Monday, May 21, 2007

'German companies are at home in Alabama'


Luxury in Alabama?

What do BASF AG, Degussa AG or Mercedes-Benz all have in common? Firstly, they are all German brands, and secondly, they are all produced in Alabama.
Recently, another luxury automotive brand, ThyssenKrupp AG, has decided to shift production facilities to the U.S. by building a $3.7 billion steel plant near the gulf of mexico. Already, the state of Alabama boasts 50 German industries that employs more than 12,000 workers in industry. So what is so great about AL in the first place?
"We see many similarities between Alabama and Germany," spokesman Christian Koenig said. "Generally speaking, both Germany and Alabama are great places to do business. More specifically, both have a well-trained work force and a strong work ethic." The same spokesperson also mentioned how the strong German prescence in the state helps to draw more companies there. "It becomes a quality-of-life issue, Germans are respected (in Alabama). You can feel it."

Before reading this article, I really had no idea Mercedes (or other German luxury cars) were being manufactured right here in the U.S. Even though a spokesperson commented on how AL was "a great place to do business" I still don't understand what could draw so many foreign car companies into the state. According to the article, Mercedes was the first German company to do so, and perphaps the company's success has drawn in more foreign companies over the years. Also, it is reasonable to assume that producing cars in AL is substantially cheaper than in Germany. What other factors could possibly attribute?

Sunday, May 6, 2007

women, speak up!

"One reason for pay gap: Women don't speak up"

TAKEN FROM: http://www.msnbc.msn.com/id/18418454/

Why is the pay gap between men and women still prevalent within today's society?
This editorial article reveals several reasons as to why the gap has been so persistent, namely due to men typically being more assertive in wage issues with employers than women. For example, a recent women's business magazine found that half of 2,400 women surveyed did not ask for either a raise, additional benefits, or a promotion within the last 12 months. When one major aspect of negotiation is being able to promote oneself, here is where the majority of women end up.

John McKee, business author claims, “There is no doubt, women are less inclined to self-promote, and they’re more likely to accept what they’re offered." So why is this passiveness on women's part occuring in the first place? “Our society teaches women not to negotiate. We get these messages from the time that they are born. We tell girls to wait for things to be offered and not to rock the boat. We teach boys to go out there and be aggressive, to go after what they want., says Carnegie Babcock, author of " Women Don't Ask: Gender and the Negotiation Dividie.”

According to a report by the American Association of University Women Educational Foundation, women earn 80% compared to male colleagues after one year of graduation and 69% ten years or after graduating.

After reading this article, I wasn't surprised men's and women's level of financial assertiveness can be taken into account dealing with the gap in gender payrolls. Generally speaking, women who are assertive in the workplace tend to be better payed and have greater job satisfaction in their careers. Therefore, it makes sense why men in this case would be payed slightly higher as compared to women (not saying this is necessarily right). The article mentions ways in which this payroll disparity can be solved, mainly by making workplaces more family friendly and combating sex discrimination issues. Although this would greaten equality, will the differences in men's and women's incomes ever fully be solved? Or will women merely need to enhance their assertiveness in the workplace in order for change to occur?