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Auto bailout
#17
You make a good argument Daryn. I do not agree with this.

Now enter the United Auto Workers and you have kids out of high school making $50k per year with little or no skillset.

I'm quite sure there is a apprentice/ training period as with all trade jobs. Typically the starting salary is much lower then top pay. Which it is necessary to complete to receive top pay.

From what you posted and what I have read, I believe there is a middle ground as to where the truth lies.

Being a Union worker and having worked non- union as well I know what is better for me. I'm Proud to be a union worker, and I'll be the first to tell you we have are bad apples at times. But they are nothing compared to the bad ones I've seen on the other side of the fence.

From UAW's website:

    
Wages and labor costs How many UAW members work at the companies that will be a part of this year’s auto talks?
There are 180,681 UAW members employed at Chrysler, Ford and General Motors. Of these, 177,498 are covered by the national agreements that will expire Sept. 14, 2007. The remaining 3,183 UAW members at Chrysler Jeep in Toledo, Ohio, negotiate a local contract distinct from the national agreement. Certain Delphi employees who have rights under the GM Benefit Guarantee also will be affected by the outcome of these negotiations.
An additional 419,621 retired members and 120,723 surviving spouses will also be covered by the agreements negotiated this year. Their pension payments and retiree health care benefits are subject to the terms of the UAW national auto industry agreements.
Employer
Active members
Retired members
Surviving spouses
Totals
Chrysler*
48,927
55,183
23,252
127,362
Ford**
58,300
94,824
28,183
181,307
General Motors
73,454
269,614
69,288
412,356
Totals
180,681
419,621
120,723
721,025
* Includes workers at Chrysler Jeep, Toledo, Ohio
** Ford active total includes 7,180 workers at Automotive Components Holdings
Source: United Auto Workers based on company data. Figures are for the end of the first quarter 2007
How much are current UAW auto industry wages?
In 2006 a typical UAW-represented assembler at GM earned $27.81 per hour of straight-time labor. A typical UAW-represented skilled-trades worker at GM earned $32.32 per hour of straight-time labor. Between 2003 and 2006, the wages of a typical UAW assembler have grown at about the same rate as wages in the private sector as a whole – roughly 9 percent. Part of that growth is due to cost-of-living adjustments that have helped prevent inflation from eroding the purchasing power of workers’ wages.
What is the compensation for auto industry executives?
The CEOs of Chrysler Group, Ford and GM earned a combined total of $24.5 million in salaries, bonuses and other compensation in 2006.
The next four highest paid executives received average salary and other compensation of $1.3 million at Ford and $1.4 million at GM. These substantial sums do not include the value of stocks and stock options that were also part of executive compensation.
Why is the figure cited as hourly labor costs by the companies so much higher than the wage rates?
In addition to regular hourly pay, the labor cost figures cited by the companies include other expenses associated with having a person on payroll. This includes overtime, shift premiums and the costs of negotiated benefits such as holidays, vacations, health care, pensions and education and training. It also includes statutory costs, which employers are required to pay by law, such as federal contributions for Social Security and Medicare, and state payments to workers’ compensation and unemployment insurance funds. The highest figures sometimes cited also include the benefit costs of retirees who are no longer on the payroll.
How much value do UAW members contribute to their employers?
American autoworkers are among the most productive workers in the world. According to the U.S. Census Bureau, the typical autoworker produces value added worth $206 per worker per hour.[sup]1[/sup] This is far more than he or she earns in wages, even when benefits, statutory contributions and other costs are included.
How much are labor costs in relation to the total price of a new vehicle?
The total labor cost of a new vehicle produced in the United States is about $2,400,[sup]2[/sup] which includes direct, indirect and salaried labor for engines, stamping and assembly at the automakers’ plants.
This represents 8.4 percent of the typical $28,451[sup]3[/sup] price of a new vehicle in 2006. The vast majority of the costs of producing a vehicle and transporting it to a dealership and preparing it for sale – including design, engineering, marketing, raw materials, executive compensation and other costs – are not related to direct or indirect manufacturing labor.
 
[Image: 02_chart.gif]
[sup]1[/sup] U.S. Census Bureau, Annual Survey of Manufactures 2005 data
[sup]2[/sup] UAW Research Department, based on hours-per-vehicle data from the 2007 Harbour Report and labor costs as reported in the companies’ 10-Ks
[sup]3[/sup] National Automobile Dealers Association
________________________________________________________________
What's the point in arguing or trying to make sense of something that is lost?
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