Must Read: The Real Story on UAW Pay Levels

Keith K. The UAW workers have let the UAW put them out of jobs because they get paid just as much to stay home!!!!!!!!!!! The job banks and other plans set the workers up to have not so much job security as wage security. These workers sit home collecting the same pay as before they were laid off. Try getting that gig. And oll of this with barely a high school diploma. Nice work if you can get it, but this counrty cannot afford it anymore. The BIG 3 have been bailed out before. Don't give them the chance to screw it up again.

Having lived in the Detroit area for the last 15 years, I have seen the toll that the UAW and its greed have taken in this new economy. UAW workers laid off, sit home collecting paychecks long after unemployemnt runs out. Retired workers aged 50, collect benefits that are nearly equal to their full pay. They pay nothing for health care, and abuse the system seeking specialists, and using ER visits for routine care. They may have similar take home pay to other workers, but they benefit with lower "overhead" than their counterparts. Another side to this story that no one wants to talk about is that it is union workers that have greatly impacted the housing market in the Detroit area. Union workers seeing their overtime dry up are defaulting on loans that should never have been made. These workers live beyond thier means, and then stick it to us when the well goes dry. The retirees live like kings, the laid off workers sit home collecting money to do nothing, and the ones who work, rely so heavily on overtime to live in fancy homes, and drive gas guzzling SUV's that never see any "sport" but bowling. They say "I need space". FIne, drive a minivan that gets 30 MPG. The big 3 can survive bankruptcy the hard way like Kmart did, and the UAW can learn to live like the rest of us.

Could someone answer the question.....What is the real cost of a vehicle (out the back door of the factory)? What is the profit write-up to my dealer versus that cost? Wouldn't it be fair to say that AFTER breaking the ridiculous UAW contracts, that "the big 3" could lower the profit margin, pass that lower price to the consumer, and make it possible to buy a new vehicle for less that the cost of my home! That still gives people jobs, and the "domino companies" would still be giving jobs & service, AND maybe just maybe the "fat cats" would then see that multi-million dollar salaries, multi-million bonuses, and golden parachutes ARE NOT necessary to be successful. In my business, if there is an item I'm having trouble moving, I lower the price, which in turn lowers my profit, BUT I get it sold, and through volume I end up making about the same amount, while my manufacture partners are trying to stay up with demand with providing More Jobs to others.

I think now is the most important time in recent history to think about loyalty to OUR country and the products that we create. Granted some will still buy "foreign" cars for whatever reason and that is a shame. This would be the perfect oppertunity for the Big Three to give the UAW the boot. There are a lot of non union people in need of a job right now and I'm sure a lot of union people would jump ship if it ment keeping their job.

Brian- I appreciate your thoughtful articles. Hope to see you after the first of the year. Have a blessed Christmas.

I am so thankful for the Senate! They had enough sense to look the UAW and the Big 3 in the eye and say NO! America is not going to help companies that will not help themselves. As a business person, we must operate with a budget and stick to it. Why can't these guys in Washington figure that out? I would take a big pay cut if I could keep my job. All i have heard is that "no one is going to take a pay cut". Oh yeah, the millionaire CEO's are going to work for $1. The leaders of Delphi (Supplier for GM) did the same thing and where are they at.....Still in bankruptcy. The same place these companies are going. Then we will see how the UAW does in those negotiations!

If the UAW was really interested in keeping their workers employed, then wouldn't it make sense to reduce some of the burden on the Big 3, like lower pay. These guys have no problem going on strike for higher wages better working conditions, etc. These are tough times, and we need to pull together to keep all of our workers employed. UAW should make a concession until the economy gets better, or let the Big 3 go belly up, and re-tool!

GM has 60b plus dollars of debt. There are limited ways to reduce that so that they can have some chance of survival. Sen. Corker of Tenn. has it just right. Unfortunately the UAW wants to ignore the real world. Wage and benefit cuts are a part of the overall solution. WAKE UP AND SMELL THE COFFEE - UAW...... GM should just go ahead and file Chapter 11 and be done with all of this tap dancing. It's juts costing them additonal funds that can not afford to spend on this political theater......

