Apple Inc. AAPL -0.51% is manufacturing its new Mac Pro computer in China, according to people familiar with its plans, shifting abroad production of what had been its only major device assembled in the U.S. as trade tensions escalate between the Trump administration and Beijing.
The tech giant has tapped contractor Quanta Computer Inc. to manufacture the $6,000 desktop computer and is ramping up production at a factory near Shanghai, the people said. Quanta’s facility is close to other Apple suppliers across Asia, making it possible for Apple to achieve lower shipping costs than if it shipped components to the U.S.
While the Mac Pro isn’t one of Apple’s bigger products, the decision on where to make it carries outsize significance. Apple’s reliance on factories in China to manufacture its products has been an issue for the company, especially under President Trump, who has pressured Apple and other companies to make more in the U.S.
With the previous Mac Pro model, released in 2013, Apple Chief Executive Tim Cook trumpeted plans to build it in the U.S. Apple invested $100 million in tooling and other equipment for a plant in Austin, Texas, run by contract manufacturer Flex Ltd. Each computer was stamped with “Assembled in the USA.”
.. “Final assembly is only one part of the manufacturing process,” the spokesman said, adding that the company’s investments support two million American jobs. The Mac Pro is Apple’s most powerful computer, used primarily by a small group of professionals working in industries such as film and videogames.
President Trump has pressured Apple to make some iPhones, Macs or iPads in the U.S. since the 2016 presidential campaign. He told The Wall Street Journal in 2017 that Mr. Cook promised to build “three big plants, beautiful plants” in the U.S., a claim Apple declined to comment on at the time. Last year, as his administration imposed tariffs on imports from China, Mr. Trump said the only way to ensure prices for Apple goods don’t increase would be to make products in the U.S.
Apple in the past two years has announced a second campus in Austin, Texas, to handle customer support and operations, and announced more than $500 million in new contractswith U.S. component suppliers that manufacture at home. But Apple hasn’t disclosed any plans to build new manufacturing facilities in the U.S.
Making the new model in China isn’t likely to affect many workers in Texas because demand for the old Mac Pro had fizzled years ago. The Flex workforce had shifted to refurbishing already-made computers, former Flex employees said. The Flex plant continues to make products for HP Inc. and other companies, they said.
American men do have genuine reasons for anxiety. The traditional jobs that many men have filled are disappearing, thanks to automation and outsourcing. The jobs that remain require, in most cases, higher education, which is increasingly difficult for non-affluent families to afford. We should indeed tremble for the future of both men and women in our country unless we address that problem, and related problems of declining health and well-being for working-class men.
.. Three emotions, all infused by fear, play a role in today’s misogyny. The most obvious is anger — at women making demands, speaking up, in general standing in the way of unearned male privilege. Women were once good mothers and good wives, props and supports for male ambition, the idea goes –but here they are asserting themselves in the workplace. Here they are daring to speak about their histories of sexual abuse at the hands of powerful men. It’s okay for women to charge strangers with rape, especially if the rapist is of inferior social status. But to dare to accuse the powerful is to assail a bastion of privilege to which men still cling.
.. Coupled with anger is envy. All over the world, women are seeing unprecedented success in higher education, holding a majority of university seats. In our nation many universities quietly practice affirmative action for males with inferior scores, to achieve a “gender balance” that is sometimes dictated by commitment to male sports teams, given Title IX’s mandate of proportional funding.
.. But men still feel that women are taking “their” places in college classes, in professional schools.
.. Envy, propelled by fear, can be even more toxic than anger, because it involves the thought that other people enjoy the good things of life which the envier can’t hope to attain through hard work and emulation. Envy is the emotion of Aaron Burr in Lin-Manuel Miranda’s “Hamilton”
.. And then, beneath the hysteria, lurks a more primitive emotion: disgust at women’s animal bodies.
.. In the United States, we observe this dynamic in racism, in homophobia and even in revulsion toward the bodies of people who are aging. But in every culture male disgust targets women, as emblems of bodily nature, symbolic animals by contrast to males, almost angels with pure minds.
.. Disgust for women’s bodily fluids is fully compatible with sexual desire. Indeed, it often singles out women seen as promiscuous, the repositories of many men’s fluids.
.. as with the apparent defamation of Renate Dolphin in Kavanaugh’s infamous yearbook, men often crow with pride over intercourse with a woman imagined as sluttish and at the same time defame and marginalize her.
.. Disgust is often more deeply buried than envy and anger, but it compounds and intensifies the other negative emotions.
.. Our president seems to be especially gripped by disgust: for women’s menstrual fluids, their bathroom breaks, the blood imagined streaming from their surgical incisions, even their flesh, if they are more than stick-thin.
Today, the profitable H.V.A.C. company, owned by United Technologies Corporation—a federal contractor whose climate, controls, and security division, of which Carrier is a part, reported three billion dollars in operating profit in 2016—is letting go of more than two hundred employees in its second and final wave of Indiana-based layoffs, which began last July.
In total, the company will be laying off more than five hundred employees as it moves manufacturing jobs to Monterrey, Mexico.
.. Donald Trump, who made saving Carrier’s “big, beautiful plant” one of his most repeated campaign promises
It was part of his broader preëlection claim that “A Trump Administration will stop the jobs from leaving America.”
