The bailout of the Big Three was shot down in the Senate. The UAW refused to lower their wages (which are currently about $69 an hour including benefits) until 2011. That was not good enough for the Republicans and a few Democrats in the Senate. They wanted to bring the wages down in line with that of the Japanese automakers in 2009. Their American workers are getting paid around $48 an hour including benefits.
It seems to me $100,000 a year, which is what $48 an hour works out to, to work in a factory would be pretty good. It certainly seems reasonable to me. I have worked on both ends of the spectrum. I spent a few years doing very hard manual labor as a roofer. Then I went through college and now I work very hard as a software designer. Neither the roofing, (I’m told from people who have done both that factory work can’t compare), nor the highly specialized work requiring a college degree that I do now paid me anywhere near that figure. Somehow though, the UAW would rather be out jobs than make a measly 6 figures. As I have said before, these companies deserve to fail.
I really don’t understand how these companies managed to agree to the deals that they did. The other companies, in the same industry, are paying their workers $43680 less each year. Every employee! This is the same job. Anybody have any ideas as to why the cars they sell are so expensive? Anybody? Anybody?
I certainly can’t pin all of the failures of the Big 3 on the UAW. Clearly there are other issues that I have outlined in other posts, but the UAW is a big part of the reason this industry is failing. Today, they were the reason the auto bailout failed in the Senate. On the bright side, Capitalism Wins! For now. I leave you some bailout humor, and a question - any bets on how long until the bill is revived full of pork?