Free Republic
Browse · Search		 News/Activism
Topics · Post Article

Skip to comments.

Labor Costs to Skyrocket for American Cars
Washington Free Beacon ^ | 11/23/15 | Bill McMorris

Posted on 11/23/2015 5:20:38 AM PST by markomalley

New union contracts negotiated at American auto manufacturers will lead to a spike in labor costs after years of belt tightening.

The United Auto Workers approved significant contract adjustments at Ford and General Motors on Friday after months of tense negotiations. Those decisions—one by membership vote, the other by union leadership—come soon after Fiat Chrysler approved a new deal with dramatic pay boosts. Each of the contracts could reverse “much of the savings achieved by the companies over the last eight years,” according to a study first published in the Wall Street Journal.

The new GM deal would raise labor costs from $55 to $60 an hour, a 9 percent hike, according to a study of the deals from Kristin Dziczek of the Center for Automotive Research and Art Schwartz, a former GM labor executive and president of Labor and Economic Associates. The union contract at Ford also reached the $60 hourly rate over the next four years, a 5 percent increase from its current rate of $57. Those hike pales in comparison with Chrysler, where average hourly wages will spike nearly 20 percent from $47 to $56.

The Detroit automakers were forced to impose labor cuts in the wake of the 2008 recession that led to a multi-billion dollar taxpayer bailout of GM, which entered bankruptcy, and Chrysler, which was sold to Fiat. Ford turned down bailout assistance.

The new contracts would reverse many of the pay freezes adopted to control costs, as well as offset the tiered payment systems that allowed the automakers to hire new employees at lower pay and benefits than previous generations of union members.

Edward Niedermeyer, an auto epert who has closely followed UAW negotiations, told the Washington Free Beacon that the talks have ended up splintering workers, while driving up labor expenses at a fragile time. American-owned companies can afford short-term hikes because of high demand and large profitability of SUVs and trucks—classes of vehicles that are vulnerable to global fuel prices, which have been steadily falling.

“Workers better make smart investments with their new wage and bonus increases, because they come at the cost of their long-term position. They’ve weakened their long-term job security and they’ve failed to bandage the festering wound that is two-tier wages,” Niedermeyer said.

The union ran into snags getting the deal approved by its membership at GM and Ford plants. At GM overall membership approved the new contract 55-45, but skilled workers voted down the deal by a significant margin.

“Following receipt of these ratification results, meetings were held with the UAW skilled trades membership at each GM worksite in order to determine the issues for their rejection of the tentative agreement. Based on this feedback from the skilled trades membership, I have determined that further discussion with the company was needed,” Dennis Williams, the union’s president, said in a Nov. 13 press release.

After meeting with the company and skilled workers, the UAW executive council announced that it would ratify the new contract on Friday. Hours later, UAW membership at Ford narrowly voted to approve its deal.

“The voice of the majority has secured a strong future that will provide job security and economic stability for themselves and their families,” Williams said in a release.

Niedermeyer said that economic stability is largely dependent on gas prices and lending rates remaining low—something that may not be true in the future. Spiking labor costs only a few years into economic recovery could bring about the same conditions that led to the collapse of American auto manufacturing in the first place.

“This is a cyclical business, and the UAW has prioritized maximizing its position now at the risk of losing out big in the next downturn,” Niedermeyer said.

TOPICS: Business/Economy
KEYWORDS:
Navigation: use the links below to view more comments.
first previous 1-20 ... 41-60, 61-80, 81-100, 101-104 next last
To: DoodleDawg
Totals on this page reflect donations from employees of the organization, its PAC and in some cases its own treasury. These totals include all campaign contributions to federal candidates, parties, political action committees (including super PACs), federal 527 organizations, and Carey committees. The totals do not include contributions to 501(c) organizations, whose political spending has increased markedly in recent cycles. Unlike other political organizations, they are not required to disclose the corporate and individual donors that make their spending possible. Only contributions to Democrats and Republicans or liberal and conservative outside groups are included in calculating the percentages the donor has given to either party.

NOTE: Federal law prohibits the use of contributor information for the purpose of soliciting contributions or for any commercial purpose.

