Check out this Washington Post Story.
To briefly highlight its’ content…
The U.S. automakers are seeking to get their hands on some of the $700 billion bailout money that the legislative and executive branches of government shoved down our throats.
To quote the article, “In recent weeks, top auto industry executives have been making the rounds in Washington, trying to shake loose federal cash all over town. Both GM and Ford posted big losses yesterday as the car companies continued to pay out in salaries and other expenses more than they are taking in from sales.”
Growing up in a state dominated by the auto industry, this has been coming for the past 35 years.
Lets look at the average auto worker.
Wages: From U.A.W: Average auto worker $28.71/hr ($60K/yr). According to Workers Comp Insider, the typical auto worker gets five weeks vacation and 17 holidays a year…but no sick time…it has to be used as vacation time.
From Bloomberg ” Under a four-year accord reached Sept. 26 (2007), all new employees would start in so-called non-core jobs such as janitorial and maintenance work and make about $28 an hour in pay and benefits, compared with $51 for present employees, the people said. They asked not to be identified because contract details haven’t been released.
For you business savvy people, this is labor and labor burden (The costs, above and beyond gross compensation, that an employer incurs in order for an employee to perform the work he was hired to do).
This cost per vehicle for wages per vehicle according to the U.A.W. itself: $2400
Health Care : $0 + co-pays. (USA Today) The cost of this benefit adds $1,100 to $1,500 to every vehicle made by U.S. Auto workers. They pay nothing out of their paychecks for health care.
This whole industry has been failing for decades and they have failed to adequately modernize their plants, keep wages even close to controllable levels and keep with the the full efficiency needs of this nation.
Now they want money to bail them out of their trouble because the companies are failing to bring in more than they are spending.
I would love to know what they intend on doing with this money they want to get from the tax payers…and how are they planning to pay it back.
They aren’t really working from the best business model. Sell sub-standard vehicles at over inflated prices while paying workers and executives outrageous salaries and benefit packages.
