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normaljoe | 5 years ago
SV labor is expensive compared to other markets (see below). I have worked in SV and elsewhere and mostly elsewhere is 1/2 the pay as SV and without the things like free lunch / coffee bar / shuttle service.
SV doesn't need unions because the turnover rate is so high that the companies are basically providing what unions would negotiate just to compete (free lunch / coffee bar / shuttle service). It's still a buyers market from the employee standpoint.
I do think SV is not quite at the inflection point just yet, but it is moving in that direction.
The irony in this is actually that the cost of labor is high because the cost of living is high. The cost of living is high because of the NIMBY folks preventing multiunit housing. If the ballon collapses those NIMBY folks would see their precious house values decline.
Finally as to superior products most Japanese and German cars sold in the US are still built in the US, just not Detroit because of.... Wait for it.... Union Workers.
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