How would you counter the union officials arguement

Reference no: EM13188110

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. Effecively, this would reduce auto manufacturers' costs of using capital and hihg-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 arguement most likely used by union officials. (Hint: Consider the impact that the statute would have on auto manufacturers' capital-to-labor ratio). As a representative for one of the automakers, how would you counter the union official's arguement?

Reference no: EM13188110

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