Should we really bailout Big Three automakers with $73.20 per hour labor compared to Toyota’s $48.00 per hour labor compared to $31.59 per hour for all other goods-producing labor in the U.S.?
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The chart above shows average hourly compensation for the Big Three ($73.20) and Toyota (TM) ($48.00), compared to average hourly compensation for Management and Professional Workers ($47.57), Manufacturing/Goods Producing ($31.59) and all workers ($28.48), data available here.
Should U.S. taxpayers really be providing billions of dollars to bailout companies (GM (GM), Ford (F) and Chrysler) that compensate their workers 52.5% more than the market (assuming Toyota wages and benefits are market), 54% more than management and professional workers, 132% more than the average manufacturing wage, and 157% more than the average compensation of all American workers?
Maybe the country would be better off in the long run if we let the Big Three fail, and in the process break the UAW labor monopoly, and then let Toyota, Honda (HMC) and Volkswagen (VLKAY.PK) take over the U.S. auto industry, and restore realistic, competitive, market wages to the industry. It might be the best long-run solution.
http://www.wsws.org/articles/2003/oct2003/uaw-o01.shtml
This article (yes, consider the source) was written in 2003. At that time, according to the article, nearly 50% of the UAW workforce would be eligible to retire within 5 years, which would be just about . . . now.
50$ !!!
Plus UAW gave up 50,000 jobs in its last contract negotiation.
The point is how can the Rats stand up and say this is about jobs? It’s not about jobs. It’s about paying the union’s bills for pensions and healthcare for all its retirees.
The proposed bailout of $25B will use about $12B just to pay retiree benefits-—IOW, the bailout will give $12B to people who DO NOT HAVE AUTO INDUSTRY JOBS (because they are retired). Jobs? This is NOT about jobs.
It’s about the Rats making good on their payback to the unions because UAW knew by 2003 that the Big 3 would not be around much longer to pay into its benefits fund.
Indeed it would. The expansion these companies will have to make plus any other multi-national companies that move in will pick up the unemployed workers.
GM, Ford, Chrysler aren’t really “American” companies anymore anyway, they are multi-nationals, and part-out to other countries most of the component manufacturing anyways.