Average UAW Pay: $28, Not $70
During Government Bailout Talks, Wages of Auto Workers Are Exaggerated
Auto workers aren't making $70 an hour. Some were known to work 70 hours a week during peak production of the past, but no, $70 an hour is a myth that somehow is lodging as fact among much of the general public.
Leaders of the United Auto Workers are striving to combat this myth. The UAW reports, and news organizations have confirmed, that the average wage for a veteran auto worker is $28 per hour. Many cashiers and nurse aides and burger flippers still will perceive that this is too high, but at least the number is in perspective. Furthermore, the Big Three automakers have negotiated to bring general entry level wages down to as low as $12 per hour.
As for generous benefits, yes, UAW members have some of the best benefits of any union. They don't have to worry about visiting the doctor or paying for prescriptions. The cost of these benefits is the equivalent of roughly $10 per hour. Add the "bennies" to the base wage of $28 an hour, and you get a total of $38 per hour. When the Big Three auto executives state that the cost of health care adds up to $1,600 per vehicle sold (or unsold), they're telling the truth.
How did the $70 per hour myth grow roots? Conservative analysts have chosen to divide the automakers' total personnel expenses by the number of active workers. This means that $70 per hour statistic includes all pensions and benefits being paid to retirees - in other words, other people.
UAW leaders say that they are open to compromising, in order for their employers to survive. They also note that they have been compromising all along, going all the way back to the 1970s.
SOURCES
http://www.uaw.org
http://www.dailykos.com/story/2008/11/21/145754/25/353/664759
Published by Michael Thompson
Michael Thompson is a retired newspaper reporter who lives in Saginaw, Michigan. Main topics are political and social justice issues, with occasional escapism into sports and so forth. View profile
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17 Comments
Post a CommentLiar, that's total compensation the $70/hour!
Just curious about the paycuts to remain competitive? Do you think the executives took the same paycut? Very doubtful, they love to blame it on the blue collar workers while they continue to claim large salaries as well as large bonus's
Bill failed in Senate over the UAW's inability to realize these workers are overpaid for the type of work they do. Its sad that this inability will force all of them out of jobs instead of getting a fair wage. Unions hurt markets and will hurt the people they claim to protect.
Union workers, please take the inevitable temporary unemployment period to retrain and seek employment in other industries. You may have to leave Detroit. It will also be a prime time for innovation for new goods and services. Entrepreneurialship will abound. May God truly bless you in your efforts.
Very simply, if the big 3 made quality products people wanted at a competitive price, there would be no issue. All the warning shave been there for decades...as Toyota and Honda ate Detroit's lunch. The UAW wants capitalism for the upside, with out accepting the downside risk. Union concessions? I think not. Look at the airline industry--30% PAY CUTS to stay competitive. That's a concession. The absence of a raise isn't.
Actually we do worry about going to the doctor and buying perscriptions. My husband works for GM. We have a large deductible for both and only 5 office visits PER FAMILY PER YEAR are paid! Not exactly the same health care benifits of 20-30 yrs ago!
The article states VETERAN autoworkers make average $28/hr. New workers are only making $14/hr. My husband is a degreed Industrial Electrician and also has hundreds of hours of specilized training and makes $33 an hour. Not outragous for his education and training.
People have no idea what concessions the union workers have given the last 2 contracts. And raises and cost of living allowances were given up to help with retirees health care. The retirees also contribute to their health care cost now.
I'm so tired of the union autoworkers being made out as the bad guy. There are many other professions that pay a lot more than what the automakers earn with better benifits. You just don't read or hear about them.
Please read Mr. Thompson's bio. His motto is: Don't agonize. Organize. Let's take a guess who's side he is on concerning this issue. Data can be made to look however you want. I can't feel sorry for a group (UAW) that's not willing to make any concessions when their industry is in trouble. I live in a Right to Work State. I bet my state would gladly take these jobs for $15-$20 a hour with benefits.
Michigan = Union state with high takes. Not a very friendly business enviornment to operate in.
Let's put these numbers in perspective. According to the article, the AVERAGE wage for an unskilled worker is $38/hour when you include benefits. Assuming a standard 50-week work year, that's ** $76,000/yr **. Not bad for a high school diploma.
No doubt the higher-skilled workers make more than that. If we assume a 30% premium for skilled labor (such as metalworking, etc) then that salary goes up to ** $98,000/yr **. Not bad for still having a high school diploma; that's more than some college professors with PhD's make.
Now if you factor in time and a half for overtime hours worked, etc, all of a sudden the pay really starts to get high.
No wonder the general public feels that the big 3 can go to heck.
Obviously you have never operated a business. I do, and therefore I can speak with firsthand knowledge about the costs associated with employees. First, you cannot call the base wage paid to the employee on their paycheck their salary. For budgeting purposes, you must also add to that base rate the cost of the benefits which you provide to them or the staff as a whole. So an autoworker may make $28.00 per hour on their paycheck, the cost of benefits exceeds $50.00 per hour when taking into consideration the retirement costs as well as all other fringe benefits. Get your head out of the sand.
They should pack up and depart the People's Republic of Michigan and come see us in sunny, no income tax, right to work Florida. Of course our unemployment rate routinely runs two points below the national average, so they might have a problem finding enough workers.
Good job, now I understand.