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| quote: | Originally posted by XaNaX
the $10 figure isn't accounting for the increaded legacy costs that the big 3 have because of the fat pensions and above industry average benefits the workers have thanks to the UAW. Show me some data that indicates that the big 3's workforce is more experienced/aged than that of the japanese companies operating here in the US. If you bothered to look at the graph on the link you posted you would have noticed that there is very little difference between the non-UAW and the UAW workers when it comes to actual salary. The difference is in cost of benefits and legacy costs, that is where the $22 an hour comes from, thanks to the UAW. No matter what the actual wage is, the big 3 have labor costs that are $22 an hour more than the foreign manufacturers operating in the US have and that is a handicap that they will not be able to overcome. |
This was the point of my comment before. When pensions/retirement benefits were guaranteed to your grandparents, they were expected to be dead by now. The fact that medicine has advanced faster than the statistical models adjusted for screwed the unionized companies.
BTW, during the UAW's president's press conference on CNBC this morning, he pointed out that in 2007, Toyota was bragging about paying more then the Big 3 in salaries.
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