You can’t pay more than the wealth your position generates, not if you want the business to stay in business.
If the wage has fallen, it’s because the value of your position has also fallen. The automakers and the union would be better off to try and figure how to improve the productivity of each position in order to pay more.
“The automakers and the union would be better off to try and figure how to improve the productivity of each position in order to pay more.”
The auto industry is very efficient.
The problem is that federal regulations have made cars very complex. To pay fair wages the vehicles meeting those regulations are going to be expensive.
The automakers are also having EV tooling costs as well as taking on high EV product risks.
Exactly. A salary isn’t a gift, it’s not what you think you deserve. It is fraction of what your work earns the company.
While there is no universally defined percentage for a “good” Payroll to Revenue Ratio, a commonly cited guideline is that labor costs should ideally account for 15-30% of total revenue.