 

Election cycle:

Toggle percentages

 

Rank

Organization

Total Contributions

To Dems & Liberals

To Repubs & Conservs

Pct to Dems & Liberals

Pct to Repubs & Conservs

1

Service Employees International Union

$224,273,550

$222,520,804

$1,294,169

99%

1%

2

ActBlue

$194,439,211

$193,985,073

$59,727

100%

0%

3

American Fedn of St/Cnty/Munic Employees

$94,708,977

$93,739,954

$671,755

99%

1%

4

National Education Assn

$93,656,468

$89,590,047

$3,192,344

97%

3%

5

Fahr LLC

$80,409,603

$80,409,603

$0

100%

0%

6

American Federation of Teachers

$70,769,128

$69,987,011

$348,050

100%

1%

7

Las Vegas Sands

$70,417,242

$30,950

$70,379,411

0%

100%

8

Carpenters & Joiners Union

$70,069,398

$65,240,497

$4,682,026

93%

7%

9

National Assn of Realtors

$69,556,807

$24,973,895

$26,678,035

48%

52%

10

Intl Brotherhood of Electrical Workers

$66,273,173

$65,000,555

$997,418

99%

2%

11

United Food & Commercial Workers Union

$64,072,657

$63,589,291

$306,750

100%

1%

12

AT&T Inc

$62,395,194

$26,064,645

$36,178,562

42%

58%

13

Laborers Union

$58,350,719

$50,642,172

$3,479,566

94%

6%

14

Perry Homes

$55,513,249

$22,300

$55,220,949

0%

100%

15

Goldman Sachs

$54,453,925

$28,376,553

$25,992,022

52%

48%

16

American Assn for Justice

$49,343,405

$45,745,238

$3,452,317

93%

7%

17

AFL-CIO

$46,919,763

$45,364,095

$1,135,676

98%

2%

18

Soros Fund Management

$46,644,808

$45,511,318

$1,090,450

98%

2%

19

Contran Corp

$46,091,117

$655,868

$45,333,099

1%

99%

20

Plumbers/Pipefitters Union

$45,314,065

$41,043,291

$1,517,870

96%

4%

21

United Auto Workers

$44,540,584

$43,606,279

$233,380

100%

1%

22

Communications Workers of America

$44,279,765

$43,850,787

$237,790

100%

1%

23

Teamsters Union

$43,283,858

$40,830,506

$2,122,448

95%

5%

24

Adelson Drug Clinic

$43,006,118

$20,000

$42,994,018

0%

100%

25

Newsweb Corp

$40,350,521

$39,959,271

$251,250

99%

1%

26

EMILY's List

$38,960,245

$38,664,879

$4,794

100%

0%

27

Renaissance Technologies

$36,896,127

$7,659,966

$29,196,074

21%

79%

28

United Parcel Service

$36,438,428

$12,961,233

$23,416,655

36%

64%

29

Citigroup Inc

$36,245,564

$17,266,852

$18,579,303

48%

52%

30

JPMorgan Chase & Co

$35,675,167

$16,897,267

$18,677,045

48%

53%

31

American Bankers Assn

$35,392,446

$12,310,296

$22,976,625

35%

65%

32

National Auto Dealers Assn

$35,227,985

$11,164,211

$24,049,774

32%

68%

33

Sheet Metal Workers Union

$34,885,391

$34,154,806

$608,585

98%

2%

34

Blue Cross/Blue Shield

$34,235,758

$12,495,442

$21,692,990

37%

64%

35

Machinists/Aerospace Workers Union

$33,910,938

$33,335,147

$403,791

99%

1%

36

Elliott Management

$33,809,998

$137,360

$33,540,488

0%

100%

37

National Assn of Letter Carriers

$33,678,576

$24,896,799

$2,431,475

91%

9%

38

National Beer Wholesalers Assn

$33,055,541

$11,872,716

$21,161,075

36%

64%

39

Microsoft Corp

$33,043,368

$18,365,752

$14,571,649

56%

44%

40

Victory Campaign 2004

$33,038,925

$33,038,925

$0

100%

0%

41

American Medical Assn

$32,950,717

$13,204,935

$19,690,882

40%

60%

42

Operating Engineers Union

$32,466,960

$28,011,016

$4,373,594

87%

14%

43

General Electric

$32,211,821

$15,024,023

$17,138,366

47%

53%

44

Lockheed Martin

$31,247,085

$13,239,136

$17,965,568

42%

58%

45

Bank of America

$30,833,206

$12,642,197

$18,154,452