.. “We took him serious,” Elliott said, tearing up as she sat in a booth at Sully’s, “because he did seem to be an entrepreneur. He knew this offshoring shit was gonna go down, and ‘I’m not gonna stand for it’ is the way he made it sound. Hillary never said a word to us or about us. Obama never flew Air Force One to our facility, like he did to one in Elkhart, Indiana, when he was campaigning. I thought, This man is not gonna be anybody’s puppet.”
.. Hundreds of Carrier jobs will remain in Indianapolis, but Elliott and others argue that those jobs—many of them office-based, not on the manufacturing line—were never in jeopardy.
.. . “Just don’t bullshit us. We never thought the office personnel was going anywhere, anyway. They’re not making units. We are. We’re the ones that made the $9.7 billion that they collected.” She went on, “We can understand companies having to go overseas if they’re losing money. We get it. But Carrier is the top A.C.- and furnace-making company in the nation, getting money hand over fist.”
.. It’s not just that I’m a lost paycheck away from homeless now. I will never find a job like this one again.”
.. “I voted for Trump,” he told me. “Financially, I thought he’s a genius. I said, ‘Well, America’s in debt; maybe he can do something and turn the economy around.’ Obviously, it’s not looking that way. Mr. Trump didn’t do his research and made himself look silly in front of the nation when these layoffs and early retirements began.”
.. He mentioned Senator Bernie Sanders .. “In retrospect, I would have voted for him if I could do it again.”
.. After that, his most likely path is to go back to school, he said, “for welding
.. The most pointed denunciation came from Chuck Jones, the former president of United Steel Workers Local 1999, in Indianapolis, who disputed Trump’s initial characterization of the Carrier deal and was targeted by Trump on Twitter as a result. “Trump is a liar and an idiot,” Jones told the crowd, adding, “He’s a con man, pure and simple, who sold us a bag of shit.”
the fact that a worker’s wealth and well-being is much more dependent upon her employer than the employer is on a given worker tilts things in the employer’s favor.
.. Two trends demonstrate the decline of labor and the ascent of business. Since 1979, after-tax corporate profits as a share of gross domestic product have grown by 22.8 percent, while the share of nonfarm business sector income going to labor has dropped by 10.3 percent.
The decline in worker bargaining power in the United States is the cumulative effect of numerous small and large changes over recent decades reaching into almost every area of law and policy. This combines with a decline in the enforcement of existing laws that could protect workers’ bargaining power — laws protecting unions, laws against wage theft, nondiscrimination laws, and more.
.. Among these changes is the requirement that employees sign what are known as “noncompete” and “no-raid” agreements, both of which restrict workers’ ability to extract pay hikes by threatening to take similar jobs at competing companies.
.. “less than half of workers who have non-competes also report possessing trade secrets.”
When entry-level workers at fast food restaurants are asked to sign two-year non-competes, it becomes less plausible that trade secrets are always the primary motivation for such agreements.
.. The treasury report estimated that 30 million American workers have signed noncompete agreements.
.. 94 percent of the net employment growth in the U.S. economy from 2005 to 2015 appears to have occurred in alternative work arrangements.
The growing emphasis on “shareholder value” has provided additional justification for all of these anti-worker developments.
.. “the shareholder value movement starting in the late 1980s and now institutionalized through industry analysts” was crucially important in the devaluation of employees:
.. Accounting in business is mainly about costs. Finance people hate fixed costs because of the challenges they raise to share price valuation when there is uncertainty, and the biggest fixed costs are labor. Simply moving the same labor costs from employees to outside staffing companies moves it from one part of the accounting ledger to another and makes analysts happier.
This mentality, in turn, encourages “the use of temps and contractors” to fill high-wage jobs because “that way the employer doesn’t have to raise wages for all their employees.”
.. Companies could outsource work to areas with cheaper labor and less of a union presence. This both weakened the union and ramped up competitive pressure on the companies that were unionized. The result was fewer unions.
.. In 2017, 6.5 percent of the private sector work force was unionized, down from 35 percent in 1955.
.. The contemporary weakness of organized labor and the threatened status of employees has roots in the breakdown in the 1970s of the postwar capital-labor accord — what A.H. Raskin, the legendary labor reporter for The Times, called a “live-and-let-live relationship” that held sway for 30 years.
.. First, they would alter antitrust enforcement to require consideration of the likely effect of mergers on concentration in the labor market, in order to prevent “too high a risk of wage suppression.”
.. Second, Krueger and Posner would support legislation making noncompete agreements “uniformly unenforceable and banned if they govern a worker who earns less than the median wage in her state.”
.. ban no-poaching arrangements altogether:
We propose a per se rule against no-poaching agreements regardless of whether they are used outside or within franchises. In other words, no-poaching agreements would be considered illegal regardless of the circumstances of their use.
.. In the 2016 election, Trump profited from the conviction of rural and working-class voters that they were on a downward trajectory. If anything, Trump appears to be gambling that letting those voters’ lives continue to languish will work to his advantage in 2020.
.. His administration has turned the executive branch, the federal courts and the regulatory agencies into the sworn enemy of workers, organized and unorganized. Trump is indisputably indifferent to the plight of anyone in the bottom half of the income distribution:
- look at his appointments,
- look at his record in office,
- look back at his business career and
- look at the man himself.