Labor cost per hour, wages and benefits for hourly workers.
Ford: $70.51 ($141,020 per year)
GM: $73.26 ($146,520 per year)
Chrysler: $75.86 ($151,720 per year)
Toyota , Honda, Nissan (in U.S. ): $48.00 ($96,000 per year)
According to AAUP and IES, the average annual compensation for a college professor in 2006 was $92,973 (average salary nationally of $73,207 + 27% benefits).
Bottom Line: The average UAW worker with a high school degree earns 57.6% more compensation than the average university professor with a Ph.D., and 52.6% more than the average worker at Toyota, Honda or Nissan.
Many industry analysts say the Detroit Three, must be on par with Toyota and Honda to survive. This year's contract, they say, must be "transformational" in reducing pension and health care costs.What would "transformational" mean? One way to think about "transformational" would mean that UAW workers, most with a high school diploma, would have to accept compensation equal to that of the average university professor with a PhD.
Then there's the "Job Bank"When a D3 ( Detroit 3 carmaker) lays an employee off, that employee continues to receive all benefits - medical, retirement, etc., etc., PLUS an hourly wage of $31/hour.
Here's a typical story....
Ken Pool is making good money. On weekdays, he shows up at 7 a.m. at Ford Motor Co.'s Michigan Truck Plant in Wayne , signs in, and then starts working -- on a crossword puzzle. Pool hates the monotony, but the pay is good: more than $31 an hour, plus benefits."We just go in and play crossword puzzles, watch videos that
someone brings in or read the newspaper," he says. "Otherwise, I just sit."
Pool is one of more than 12,000 American autoworkers who, instead of installing windshields or bending sheet metal, spend their days counting the hours in a jobs bank set up by Detroit automakers as demanded by the United Auto Workers Union - UAW - as part of an extraordinary job security agreement.
Now t he D3 wants Joe Taxpayer to pick up this tab in a $25 Billion bailout package - soon to be increased to $45 Billion if Nancy Pelosi and Hillary Clinton have their way.
The "Big 3" want this money - not to build better autos. No. They want it to pay the tab for Medical and Retirement benefits for RETIRED auto workers. Not ONE PENNY would be used to make them more competitive, or to improve the quality of their cars.
We ALL have problems paying for our Medical Insurance - but the Democrat leaders in Congress now want us to pay the Medical Insurance premiums of folks who have RETIRED from Ford, GM and Chrysler.
Not a good deal for us.
How about Chapter 11 -???????
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
22 comments:
I have a wonderful response for Mr. Pool; given in a fashion he will clearly understand while he is doing his daily crosswords. It has seven letters...starts with"f" ends with "off".
I dont know what the average wage for people working in the general public, like geroge bush said we are a service nation, but i dont think they can afford a car from people making that kind of money.
So here we are , low paying wages or no wages.
Whos going to be able to afford a car from anyone with no jobs.
Please help america-- go down the drain buy a toyota because there saving america by working for lower wages, is america going backwards or what? I drive a truck and make about the same as i did in 1987,wish i could buy a new gm.
and people were saying how great unions are when these things came up months ago. anyone else remember?
man its time to allow employers to ignore unions and lower our costs!
UAW president was on Fox Business this AM. Pretty much said they have been making concessions since 2002 and will make more, but nothing real meaningful, IMO. Cited the fact that the southern states made big concessions to the foreign companies to build plants in their states, ie tax breaks, infrastructure construction and other inducements. May be so, but whatever the taxpayers gave, I am sure they have made up in tremendous increase in tax base. He didn't seem to care that the creditors,on the hook for debts from the big three, are going to take a severe hit, 30 cents on the dollar, not to mention the stockholders (many of us who opwn car stock through 401K's and IRA's)are bleeding badly.
I hope this bailout works,but until GM etal get competetive, it will be just pouring money down a rat hole. Now the housing sector is lining up for a hand out. We are on a slippery slope and new Admin will accelerate with pork out the kazoo, not to mention billions more for the UAW who own them.
Dear friends, we are being fleeced, the cure is going to be worse than the disease. This is the biggest power grab since the reds took over Russia. We are being nationalized and it is scary.
8wt
The water pipes have busted and were all gonna get wet.
I quess the bottom line is, the American job doesnt pay for the American dream anymore. If the American dream cost you so much in time, money, stress and anxiety, is it worth it anymore? Somewhere in that dream was supposed to be happiness. Now with the toll this society has taken on everyones daily lives the happiness only comes in tiny moments of grace. I quess thats supposed to be enough, sometimes I wonder. I think some people pass right by those moments and never see them.
Quit blaming capitalism for socialism’s failures!! If you don't get that; you never will.