GM, Ford, and Chrysler can survive, as they do have some good products. They just need to eliminate the ones that have proven to be slow sellers. But wait...the UAW won't let them. The workers have allowed themselves, through the UAW, to put themselves out of a job. How smart is that? Anyone who has followed the technology and market over the past years has been able to see this coming. You cannot build cars by committee and survive. If they had designed a diesel hybrid, or brought diesel technology to the US a few years ago, they could have pretty much taken over the automobile market in the US. Now what do we see, the French as the first country about ready to bring one to market. GM has a world beater in the CTS-V, Corvette, and now Camaro, and Ford great cars in Europe. Chrysler benefited greatly from its (former) relationship with Daimler. Let's see them start working for the US market, or is it too late? We are about to find out...And, if you are an auto worker in the US, don't be too disheartened if they fold, you can always get a job with a foreign manufacturer building cars in the US. After all, they won't have competition from our three so they will build more, and therefore hire more. Unless, they allow the UAW in, and then look out AGAIN!

Guys !!! Guys !!! Wake up!!! All of you are bashing out the Big 3, without looking into the real felons!!!! What has Congress done for years ??? How did both parties - but especially the Dems - got in bed with the UAW and other special interest groups and created all this mess??? Are you blind???? Deluded??? Or just plainly STUPID??? As for myself, an immigrant and a former big fan of european cars - I loved Audi's - now I'm driving my second Lincoln!!! And let me tell you something, I wouldn't buy anymore an Audi not even if someone would pay me to do it, and if I wouldn't do that the hell I wouldn't spend my money on a Lexus!!!!! If you think Ford at least is the same old quality problems ridden car, DO YOUR HOMEWORK!!! BTW, I have no connection whatsoever with auto-industry, and I really didn't like Ford's!!!! But if these guys really want to do something and really deserve to be bashed for, they need to: 1. Put UAW in it's place 2. Migrate out of Detroit towards states that are really business friendly - is there any question why MI, and CA are in the gutter??? Dems in control, big taxes, big governments, and BIG UNIONS !!!! 2. Stop the nonsense policy of outsourcing and off-shoring which ultimately makes cars more expensive and prolounges the time a new car can be put out on the market 3. Invest heavily in R&D 4. Break the monopoly and clout the energy companies have and put NEW TECHNOLOGIES out on the market that do not rely on fossils (whoever thinks energy companies are not having in this their own share of misdeeds in this, is not living on this planet... How do you think Shell would react if say an electric distribution company would open-up a chain of Electric Charging Stations ????) And by the way in all this bashing nonsense how come no one speaks about Ford Escape HYBRID which is the best SUV in it's class in terms of mileage???? Hello???? It's FORD, not HONDA, TOYOTA or any other tin-can crap!!!!

So here it is - the automakers of America have finally been given their due. I bought their crap from the late 70's, the 80's, the 90's, and even into the new millenium, due to a misplaced feeling of patriotism. And that's what it was - crap. They didn't care about quality, or the fact that their pieces of crap would break down and leave me stranded almost a dozen times during that period. I say let capitalism work, and let them fail - it's the only way they can break the UAW stranglehold anyway. $76 an hour?!! What kind of crap is that?!! Let them fail and bring the UAW to its knees - if their workers can't survive on $33 an hour like the Japanese then screw them!! Most of us can barely make 1/3rd of that!! Screw them like they've screwed us for the last 40 years!!!

The above should read UAW Viagra GM sorry for the mistake.

Lets don't forget the Viagra cost,I invite all of you reading this to do a search on Google and punch in UAW Viager GM you won't believe what you read! what this cost the auto makers a year, 17 million for GM alone!! and there retired workers get it to!.must read stuff. also do a search for job banks and the cost of that to the auto makers,all these cost are past on the the car buyer.I am done buying UAW built cars,I will not support a Company that I have to bail out for making dump mistakes.

