United Auto Workers members and supporters rallied outside the Detroit Auto Show that’s going on this week in protest against lowering their wages, which are higher than non-unionized assembly plant workers that work at foreign automakers such as Toyota.
Workers and supporters who attended the rally carried placards with slogans such as “I’m not a foreign auto worker”. They also claim that they “work damn hard for their money” and that claims that UAW workers make so much more than foreign competitors is a lie. I think these guys are confusing the whole foreign automaker workers thing. The people who work for foreign automakers also consist of Americans, it’s just that their bosses, or even their bosses’ bosses originate from another country.
Besides the point, even if they want to comparing yourselves with foreign auto workers, does being American have any advantages when it comes to a blue collar worker putting together cars? Are foreign auto workers somehow less adept at doing this and thus deserve to be paid less? Do they deserve less, and you deserve more, simply because you are not “foreign”? If you are so valuable, why are you working on a production line?
They say they love GM as much as everyone else but in September 2007, a year where GM lost an average of US$3.2 billion a month, the UAW launched a massive strike which left 80 GM plants having to shut down, just because GM had failed to meet the UAW’s job security demands during a negotiation. “No one wants to see GM go down the tubes. But we have to keep our standard of living, and GM is going to have to cooperate,” said UAW picketer Jim Brown.
As for the wages, let’s look at some figures.
Some claim the average UAW worker earns only US$28.12 an hour on average (GM reported US$39.68 an hour), but plenty of other costs such as healthcare and retirement benefits push this figure all the way up to US$70 an hour! These benefits include hospital and drug benefits, dental and vision benefits, group life insurance, disability benefits, supplemental unemployment benefits, pension payments during retirement, unemployment compensation and payroll taxes. Chrysler reports a massive US$20 an hour in health benefit costs alone! In 2006, GM paid US$4.9 billion to 291,000 retirees, which ends up being US$31.04 an hour when you divide that sum among current active and working UAW workers.
In 2007, the UAW has already agreed to slash wages (not by a margin that’s enough it seems) and benefits for NEW workers, but the retirees continue going on happily with their massive benefits. Frankly when you look at the numbers it appears that everyone but the people working in the factories are sucking Detroit dry, and the current workers are having to pay for it with pay and benefit cuts! But still, the costs have to go down.
“Why should it always be a race to the bottom? The union has been fighting for these things since the ’30s. Now the senators (from the Southern states) want us to make what the workers make for the Japanese companies. Why wouldn’t they want to raise their salaries instead of lowering ours?,” says UAW representative Mike Bartnick.
A union cannot continually go on forcing an artificially high labor rate when the rest of the world works on an open market. The costs and prices of competitors’ products will continue to drop, and to remain competitive, if labor costs cannot go down, the cuts will have to be made elsewhere, such as R&D (technology) and quality. And that’s what brought GM and Chrysler to where they are today.
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UAW are selfish lot that thinks only for themselves without much consideration on total benefit to the industries. There is a person in Malaysia with similar mentality to these UAW > the CUEPACS president!
Hai,
Its difficult to say it out loud actually. Let us take an example, imagine if our (Malaysia) working salary is to be standardized with other foreign workers (Indonesia, India, Pakistan, Nepal and etc.). I’m sure not even one of us could afford to buy a second hand Kancil!
But I can see your point Paul, if UMW workers are mostly consists of local workers (Americans) then, the other companies Daimler, Ford and GM are sure damn generous with their pay slips! We can’t entirely blame Daimler, Ford and GM; who doesn’t want a higher salary please raise your hand? Then again, now that the company has been bailed out by the US Government, they should cut down at least some of these budgets. Hey, at least they still can keep their jobs. And please do not aim the blue collar workers only, those overpaid CEO should be blamed as well.
But, these 3 gigantic companies must cut down any unnecessary cost. I can see, they even provide “dental care” benefit. Perghhh! They aren’t much of these benefits offered by the private sectors in Malaysia.
