Union officials’ argument

In an effort to stop the migration of many of the automobile manufacturing facilities from the Detroit area, Detroit’s city council is considering passing a statute that would give investment tax credits to auto manufacturers. Effectively, this would reduce auto manufacturers’ costs of using capital and high-tech equipment in their production processes. On the evening of the vote, local union officials voiced serious objections to this statute.

Outline the basis of the argument most likely used by union officials. (Hint: Consider the impact that the statute would have on auto manufacturers’ capital-to-labor ratio.)

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As a representative for one of the automakers, how would you counter the union officials’ argument?

Your responses must be comprehensive, using terminology and concepts presented in the primary textbook as well as supplementary resources.  Write in complete sentences and use good grammar, double-spacing, 12 point font, with one inch margins.  Be sure to cite your resources and provide the references using APA format.  Remember to reference all work cited or quoted by the text authors. You should be doing this often in your responses.  Complete and submit the Essay.

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