41%

59%

46

United Steelworkers

$30,352,363

$19,961,909

$78,600

100%

0%

47

National Assn of Home Builders

$30,030,505

$10,149,390

$19,849,365

34%

66%

48

Bloomberg Lp

$29,983,536

$11,544,433

$725,627

94%

6%

49

Koch Industries

$29,519,116

$1,717,198

$27,890,922

6%

94%

50

American Dental Assn

$29,427,233

$10,744,636

$13,472,966

44%

56%

51

Morgan Stanley

$29,264,245

$12,651,050

$16,555,910

43%

57%

52

Verizon Communications

$29,153,366

$11,729,226

$17,323,826

40%

60%

53

Deloitte LLP

$28,555,326

$10,230,766

$18,258,431

36%

64%

54

International Assn of Fire Fighters

$28,458,881

$24,119,576

$4,221,205

85%

15%

55

Credit Union National Assn

$27,684,074

$13,397,970

$14,218,520

49%

52%

56

Ernst & Young

$27,561,058

$11,296,889

$16,107,932

41%

59%

57

Comcast Corp

$26,146,535

$14,602,386

$11,399,896

56%

44%

58

Time Warner

$25,795,246

$19,317,056

$6,296,594

75%

25%

59

PricewaterhouseCoopers

$25,602,575

$9,250,072

$16,296,729

36%

64%

60

American Hospital Assn

$25,323,202

$13,286,902

$11,993,254

53%

47%

61

Shangri-La Entertainment

$25,285,583

$25,277,633

$7,950

100%

0%

62

Boeing Co

$25,178,381

$11,662,584

$13,484,867

46%

54%

63

NextGen Climate Action

$25,074,615

$25,074,615

$0

100%

0%

64

Honeywell International

$25,022,293

$10,859,813

$14,138,500

43%

57%

65

UBS AG

$24,852,904

$10,093,823

$14,539,806

41%

59%

66

Democratic Governors Assn

$24,303,538

$20,204,538

$0

100%

0%

67

Ironworkers Union

$24,095,933

$22,914,063

$1,119,370

95%

5%

68

Northrop Grumman

$23,283,984

$9,946,746

$13,273,809

43%

57%

69

Union Pacific Corp

$23,057,938

$6,400,089

$16,653,164

28%

72%

70

Air Line Pilots Assn

$22,720,793

$18,427,543

$4,247,250

81%

19%

71

AFLAC Inc

$22,185,661

$9,618,951

$12,583,215

43%

57%

72

Club for Growth

$22,061,524

$114,519

$21,684,540

1%

100%

73

Pfizer Inc

$21,946,163

$7,757,637

$14,162,036

35%

65%

74

National Rifle Assn

$21,927,085

$3,832,742

$18,075,095

18%

83%

75

National Assn of Insurance & Financial Advisors

$21,783,074

$8,957,530

$12,800,044

41%

59%

76

National Air Traffic Controllers Assn

$21,742,804

$17,824,004

$3,892,800

82%

18%

77

American Postal Workers Union

$20,878,639

$19,592,051

$507,480

98%

3%

78

Altria Group

$20,534,120

$6,335,879

$14,203,787

31%

69%

79

New York Life Insurance

$20,347,881

$9,984,398

$10,358,853

49%

51%

80

Credit Suisse Group

$20,306,475

$8,486,377

$11,780,398

42%

58%

81

Raytheon Co

$20,284,150

$8,698,631

$11,523,857

43%

57%

82

Akin, Gump et al

$20,074,428

$12,728,618

$7,311,335

64%

37%

83

National Rural Electric Cooperative Assn

$19,441,177

$8,757,846

$10,664,081

45%

55%

84

Pharmaceutical Product Development Inc

$19,139,311

$3,000

$24,605,701

0%

100%

85

City of New York, NY

$19,104,269

$15,943,861

$752,059

96%

5%

86

Chartwell Partners

$19,005,228

$232,700

$18,724,828

1%

99%

87

American Financial Group

$18,755,016

$2,231,079

$16,546,851

12%

88%

88

General Dynamics

$18,754,106

$8,530,811

$10,155,983

46%

54%

89

United Transportation Union

$18,726,795

$16,404,729

$2,242,546

88%

12%

90

American Institute of CPAs

$18,358,395

$7,629,544

$10,695,551

42%

58%

91

Chevron Corp

$18,337,183

$3,343,481

$14,951,169

18%

82%

92

National Cable & Telecommunications Assn

$17,892,484

$8,465,285

$9,385,549

47%

53%

