850-950 employees, expected to produce about a hundred planes a year, in a market fully saturated with options and awash in red ink. That's about nine workers per plane per year. At 4.5 Mil per plane, 100 planes equals 450 million bucks of annual gross revenues. 900 employees averaging, say, USD 50,000 per annum equals 450 million. A whole lot of employment and economic activity, just to break even. But at 45,000 per employee the gross profit potential is 45 million per annum, about 10% At 40,000 the gross profit is 140 million. So as usual, the key for the fat cats, who walk away with a disproportionate amount of the goodies, is to pay each worker just enough to keep them dependent upon Honda in perpetuity — one definition of a wage slave — whilst the owners and shareholders, who never lifted a wrench or built a turbine, laugh all the way to the bank. Maybe they should buy all the planes with all that profit, eh!
Same old same old.
But what if the orders don't come in as hoped, cost ballons or mechanical issues develop early in service, relatively common situations in the history of aircraft manufacturing? In this case Honda Aircraft's parent company either eats the loss — not for long — or the first casualties are the employees ,who as usual did nothing wrong.
Let's play with some numbers, shall we?
850-950 employees, expected to produce about a hundred planes a year, in a market fully saturated with options and awash in red ink. That's about nine workers per plane per year. At 4.5 Mil per plane, 100 planes equals 450 million bucks of annual gross revenues. 900 employees averaging, say, USD 50,000 per annum equals 450 million. A whole lot of employment and economic activity, just to break even. But at 45,000 per employee the gross profit potential is 45 million per annum, about 10% At 40,000 the gross profit is 140 million. So as usual, the key for the fat cats, who walk away with a disproportionate amount of the goodies, is to pay each worker just enough to keep them dependent upon Honda in perpetuity — one definition of a wage slave — whilst the owners and shareholders, who never lifted a wrench or built a turbine, laugh all the way to the bank. Maybe they should buy all the planes with all that profit, eh!
Same old same old.
But what if the orders don't come in as hoped, cost ballons or mechanical issues develop early in service, relatively common situations in the history of aircraft manufacturing? In this case Honda Aircraft's parent company either eats the loss — not for long — or the first casualties are the employees ,who as usual did nothing wrong.
Same old same old.
Douglas M
Surrey, British Columbia