A lot of good points made above. As for: "if the Taxpayers are footing the bill for these loans, why doesn’t GM just give us each a car?" That just may happen when Obama is president, particularly if the big 3 keep building cars while no one is buying them, which will drive down prices into the range of a stimulus check. (kidding...mostly....) I think it was on this site a few weeks ago that added up the bailouts, and claimed it was $24K/US citizian. If we had just given that money away to the tax payer (say 75K per household or something), what would our economy look like now? All those who stopped paying their mortgages could now pay them for at least a year or two, those that don't need the money for that could buy a GM/Ford, invest in the faltering stock market or pay off credit cards. Its a total freaking crime that we all pay ~1/2 our income in taxes of some form, only to see it so easily thrown at any big company that asks for it (yes 2 weeks of BSing congress is easy). All and all though, I for one am not that upset with the turn of events (I'm sheltered in academia). When this all back fires, maybe our country will finally realize the benifits of true fiscal conservatism.

The Big Three does not have to re-tool or re-engineer, they have been making an excellent product for decades... believe me this propaganda about the Japanese being so much better is nothing but a conspiracy, and a conspiracy that is working all too well.I have commented on my indestructible Plymouth Reliant/Chev Celebrity/ Mercury Sable and the list could go on...."all" these vehicles needed was regular oil/lube.To make sure your Japanese car will last, you have to follow their "maintenance program", in 10 years you,ve probably paid for the car twice over.Wake up America and support your own industry before it is too late!

I appreciate everyone's concern about bailing out the automakers. As for me I will probably never be able to purchase a new Detroit built vehicle. However I am perfectly content to buy a ten year old toyota and drive it another 100k miles with very little maintenance cost. My total investment in purchase and repairs of a toyota is usually less than the depreciation of the Detroit built car when I would drive it from the dealer parking lot. Why buy a vehicle that breaks when you least expect it, goes down in value so fast your head spins and costs an arm and a leg just to maintain. I am content driving my 200k mile toyotas and not having to worry about all those things. When Detroit can build a reliable vehicle again I might be in the market to buy a used one after it has depreciated 50% in the first two years. Personally, without a major change in the way they build cars in Detroit, American's just aren't going to buy their junk anymore. From my experience that's the truth!

Senator corker must not remember Pearl Harbor,what the japs did to us in 1941 there doi9ng it again MERRY X-mas Bob

Senator Corker must not remember

You that there is not a significant per employee cost in wages stating they are similar. They are not. Also, American auto makers have made huge gains in quality and styling. Go to an auto show, I did. American auto companies need to reduce union dominance (severely). They should relocate plants to areas where employees want a chance and not a corporation to bash. Then they have to get Americans to walk into their showrooms. Something American buyers don't do often enough.

What everybody is forgetting is the the government has already set precedence in bailing out company from their own greedy mistakes. They did it in the financial markets that bought up bad home loans packaged as an investment tools. Leave the UAW workers alone. If the Detroit 3 couldn't afford the contracts they shouldn't have signed the labor agreements. Congress needs to get off their buts and give the money to domestic automakers. They can either bail out the the companies or pay the workers to sit at home and collect unemployment.

I have said it before I'll say it again the UAW is the one who destoryed the companies way overpaid and then put out shoddy workmanship. your lack of care in the past is Americas lack of care for your plight now. If they take this bailout it will mean certain death because of the bailout backlash.

It seems to be the direction we are headed with the Big three is that the government will have to provide a subsidy equal to the labor cost difference and loss per car.

Lee Iacocca decided that he would put his face and character on the line for Chrysler and succeeded in rebuilding Chrysler. Inspiration is job 1.

Again ---the UAW has all the money to bailout the little 3 and get them in the black! There should be no taxpayer involvment !The UAW is playiny a game of chicken with stupid politicians and they are winning . The UAW will not eliminate any costs ---why --cause they have Congress in their back pocket !!!This is totelly rigged !

I have a question...if the Taxpayers are footing the bill for these loans, why doesn't GM just give us each a car? If they really wish to drive home the point that their cars are just as good (or better) than foreign carmakers, than how about we each get a voucher for a new GM vehicle? This way our taxpayer money is actually buying something, rather than just being given away to be burned up; cause based on their current business model, they are only going to be right back where they started come March 2009. If they were to give each taxpaying citizen a voucher for a new GM vehicle it would: A.) Keep the autoworkers, suppliers and dealerships employed. B.) Allow for a huge reduction in the inventory that is remaining stagnant across the country. C.) Get the cars off of the acres and acres of "storage" at the various ports of the country, and into the hands of those who would love to have a new car, even if it is a GM product.