Alas, these Americans should be sent over here in Malaysia to see how they could cope up with our Malaysian low wages and higher working-load conditions.
common-sensor said,
January 12, 2009 @ 5:37 pm
UAW are selfish lot that thinks only for themselves without much consideration on total benefit to the industries. There is a person in Malaysia with similar mentality to these UAW > the CUEPACS president!
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Of course, CUEPACS is a union. Union people think alike, I guess.
But I see why the UAW is fussing over this problem, since the blue collar workers who are currently working in the factories have to bear the brunt of the economic meltdown, whereas the retirees and the fat cats upstairs have contributed little to help save the company, from what I understand of this article. Why can’t they slash evenly and fairly from top to bottom?
Secondly, I think it’s time for GM, Chrysler and, to a lesser extent Ford, to start expanding their horizon, in that they should think global in creating their cars, not just the American market. Sure the market there is huge, but with Americans flocking to the Japanese carmakers with their frugal and environmentally friendly cars, where else can they market their cars? Toyota and the rest are successful because their cars are suitable wherever they’re marketed. Take a Toyota Camry and use it either in Japan or M’sia or India or Europe or America and it will fit right in, whereas if you use a Caddy here in Malaysia, it wouldn’t be as practical. I believe that it’s time for them to make a paradigm shift, before they lose more money, and ultimately head towards bankruptcy & the end.
watever !!!
Never mind. After what US did to Palestine. Let all big 3 go down is good enough for me. Let there be beggers in the richest coutnry in the world!
SY0H: its UAW, United Auto Workers, not UMW
Owh thanks, typing error.
Apa ada dalam neraka??? USD75.86 per hour??? At current exchange of USD1 to RM3.57, that is about RM270.94 per hour!!!! Which means if you worked in a 8hour shift, that is RM2167.49 per day!!! That is more than most of us make in a month for heaven sake… No wonder the Detroit Big 3 is in a deep pile of manure now… And the best part is, for that amount of money being paid to them, they still produce crappy cars…. Well, better being paid huge salary now cause by year ends, they might all be out of work. Wonder if they will ask the same amount of salaries from foreign company? ;)
Alo bro kingbrutal,
dont easyly multiply USD75.86/hour to RM. Their living cost and our living cost its different. To make it same, just assume that RM75.86/hour (still high damn s**t.)
I think, most of their workers have more than 10yrs xperience. In Japan nissan, average worker is 22yrs experience (imagine bro!!). So what do you think about their wages?. Same like 20yrs ago?
Further more, their brand name is crysler, ford n GM, is it same with others? more higher rite?
I was in Japan nissan this year. Imagine bro, Senior Foreman can afford GTR and their line foreman with Elgrand. Wat u think their salary?
Yes, their being paid with huge salary, but even 1 min is count wheter benefit to company or not. Crazy man if cant even stop even minute. Their life being counted!!
yea…but USD75/hr including perks is extremely high for an average US citizen. if i was GM..i’ll just shut the plants down and do a mass recruitment again and weaken the union by at least 1/3.
i’d move all production to europe, better quality and lower pay
hi moveJJE…
Even though I agreed with your points (mostly :D)… you seem to misunderstood my intention. I was merely saying that their hourly rate is ridiculous. If we talked in USD, people might not understand the extend of this outrageous claim, that’s why I converted it into RM… And as PT outlined, the rate is high compared to other industry.
BTW, since when are GM, Chrysler and Ford is considered higher ‘name’??? LOL… that is funny… ;)
kingbrutal said,
January 13, 2009 @ 7:07 pm
hi moveJJE…
Even though I agreed with your points (mostly :D)… you seem to misunderstood my intention. I was merely saying that their hourly rate is ridiculous. If we talked in USD, people might not understand the extend of this outrageous claim, that’s why I converted it into RM… And as PT outlined, the rate is high compared to other industry.
BTW, since when are GM, Chrysler and Ford is considered higher ‘name’??? LOL… that is funny…
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in malaysia, volkswagen is a luxury car