93

Wal-Mart Stores

$17,828,261

$6,176,846

$11,639,377

35%

65%

94

Exxon Mobil

$17,568,663

$2,333,270

$15,193,978

13%

87%

95

Anheuser-Busch InBev

$17,415,865

$7,902,337

$9,491,664

45%

55%

96

Wells Fargo

$17,367,746

$6,087,239

$11,235,666

35%

65%

97

Republican Governors Assn

$17,363,969

$850

$16,382,021

0%

100%

98

TRT Holdings

$17,361,862

$13,150

$17,348,712

0%

100%

99

FedEx Corp

$17,149,229

$6,535,364

$10,601,440

38%

62%

100

Amway/Alticor Inc

$17,114,190

$63,835

$17,266,360

0%

100%

61 posted on 11/23/2015 6:35:34 AM PST by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
[ Post Reply | Private Reply | To 42 | View Replies]
To: kjam22
RE :”I'm like Trump. I want to make America great again. Imagine a slogan.... “MAKE AMERICA GREAT AGAIN... BUY TOYOTA”
Really??? “

If it wasn't for companies like Toyoda American companies would still be making Ford Pinto quality cars. Who needs terrorists when your car blows up from being tapped in the rear.

If he wants to make American great again he should get them to make better cars and to stop being so greedy.

62 posted on 11/23/2015 6:36:57 AM PST by sickoflibs (Donald Trump : 'It will be wonderful. It will be glorious., You will be amazed, Just wait"')
[ Post Reply | Private Reply | To 58 | View Replies]
To: kjam22
I'm like Trump. I want to make America great again. Imagine a slogan.... "MAKE AMERICA GREAT AGAIN... BUY TOYOTA" Really???

Actually, it's "Make America Great Again - Kill the UAW".

63 posted on 11/23/2015 6:39:05 AM PST by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
[ Post Reply | Private Reply | To 58 | View Replies]
To: DoodleDawg

If you read the rest of my post you would see I don’t buy from them either. I drive a ‘97 town car and I’ll drive that big boy just as long as I can! :)


64 posted on 11/23/2015 6:39:10 AM PST by conservativegamer
[ Post Reply | Private Reply | To 42 | View Replies]
To: sickoflibs
American unions never learn. They will expect another government bailout in the future.

They expect to leech off the patriotic feeling of fellow Americans who don't understand that the UAW is what the Mafia would be if the Mafia wielded real power and could ride roughshod over the interests of the average American.

65 posted on 11/23/2015 6:42:45 AM PST by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
[ Post Reply | Private Reply | To 29 | View Replies]
To: Zhang Fei
Freepmail me your address. I'll make a bumper sticker for you and send it to you. "MAKE AMERICA GREAT AGAIN... BUY TOYOTA"
66 posted on 11/23/2015 6:43:12 AM PST by kjam22
[ Post Reply | Private Reply | To 63 | View Replies]
To: markomalley

Whats good for unions is bad for Americans...always.


67 posted on 11/23/2015 6:44:14 AM PST by rrrod (just an old guy with a gun in his pocket.l)
[ Post Reply | Private Reply | To 1 | View Replies]
To: billyboy15
Agreed.

Unfortunately, companies like GM will compromise on quality and quality is not immediately obvious.

BTW, GM’s quality is very poor. I know from personal experience.

68 posted on 11/23/2015 6:45:26 AM PST by dhs12345
[ Post Reply | Private Reply | To 10 | View Replies]
To: billyboy15
If American car mfg costs get out of hand so too will the selling price of their product.

The the Feds swoop in and bail them out at taxpayer expense. I have no problem with free negociations for unionized labor but if the company makes a bad deal, don't come to me to make it right.

