be highest.
Hopefully COM will post my link to prove this.
imajoebob, I once thought your far-left criticism was crazy, but you’re borderline insane! You don’t make any sense with your rants and anyone who shares a different opinion than you is either “scum” or what they’re saying is “crap”.
COM – block this a**hole already!
How does the U.S. corporate tax rate compare to China’s ?
If those greedy American workers would just work for Chinese wages….
I love how willing people here are to demonize people in this country who actually produce things and want to get wages they can live on. Congratulations you bought into the corporate propaganda 100%
We often talk about Corporate Greed, however Union Greed has force almost all manufacturing and assembly jobs overseas. I have yet to meet a unionized worker who says to a retail worker or a coffee shop waitress – ‘let me pay you 5 times what the bill is because I make union wages and you don’t’. Unions wages and benefits are great – as long as you are the one benefiting from them. Wouldn’t it be wonderful we had legislation that ensures that all government workers with union wages can NOT be paid more than 10% more than the average wage earned by non union workers doing the same or similar jobs.
Because YOU KNOW YOU’RE LYING. The most recent studies have shown that the REAL average US corporate tax rate is between 17 and 19%, making it one of the LOWEST in the industrialized world. Not one of the highest, as you falsely claim.
You cherry-pick a FALSE statistic, present it as factual, then use it to prove another bogus supposition. That makes you either a DUPE or a LIAR.
Which is it?
Then where? (That’s the point, why didn’t you just say, “Once, at Band Camp…”)
And WTF does that have to do with the Cruze, Chevy’s newest model and most advanced manufacturing facility? Jack, that’s what. But answering the question honestly destroys you’re entire thesis. So, like any good BS-artist neocon jackwagon, you try to change the subject.
Since you changed the subject – you’re also full of sh*t. The UAW took over the pensions of retirees YEARS AGO. GM doesn’t pay a single dime for their pensions anymore. You’re ignorance knows no bounds.
Just to demonstrate howboundless it is, and how you “own” nothing, Profit is calculated AFTER you pay overhead costs, like pensions and benefits and executive pay. So it’s IMPOSSIBLE for profit to pay for pensions. You don’t even understand the most BASIC of business concepts, and I doubt you could even spell GM – if they spotted you two letters!
Go home now, before you get hurt.
This same asshole called for “taking out” members of a political party the other day too. Where are d’boys who made his father disappear when you need them?
Make labor leader jobs voluntary with no more union dues from the workers who really can’t afford the payoffs for the real fat cats.
I’m not changing the subject, I’m simply explaining that it is more cost effective to ship parts into the U.S. and assemble rather than ship the entire vehicle. The Cruze and the Regal are both built on European (Opel) chassis with mostly European parts; same as the GTO (Australian and British — the Monaro). Same reason why Nissan and Toyota are generally built in the U.S.; cheaper to assemble in the destination country rather than ship an entire vehicle. The Malibu, however, is the other way around since the parts are manufactured in the U.S. and assembly is outsourced to Canada and Mexico. So, since you obviously aren’t smart enough to get it the first time, this has EVERYTHING to do with the Cruze and your post. You said, “Then explain why GM CHOSE to manufacture the Chevy Cruze in the US. Why the cost structure was SO PROHIBITIVE that they’re making it domestically” and I answered, because in this case, it IS more cost effective to assemble this particular vehicle in the U.S. So yes, the cost structure is prohibitive, otherwise they would assemble it on the same assembly line as the Opel and ship each car stateside.
As a business owner, I understand how profit is calculated after overhead costs. I also see my books as ALL profit and any costs (payroll; insurance; etc.) affects my bottom line, but I’m not here to argue lingo or which way of looking at the books is right; I apologize for not quoting a high school textbook.
And please don’t insult my intelligence. Of course I can spell GM and I even know what it means! In fact, since we’re on the subject, I vaguely recall an argument I had with you about Gov. Perry where you had to edit a comment twice to correct misspells.. Who should be doubting who in spelling?
And of course the UAW took over pensions. But who do you think pays the UAW?! Why, instead of arguing good points, you only resort to picking apart comments and insulting people’s intelligence?? You aren’t helping your cause; you are only looking more and more like a egocentric, narrow-minded, Liberal stereotype.
P.s. I am home.
MacRumors had a thread, CNET briefly covered the topic, among others. Of course it is all here say; exactly the reason why I said “I heard” and not “In fact”
The nominal corporate tax rate is over 35%. That is a fact.
Just because your Liberal bias websites tries to present the claim that greedy corporations find ways not to pay it doesn’t make it a false statistic.
That’s because unions make it so expensive to hire and -god forbid- fire union employees. He wants Apple to go the way of Detroit. Look at that city now. Besides, whose company is it? No his. If he doesn’t like Apple because of their hiring practices, he’s free to start his own company.
Didn’t I read somewhere that Apple is building a new campus, then a 2nd? Isn’t that kinda pro American? Just saying . . .
It is not wage costs. These places are highly automated factories. The cost savings is industrial waste.
Hoffa is a douche bag crook just like his gangster father. He has zero credibility outside of the Teamsters Union and politicians who want his financial support.
What is the “nominal corporate tax rate” and who actually pays it? Answer: a figment of your imagination, and no one.
If you can’t manage a cogent argument, pack up your Glenn Beck picture books and go home.
Pick up a history book, you vapid cretin, and find out the real story of who created and championed Labor Day. You’re not just ignorant, you’re deliberately ignorant, which makes you the worst kind of hypocrite. You’re a useless twit.
Once, at band camp…
Maggot
I asked why GM chose to make the Cruze in the US. You responded that your Malibu was made in Mexico. But you didn’t change the subject.
An absolutley CLUELESS IDIOT.
wow – one day! out of 365 – well that’s an impressive achievement!
forget about companies which are providing jobs and money for the rest 364 – screw those guys! they make you work instead of giving you days free of work and all they give you is this lousy money you can spend on stuff.
but you’re right with this PAID HOLIDAY – you did have to pay for it – by working harder all those other days. AND you had to pay a bit more to everyone this year to cover the cost of their employees not working that day. money doesn’t come from some magical land – it has to be earned one way or another, money = work * time, the less time you want to work and the more paid holidays you want to have the harder you have to work for it – there’s no magic in that – ignorant scum.
Are you serious that you still can’t see point? Lets try this a third time!
Sometimes GM decides to make cars in the country and sometimes out of country; whichever is more cost effective.
An absolutely STUPID ASSHOLE. Put your damn bifocals on and read! Gosh its like talking to one of my wife’s elementary students! GET IT ALREADY!
Yup, I must too ignorant for you to understand.
I guess I’ll agree with you. I mean, it’s useless to argue speculation, right?
Yup. Maggot.
Get rid of the unions, and I bet jobs will return back to the US.
I do not think that is how the iPhone 5 is gonna look like because it has iPod instead of music and it doesn’t have reminders