Quote:
Originally Posted by 6sigma
GM pays an average of $63/hr currently for all the UAW workers. This includes healthcare and benefits. This is what it costs GM per hour across all ~50k UAW workers on average. GM has a higher hourly labor cost than FCA, Ford, or non-union manufacturers.
Why did the UAW strike GM to demand more money, when they are already the highest paid? Because if they can squeeze GM for more then they will be able to go to Ford and FCA and say you need to raise your package to the same level. In the end, it makes all American UAW manufacturing much more expensive and less competitive than the non-union competition. This is why GM is fighting hard to be able to have some production in Mexico - they need to be able to use that lower cost production to help balance out the high cost US production.
Here is a good article with some data and facts for those interested. This graphic on pay is from that article.
 |
And the union is striking for more money AND a guarantee all product sold in the United States is built in the United Sates.
That’s why I say the union should give GM healthcare in the negotiations. If they can cut costs somewhere they’d have a better chance at getting product -probably not all but at least some - back in the USA.