Globalization in RCA

Jack Welch’s Statement, “Ideally, you’d have every plant you own on a barge.” has been a reference point in matters concerning migration of companies. The migration is usually attributed to the strengthening or imposing of limitations and constraints hindering the smooth operation and maximization of profit by the companies. The restriction may be regarding labor force both the working condition and the wages, whereby they move to greener pastures, where labor and the working conditions are not of primary concerns. This can be achieved by migrating from a developed country to a less development country where unemployment is so high such that people compromise on conditions and wages. This mobility enables the companies to maximize profits by moving to zones or countries that provide the lowest cost of production. For instance, moving from the US to Mexico guarantees cheap labor and lenient regulations by the government in an attempt to attract foreign direct investment.
Movement by RCA to different geographical locations from 1930 onwards after the first world war was attributed to several factors. Firstly, organized labor, the initial choice of RCA to set up a plant in Camden, was to take advantage of the desperate workforce and within six years it had hit a peak of 10,000 workers. The primary criterion of employment was by selecting docile workers who were most unlikely to champion for their rights; this was achieved by employing mostly women, which constituted about 75% of the total workforce.

But this strategy was discredited when the supposed docile workforce started forming unions and demanding for rights. This led to several strikes which were due to poor management of the company at the time, and finally, the company moved to Bloomington, Indiana where there was a higher demand for jobs after two of their major industries shut down.
Poor management was another factor that led to the constant movement. The move to Indiana was successful at first, but labor activism became rampant as the workers became settled in the company and believed they deserved improved working conditions. The struggles and scuffles between the managers led to conflicts that were unavoidable and resulted in the migration. The management was unable to cooperate and tame the employees, and with the competitiveness in the market from foreign companies, the company was forced to close the plant. This was to enable the massive movement across the border to Ciudad in Mexico with the same aim and strategy to find cheap labor, especially from women. This move was also influenced by workplace activism but in Mexico the lack of international or interregional coordination that rendered the unions inefficient and ineffective.
The arrival of RCA in all the communities of towns that it migrated had a somewhat similar impact to both the community itself and the workers. The workers were initially not choosy and determined to work because of the need for money as indicated; RCA mostly moved to needy or rural communities. But after settling and being comfortable, the workers demanded better conditions and wages and became reluctant by striking and walk away from jobs and thus the eventual migration by the companies. Communities were also promoted by the arrival of RCA, and this was indicated by the development of towns in the localities of the plants. This was due to the income brought by the company and thus enabling the people to afford better living standards.
With the capability of capital to move the is uncertainty and volatility of labor because companies will pursue labor anywhere so long as it is cheap. The workforce habits and conditions are responsible for the decisions made by the management. Mitigation of “race to the bottom” can be achieved through regulation of jobs and working conditions in all geographical regions which can be accomplished through the international of interregional unions that work together to regulate companies.