Here is a story one of our news anchors here in Detroit did on the comparison of wages. You'll see the UAW is doing what they can to even the pay.
Guy Compares UAW, Non-UAW Pay Scales
POSTED: Friday, December 12, 2008
UPDATED: 7:14 pm EST December 12, 2008
DETROIT -- On Capitol Hill, when they start talking automotive wages politics pollutes the process. They don't compare apples with apples -- they throw rotten fruit. Instead, we’ll try to get to the meat -- is there a wage gap and how big is it really?
When automakers went to Capitol Hill last week they opened their books for congress.
Instant Feedback: UAW Vs. Non-UAW Pay Scales
Ford compared its cost for an hour of labor and the cost at non-union plants.
United Auto Workers pay now stands at $29 an hour against $26 an hour for the transplants -- a $3 gap.
The cost of vacation, overtime costs and the jobs bank adds $14 for the domestics and $9 for non-union.
Then comes the biggie legacy costs, the cost of retiree health care: $16 for the domestics, just $3 for the transplants.
They are close to parity on active health care FICA, insurance and worker's comp, 12 versus 11.
Total it all up, wages plus benefits. One hour of labor costs $71 for the Detroit Three. Versus $49 for the transplants, a $22 an hour difference.
That $70 figure is the one Republican’s like to quote so often in those testy hearings. Republicans insisted Thursday night that the field must be level before taxpayers invest with a loan, it fell apart over timing.
“What my colleagues...when will we actually get there,” said Tennessee Republican Senator Bob Corker.
Under the UAW contract, the gap begins to close next year.
When the new retiree health care plan, the VEBA kicks it, parity in legacy costs is achieved and the gap narrows and shrinks by 60 percent.
Once they begin hiring again, new hires come in at lower wages and benefits. When one-fifth of the workforce at Ford Motor Co. is in the new bracket the average wage falls another $5.
The new inclusive wage is $52 an hour for the Detroit three and $49, just a $3 an hour gap.
The UAW says it will consider ways to accelerate the changes and cut to parity but wants to know what parity really is before committing. “I had indicated to Senator Corker if we use Toyota as a benchmark,” said UAW President Ron Gettelfinger. “Then our research department was prepared to go to Toyota go in and review their wage structure.”
Gettelfinger insists Toyota actually pays its workers more when you include bonuses, about $8,000 a worker. He’s right, the average straight wage is about $30 an hour but analysts said it doesn't address the gap issue because if American companies were making a profit, their worker bonuses could be even more lucrative.
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Guy Compares UAW, Non-UAW Pay Scales
POSTED: Friday, December 12, 2008
UPDATED: 7:14 pm EST December 12, 2008