Bailing Out Union Greed
When you consider why it’s necessary for Congress and the Treasury to use billions of our dollars to bail out three companies that have been run into the ditch, keep this in mind.
Here’s a stat from my friend, blogger Mark Perry: Total compensation per hour for the big-three carmakers is $73.20. That’s a 52 percent differential from Toyota’s (Detroit South) $48 compensation (wages + health and retirement benefits). In fact, the oversized UAW-driven pay package for Detroit is 132 percent higher than that of the entire manufacturing sector of the U.S., which comes in at $31.59.
The bigwigs at the United Auto Workers carry a good deal of the blame for this situation as well, though they will never in a million years own up to any part of it.
Other Posts of Interest:
- Barney Frank is a Cunning Fox, Isn’t He?
- Paulson’s Prevarications
- Munching Down on the Democrats’ Fecal Feast
Category: The Economy and Your Money
not sure where you got those numbers. the numbers i have heard make the domestics in line with Toyota ET all. the problem the domestics have are they have more retirees (wait a few decades and Toyota ET all will match that but only because they much smaller in the US). the real problem that the domestics have is they never put the money that was required by the contracts they signed (willingly too. no guns involved.). and this was caused to make short term profits at the risk of long term health. basically they decided that their workers were not going to live long. that was their bet. it failed when workers lived longer than they hoped (they didn't base this on realistic actuarial schedules) . the biggest problem they have today is this: a rebate on a vehicle of $7500. the labor on that same car: less than $3000. which do you think is the bigger problem? the other is that we the consumer changed what we wanted in weeks and months. it takes even the fastest of the car companies years to change. and then we decided to quit buying (not unreasonably either). todays economic crises is based on the fact wages have been collapsing. we now make less than what we did in 2000 based on inflation (that never stopped, when wages did). the economy of the last year was hoax based on only one thing, easy credit