full story
Here we go again, both the American taxpayer as well as the UAW get the shaft again!
In reality, the American taxpayer has been getting the shaft at the hands of the UAW. The UAW is to blame in large part for the failings of the American automakers, and American taxpayers have had to foot the bailout bill. In 2008, the average hourly wage of all private sector workers was $25.36, while the average hourly wage for Ford workers was $70.51, for GM workers $73.62, and Daimler-Chrysler workers $75.86. The UAW has had such a controlling grip over the American automakers for the last few decades that they don't even realize that they are the ones responsible for driving the industry to bankruptcy. Grossly overpaying workers for making a sub-standard product. An assembley line job, in no way, is worth $70+ an hour. Look at it in real numbers: If you annualize Chrysler’s labor cost of $75.86 an hour per worker over a 35-hour week, for 50-weeks a year, the yearly compensation comes in at almost $133,000 per worker per year. You're telling me that appropriate compensation for someone who welds door panels on to cars, or inserts dash boards on an assembley line is more than $130,000 a year? Of course the production plants are moving to Mexico. They can pay their workers less, and not have to worry about the ultra-rigid production/pollution standards in the US. It makes perfect sense.
Likewise, of course the Asian based companies can flourish in the US, they make a far better, long-lasting product than do their American counterparts, and they pay their workers a far more realistic wage. For U.S. workers at Toyota, the per hour labor cost is around $47.60, around $43 for Honda and around $42 for Nissan, for an average of around $44. So we’re looking at somewhere around a $29 per hour pay gap between the Big Three and the foreign companies that are producing cars in the United States. Its not rocket science here.
And as far as the UAW is concerned, they're just trying to maximize their their profits at the cost of their workers. If they hadn't been so demanding over the years, the failure of these companies and subsequent plant closings would likely not have been necessary. So, the UAW goes to bat for their workers, yet doesn't realize that those greedy efforts to get compensation for their workers that doesn't accurately represent their worth has driven the Auto companies to lay-off a large portion of said workers, and have had to be bailed out by the American taxpayer. Its silly.
And to those who would argue that it is the Union's job to look out for their workers, I would submit to you that the average union worker at Chrysler, received 150 percent more in compensation than U.S. workers generally. Using Bureau of Labor Statistics numbers, the average compensation for manufacturing workers is around $31.50, and the average hourly compensation, including benefits, for the average worker in the U.S. economy is around $28.50. It makes no sense. What does make sense is automakers not taking any more of the UAW dominance over them, and moving to a place where it is far easier to conduct business, getting back to a place where they can provide their product to the American public at a reasonable cost, with the ability to, themselves, turn a profit.
http://www.heritage.org/static/reportimages/95CFB030977DAD5D332E566EC7B976F6.gif
http://www.cnsnews.com/public/content/article.aspx?RsrcID=39499