CNBC Contributor Carol Roth cites the U.S. Army's decision to award a $77M contract to upgrade...


CNBC Contributor Carol Roth cites the U.S. Army's decision to award a $77M contract to upgrade the M4 rifle to a Belgian-based company as an example of how unions are hurting the workers they're meant to protect. FN Herstal will manufacture the gun in the right-to-work state of South Carolina, having been able to underbid Colt and Remington, both of which would have made the rifle in non-right-to-work states.

Comments (6)
  • LT
    , contributor
    Comments (5783) | Send Message
     
    IF, all 3 companies bidding were going to make the rifle in "right to work" states, then the costs should have been near the same....so it appears 2/3 wanted more profit and got underbid.

     

    Nothing to do with unions. Terry330 is right, just another CNBC & republican spin.
    3 Mar 2013, 09:16 AM Reply Like
  • The Geoffster
    , contributor
    Comments (4296) | Send Message
     
    The middle class was able to prosper in the U.S. after WW II because Europe, Japan and China had been decimated. U.S. manufacturing was the only game in town and wages went where the production was. The rest of the world has caught up. In a global economy, wages still go where the production is. Unfortunately for the U.S. other countries can produce the goods the global economy desires for less because their labor costs are less. In order for U.S. workers to receive the pay they once enjoyed, efficiency and innovation must outpace the rest of the world. Alternatively, the no nothing's can reintroduce tariffs and cripple the economy for good.
    3 Mar 2013, 09:20 AM Reply Like
  • Terry330
    , contributor
    Comments (881) | Send Message
     
    After WW II the tax rate on wealthy was 91%, on wealth not paid to workers, and union membership was at record high.
    3 Mar 2013, 09:41 AM Reply Like
  • IgnisFatuus
    , contributor
    Comments (2761) | Send Message
     
    At least the guns/upgrade will be manufactured in the US. I presume that they won't be importing workers from Belgium to do it.
    3 Mar 2013, 10:32 AM Reply Like
  • dacama1
    , contributor
    Comments (221) | Send Message
     
    The workers at the plant outside of Columbia, SC say a big "thanks" to the union workers who priced themselves out of this contract.
    3 Mar 2013, 01:49 PM Reply Like
  • linda_58
    , contributor
    Comments (20) | Send Message
     
    Truth is that the Dept of Defense has been on Cost Reduction (CR) basis for the last 18 months and have been directed by the 'boss' (read executive branch) to go with the low bidders - regardless of unseen cost overruns, lack of exprerienced personel (meaning lower wages) , et.....CR hit way before sequestration. We seen the effects all over the DC/VA/MD area since last November.
    The fact that the company is in a right to work state just means by setting up there, they were able to keep costs down by not having to pay graft money to the unions. Good for them!
    4 Mar 2013, 11:20 AM Reply Like
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