1:12 Its sad that you dont have one ounce of spiritualism in your being. I make an observation of the reality we find ourselves in and thats all you got. Its not about capitalism or socialism, its about right and wrong. There is nothing else.
Sounds outrageous, doesn't it? Everyone would agree.
But it's a major distraction.
You see, the 800 pound gorilla in America is what GOVERNMENT WORKERS, state, local and federal, are paid-- including their golden retirements (guaranteed never to be reduced by a bankruptcy court)and golden health benefits FOR LIFE.
Don't forget that the BIGGEST labor unions in America are the ones protecting the jobs of public workers. It's a fact.
And of course, let's not forget, the job security. No one else in America can compare on that count either.
So enough about how overpaid auto workers are. It's a distraction. Houdini would be proud.
1:40. I don't care what the job description is, government or private sector, if you are doing crossword puzzles while making at least $30 per hour (with righteous benefits). My response is still the same (by the way, I solved another downward crossword answer which was "emu"; so the second letter in my continuing horizintal request to folks like this is "u"...crossword folks will get it). My mother was a single-parent raising me on $8.50 per hour. This kind of corporate/beaurocratic crap has to stop...pronto. Gluttony, in any form, is a deadly sin (if you have to look at it that way instead).
You are getting Verrry Sleepy.....protest with your money and buy imports!Most of them produce cars here in the US, so American workers are still benefitting.
I can only protest with my outraged voice, as I have no money left in 2008(have you guys seen your electric bill this month?)...and Sam Adams counts as a domestic, right?
Wrong, wrong, wrong. First off, labor costs per hour do NOT equal costs per worker per hour. Built into those costs are
a) Health care for all retired employees
b) Retirement benefits for all retired employees.
The average UAW employee is NOT grossing more than $70 per hour.
And, you will note, that less than 10% of the price of the car is labor.
At Merrill Lynch last year, employee compensation was more than SEVENTY PERCENT of their total costs.
And by the way, Honda is on track to lose $1.7 billion for the fiscal year that ends for them on March 31.
The $70+/hr for the (no longer)Big 3 includes the legacy costs. Actual waqges & benefits to current workers is about $10 more than the American factories of the foreign car makers pay.
Also heard on NPR that the total capitalization of GM right now is about $2 billion, Ford about $6 billion, Toyota abour $95 billion. Toyota made around $20 billion last year, and this year for the 1st time in 70 years will post a loss in their auto making, around $2 billion.
I can't believe they are paying college professors that much per year. That is a lot of money for a college professor especially since they most likely haven’t ever worked a day in their life.
Most of the professors I've experienced are just living off of their sheepskins claiming to be great minded people because they've spent their lifetimes chasing degrees.
Perhaps Ford should pay attention to the ongoing 3 year boycot by the AFA and other family groups and stop supporting their homosexual agenda. I will continue to look at Honda or Toyota cars/trucks when it's time to buy.
Moments of Grace hooked together are almost over-whelming to those woo see them, wait til you have grand babies Joe, you havent even started yet. But your on your way. 299 MIllion.
Why can't the public, politicians, and "industry analysts" admit what is obvious? Big 3 will NOT survive! Get over it.
I totally disagree with the fact that the problem lie with the union workers....What about the admin.? They are probley making 10 times this a year! I dont think it is fair to say that they shouldnt make a good living just because they do not have a college degree! It is very expensive to live in America these days...I say more power to them! If anything the big guys should take a pay cut and a big one!
Those auto workers apparently make about as much as a Congresman? That does not seem fair ata all. But then we have teachers and Ed. administrators making big salaries too. Comes the day of reconing for all of them!
you know i to felt the same way as some of you people about the bail outs until i came to Michigan. I started talking to some of the people here. I feel bad for the people. They are people just like me and you just trying to get by and are very afraid of losing their jobs. They have bills to pay and food to put on the table just like you and me and these people are hurting here. I dont know what the solution is but i wish some of you could come to the Detroit area and talk to some of the people that are affected by this fiasco. I would be willing to bet that many of you would also change your mind unless you are like the tin man without a heart. Its not just about the auto workers losing their jobs its about all the other jobs that are in jeaporady that roll down hill from those jobs losses. Many people here are afraid of losing their jobs because of the big 3. Those people are afraid just as you would be if you were about to lose your job. Their family have needs just as yours does. It does'nt matter even who's at fault its about families hurting. Christmas will be really slim for alot of folks because of the economy and job losses around the country. Lets all pray that the economy gets better and people get back to work and this country gets back to being the great county that it once was. It can be again but it will take patience and a lot of work. God bless an Merry Christmas to all!
lalou
All these comments and NOT ONE URL pointing us to the actual Forbes article(source). This could all be B.S. Give us a FORBES URL to back up your original claim. Then I will consider it worth commenting on.
A skeptic up in Mill Bay, Canada
(GRIN).
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