UAW Would Accept More Lower Wage Jobs

Discussion in 'Economics' started by Banjo, Mar 29, 2011.

  1. Banjo


  2. It's a first step.

    Average salary and benefits for a typical UAW grunt is ~80$ per hour. That's 170K a year for some guy that screws on bolts and drives a forklift... Conservatively, that could be halved.

    Then, we can gut ridiculous public sector wages and pensions, which, by most estimates, are double in size of comparable private sector incomes. Public employees ought to get their salaries and benefits cut by at least 50%. Preferably, 60% given the implicit job security and lackadaisical nature inherent in bureaucracy.

    Then, gut the 1 Trillion dollar defense budget, liquidate the GSE's, phase out most entitlements and let the States fend for themselves. Then we can abolish the income tax, IRS, and introduce a low, national sales tax to finance the military, executive, judiciary and national law enforcement.

    Unless drastic action isn't taken within a couple years, America will go bankrupt.
  3. hedge123


    UAW members are overcompensated, no question. I'm curious where you got your ~$80/hour estimate, though. I used to work at a UAW-operated facility (the NUMMI plant, if you're curious -> Toyota decided to shut it down when they got the chance; it was the only union shop under their belt) and the workers there got $30/hour in wages. I was an industrial engineering intern and not in the union, so of course I got paid $18/hour. Whatever. Anyway, the $80/hour seems a bit high. I can imagine that retirees might get this if you add in pension plus realized medical benefits at their age. Please cite a source.

  4. ^In the midst of the 2008 meltdown, a few articles detailed average salaries for UAW guys. "All-in" salaries were between 70-85$ per hour for GM, Ford and Chrysler workers. That figure included hourly wage, vacation, medical and pension. Have no idea where that article is now. If I recall, Toyota was in the mid 60's.
  5. hedge123


    That sounds plausible. I'm not 100% on the current pay for UAW members, but I do know the U.S. automakers have shifted to a two-tier labor market, whereby the "legacy" workers are grandfathered into something similar to their previous pay packages, with the union accepting responsibility for the pension/healthcare, and new workers basically out of the union. I'm sure their average unit labor cost is much closer or below that of Toyota, et. al. by now.
  6. I know this is a broad statement but I was talking to my Detroit auto worker bud (management) today and everything is $12-14 an hour now. Ford and others are busier than last year.

    They hired a qualtiy control person, previously making $30+, (plant closed-lost job) hired in @ $14. Expiditers, logistics all the same story. No one cares what you made. You want a job, here's the rate, take it or leave it.

    The guys with the experience are taking the jobs at the low rate for the health benefits, no other options, too young to retire, med insurance too expensive.
  7. hedge123


    Nutmeg, thanks for sharing the shop talk, so to speak. It's a reality we all must face: basically this country has to compete just like everyone else on this planet that is willing to work for less and do more. I don't get the sense of entitlement from the management nor the line worker. It's up to the each and every one of us.