The headline may be a little misleading but the article is worth reading:<\/p>\n
\nUnion Workers at Big Three Automakers Average $73 an Hour<\/h3>\n
By Pete Winn, Senior Writer\/Editor, CNSNews.com, Tuesday, November 18, 2008<\/p>\n
Economists in Michigan, the long-time home of the auto industry, say they don\u2019t support the proposed multi-billion dollar bailout of Big Three automakers Chrysler, GM and Ford.<\/p>\n
One reason why, they say, is the ultra-high labor costs for union workers employed by the Big Three. It costs over $73 per hour on average to employ a union auto worker, according to University of Michigan at Flint economist Mark J. Perry.<\/p>\n
\u201cIs it right to tax the average worker making $28.50 to bailout workers whose labor cost is over $73 an hour?\u201d Perry asked.<\/p>\n
He explained that in 2006, widely available industry and Labor Department statistics placed the average labor cost for UAW-represented workers at the former DaimlerChrysler at $75.86 per hour. For Ford it was $70.51, he said, and for General Motors it was $73.26.<\/p>\n
\u201cThat includes the hourly pay, plus the benefits they\u2019re receiving and all the other costs to General Motors, Ford and Chrysler, including legacy costs \u2013 retirement costs, pensions, and so on \u2013 so it\u2019s looking at the total labor costs per hour worked for workers,\u201d Perry said.<\/p>\n
For U.S. workers at Toyota, however, the per hour labor cost is around $47.60, around $43 for Honda and around $42 for Nissan, Perry added, for an average of around $44.<\/p>\n
\u201cSo we\u2019re looking at somewhere around a $29 per hour pay gap between the Big Three and the foreign transplants that are producing cars in the United States,\u201d Perry, chairman of the economics department, told CNSNews.com.<\/p>\n
The average union worker at Chrysler, meanwhile, received 150 percent more in compensation than U.S. workers generally.<\/p>\n
\u201cUsing 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,\u201d Perry told CNSNews.com.<\/p><\/blockquote>\n
Bottom line: unless Chrysler, Ford and GM get a handle on their costs any government bailout is just going to delay the inevitable.<\/p>\n","protected":false},"excerpt":{"rendered":"
The headline may be a little misleading but the article is worth reading: Union Workers at Big Three Automakers Average $73 an Hour By Pete Winn, Senior Writer\/Editor, CNSNews.com, Tuesday, November 18, 2008 Economists in Michigan, the long-time home of the auto industry, say they don\u2019t support the proposed multi-billion dollar bailout of Big Three […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[26,7],"tags":[313,166,314,315,323,328],"class_list":["post-1015","post","type-post","status-publish","format-standard","category-economy","category-politics","tag-auto-industry","tag-bailout","tag-chrysler","tag-ford","tag-gm","tag-labor-costs","entry"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pfpI7-gn","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":1026,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/11\/19\/mitt-romney-let-detroit-go-bankrupt\/","url_meta":{"origin":1015,"position":0},"title":"Mitt Romney: Let Detroit Go Bankrupt","author":"Jeff","date":"November 19, 2008","format":false,"excerpt":"Former Massachusetts Governor Mitt Romney has a must read Op Ed on troubles facing Chrysler, Ford and GM in today's New York Times. Let Detroit Go Bankrupt By Mitt Romney, New York Times Op-Ed, Wednesday, November 18, 2008 Boston IF General Motors, Ford and Chrysler get the bailout that their\u2026","rel":"","context":"In "Education"","block_context":{"text":"Education","link":"https:\/\/www.jasetaro.com\/blog\/category\/education\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1539,"url":"https:\/\/www.jasetaro.com\/blog\/2009\/02\/18\/not-just-no-but-hell-no-gm-chrysler-seek-216-billion-in-aid\/","url_meta":{"origin":1015,"position":1},"title":"Not Just No, But Hell No: GM, Chrysler Seek $21.6 Billion in Aid","author":"Jeff","date":"February 18, 2009","format":false,"excerpt":"General Motors and Chrysler have submitted their recovery plans submitted to the U.S. Treasury and are asking for another $21.6 billion in government aid. Not just no, but hell no... No amount of government aid is going to bring them back to profitability so long as the government forces them\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1088,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/12\/11\/will-the-auto-industry-bailout-work\/","url_meta":{"origin":1015,"position":2},"title":"Will The Auto Industry Bailout Work?","author":"Jeff","date":"December 11, 2008","format":false,"excerpt":"I've been so focused on finishing up the projects I'm working before the holidays I've only been half attention to the news recently. I completely missed Holman W. Jenkins Jr. latest Wall Street Journal column: The Bailout That Won't Would you buy a car from Congress? By Holman W. Jenkins\u2026","rel":"","context":"In "Money & Investing"","block_context":{"text":"Money & Investing","link":"https:\/\/www.jasetaro.com\/blog\/category\/money-and-investing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1090,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/12\/11\/mitch-mcconnell-no\/","url_meta":{"origin":1015,"position":3},"title":"Mitch McConnell: No","author":"Jeff","date":"December 11, 2008","format":false,"excerpt":"Senate Minority Leader Mitch McConnell has broken with the White House and come out against the auto industry bailout in a Senate floor speech: \u201cThese are turbulent times for the U.S. economy. Over the past several months, Americans have seen giant companies fail, significant job losses, and, after unprecedented problems\u2026","rel":"","context":"In "Money & Investing"","block_context":{"text":"Money & Investing","link":"https:\/\/www.jasetaro.com\/blog\/category\/money-and-investing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1008,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/11\/17\/wall-street-journal-why-bankruptcy-is-the-best-option-for-gm\/","url_meta":{"origin":1015,"position":4},"title":"Wall Street Journal: Why Bankruptcy Is the Best Option for GM","author":"Jeff","date":"November 17, 2008","format":false,"excerpt":"Today's Wall Street Journal has a must read Op Ed column by Michael Levine. Levine examines the problems faced by GM and explains why seeking chapter 11 bankruptcy protection may GM's best chance for survival. Why Bankruptcy Is the Best Option for GM Chapter 11 would better preserve the valuable\u2026","rel":"","context":"In "Economy"","block_context":{"text":"Economy","link":"https:\/\/www.jasetaro.com\/blog\/category\/economy\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1104,"url":"https:\/\/www.jasetaro.com\/blog\/2008\/12\/12\/treasury-throws-auto-industry-a-life-line\/","url_meta":{"origin":1015,"position":5},"title":"Treasury Throws Auto Industry a Life Line???","author":"Jeff","date":"December 12, 2008","format":false,"excerpt":"Damn! What is it with the Bush administration? Senate Republicans rightly stopped the auto industry bail last night and today the Bush Administration decides to use TARP funds to throw a life line to GM and Chrysler. 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