Capital to Labor Question

In a effort to stop the migration of many of the automoble manufacturing facilities  from a city's area. The city council is condsidering passing a statute that would give investment tax credit to go auto manufacturing.

This would reduce auto manufacturing costs of using capital and high tech equipment  in their production processes. On the evening of the vote, local union officials voiced serious objections to this statute.

Outline the bases of the arguement most liely used by union officials. Consider the impact the statute  would have on auto manufacturing  capital  to labor ratio.  

As a representative of an auto manufacturing makers, how would you counter the offer with the union officials argument?