that guy is an idiot. 70/hr is fucking rediculous for an auto plant worker. im sorry, but unions have outlived thier usefulness.
Why do people keep repeating this bullshit. Big 3 labor does not make $70 an hour. A single worker doesn't get $70 an hour in pay and benefits. It has NEVER been that way.
The EDITORIAL that first made that assertion ignored some VERY key facts.
1. They took the grand total of GMs Labor costs and simply divided it by the number of workers.
2. Included in those labor costs are Heath Care and Pensions for everyone that is already retired. Those Legacy Labor costs is what is kicking GM in the nutz.
3. The average hourly wage for an established worker is $28 an hour while NEW employees are hired on as contractors and start at $14 and hour.
4. Toyota pays their workers about $27 and hour. (I've gotta find the link on that one but I'm pretty damn sure I'm right about it). Keeping their people well paid is one of the ways Toyota has prevented unionization of their factories.
5. The UAW used to average about $32 and hour but let it drop after the 2005 contract negotiations.
The REAL problem isn't how much each worker is getting paid. The real problem is labor legacy costs. GM, Ford, and Chrysler have hundreds of thousands of employees that have long since retired. Toyota, Honda, Nissan, and every other transplant manufacturer has NONE of those legacy costs. They don't even offer pensions. They do 401k and other retirement packages.
Another thing. GM had PLENTY of cash back in the late 1990's to fully fund the pension plan. It was GM management that instead decided to change the accounting for pension plan funding and pocket the money themselves in the form of bonuses and stock dividends. IF GM management had not done that, they wouldn't have the pension problems they are having now. As for health care, well it got expensive..
I should note that GM's current management didn't create that problem. It was the former CEO.
Of course, UAW isn't blameless. They have made it as difficult as hell for GM to have flex manufacturing. They have spent decades beating the shit out of the company in strikes. They had a really costly strike back in 2005 (or maybe it was 2006). There are other issues too. However they HAVE made a ton of concessions. The UAW had already agreed cut GM's debt to them (for the new healthcare plan) IN HALF. The big deal this time is NOT about wages. It is about cutting that debt from HALF to 30 cents on the dollar.
GMs other huge issue is their non labor related debt. They are trying to negotiate with those bond holders to get them to take 30 cents on the dollar for a debt write down, just like they are trying with the UAW. Without that, GM is going into bankruptcy.
Keep one thing in mind. If GM does declare bankruptcy. That means they will completely strip those pensions and retiree health care benefits from their books. HUNDREDS OF THOUSANDS of retirees will do without. Do you think the Government is just going to let those people hang out there without any money? Fuck no. They are going to put every one of them under the Government umbrella. YOU and I will be paying for their retirement.
One other thing. Every time you listen to the news, you hear the Democrat or Republican side of this deal. Guess what. BOTH of them are fuckin' lying. Stop fuckin' listening to them. Anytime a politician opens his or her fuckin' mouth, they are lying. Republicans stretch the facts in one direction and Democrats in the other. None of them tell the fuckin' truth any more.