69 posted on 11/23/2015 6:47:15 AM PST by super7man (Oh why did I post that, now I'll never be able to run for Congress.)
[ Post Reply | Private Reply | To 10 | View Replies]
To: driftdiver
Great, car prices are gonna keep going up.

Not only are labor costs going up, but the EPA and NHTSA will never stop forcing new regulations on car makers, which will add to new car prices as well.

70 posted on 11/23/2015 6:49:06 AM PST by Fresh Wind (Falcon 105)
[ Post Reply | Private Reply | To 2 | View Replies]
To: wrench
Wait a second. GM has been screwing us for years. They wave the American flag while ripping off the American consumer. How un-American is that — to use our pride in America to sell their POS cars.
71 posted on 11/23/2015 6:49:16 AM PST by dhs12345
[ Post Reply | Private Reply | To 45 | View Replies]
To: kjam22
Freepmail me your address. I'll make a bumper sticker for you and send it to you. "MAKE AMERICA GREAT AGAIN... BUY TOYOTA"

If you Freepmail to me yours, I'll send you a bumper sticker that says "Make America Great Again - Pay the UAW $60/hr".

72 posted on 11/23/2015 6:50:00 AM PST by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
[ Post Reply | Private Reply | To 66 | View Replies]
To: sickoflibs
My 93 4Runner, 210Kmiles, and no major repairs. Oh, the airconditioner had to be upgraded to the new, non-CFC, version. But that was an EPA requirement and the repair would have been a lot simpler if it had freon based.
73 posted on 11/23/2015 6:53:34 AM PST by dhs12345
[ Post Reply | Private Reply | To 48 | View Replies]
To: eastforker
That is labor cost, not employee pay. That is the thinking of most of Americans. That $15 min wage for a burger flipper cost the employer about $30-$40 an hour after payroll taxes, workers comp, uniforms, insurance and other benefits.

That's incorrect. The typical bump is about 50%, max. Meaning $15 translates to $22.50. And that's for a large corporation with good benefits, not Mickey D bennies.

74 posted on 11/23/2015 6:54:21 AM PST by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
[ Post Reply | Private Reply | To 49 | View Replies]
To: markomalley

Does the hourly include their medical ?


75 posted on 11/23/2015 6:56:07 AM PST by moehoward
[ Post Reply | Private Reply | To 1 | View Replies]
To: markomalley

When there are so many “0% for 72 months” deals available out there, I know the auto industry is in trouble. I believe I’ve even seen a 0% for 75 months advertised on TV.


76 posted on 11/23/2015 6:59:53 AM PST by moovova
[ Post Reply | Private Reply | To 1 | View Replies]
To: kjam22
GM builds crap. I owned an 86 Transamm that was the biggest POS ever.

We bought it new and the damn thing was falling apart when the 12Kmile warranty expired. It stalled out numerous times and almost caused several accidents.

Then the dealership gave us the middle finger when the warranty expired. The POS was possessed.

If the dealership had been more reasonable, I wouldn't have been as angry. BTW, that was almost 30 years ago and I WILL NEVER FORGET!

77 posted on 11/23/2015 7:00:49 AM PST by dhs12345
[ Post Reply | Private Reply | To 17 | View Replies]
To: sickoflibs

Spot on!


78 posted on 11/23/2015 7:01:48 AM PST by dhs12345
[ Post Reply | Private Reply | To 62 | View Replies]
To: markomalley
We buy Hyundai and Kia. Well made cars made in America by non-union workers who make a living wage and have greater buying power than union workers.
79 posted on 11/23/2015 7:02:30 AM PST by AlaskaErik (I served and protected my country for 31 years. Progressives spent that time trying to destroy it.)
[ Post Reply | Private Reply | To 1 | View Replies]
To: kjam22

Yet mooselimbs kill people like crazy and you still buy their oil! OK.


80 posted on 11/23/2015 7:05:01 AM PST by US_MilitaryRules (The last suit you wear has no pockets!)
[ Post Reply | Private Reply | To 12 | View Replies]

Navigation: use the links below to view more comments.
first previous 1-20 ... 41-60, 61-80, 81-100, 101-104 next last

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search		 News/Activism
Topics · Post Article
FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson