I'm not anti-union, but I've always been critical of the auto unions because they ultimately seem to be the source of pain for much of the American auto makers. In a report on ABC today, they mentioned that they're paying more than $73 in pay and benefits per hour for line workers. Toyota pays about $30 less. The cost includes everything else, including pensions and this absurd layoff fund.
For some perspective, a computer programmer in the Cleveland market, who has to have a college degree and a couple of years of experience, can pretty easily get around $55 per hour as a contractor. Obviously you pay for your own benefits, but at most that's going to knock off three or four bucks per hour.
So does it make sense that someone gets paid wages and benefits 40% higher without the educational requirements or experience? The unions argue that these workers only get something in the $30 range in terms of take home money. OK, so then where does all of that money go? If these costs are associated with union demands, then it does seem to me that the unions are the issue. So why are they so hesitant to make concessions?
When unions prevented virtual slave labor and kept working conditions safe, that was a good thing. When unions began to alter the natural curve of workforce supply and demand, and the relationship between skill and education with the nature of the work, that's where things went wrong.
I don't want to see Detroit die, but I'm not convinced the companies or the unions are qualified to fix their problems, let alone take out a loan from the government.
I personally agree 100%. Unions in today's heavy governmental over-site environment are really not needed anymore.
When unions were first brought about yes they were a great idea, but they have accomplished what they set out to do. They have forced the government to step in and protect the rights of employees.
Everything that unions do now, has either been taken over by the government, or would be soon after unions are disbanded. If the government did not step in right away then the amount of law-suits that would develop due to poor labor practices would cause said company's to adjust their practices.
The rest of that money goes toward pension, benefits, health insurance (which is remarkably awesome) and (until now, apparently) the Jobs Bank. For someone making $25/hr in a white collar job, typically its assumed that the cost to employ them is $50.
That said, the UAW has already made this moot. The last contract lowers this to be very much in line with the foreign automakers. Anyone hired in going forward starts at something like $14/hr, and the benefits of this new contract won't really show up on "the books" until 2010.
That's not to say that their previous behavior was acceptable, of course. The UAW obviously got far too power hungry and short-sighted, which has put enormous strain on the entire domestic industry, and could ultimately play a significant part in it's demise.
I agree with your sentiment on the unions. However, I think this whole show by Congress and the Automakers (where they are driving hybrids to Washington) is complete bull crap. They will still be given the loan by the government, despite a CNN poll that states 61% of the people oppose the auto rescue. As of now the votes in Congress aren't there, but something will give, it's what happened with the original bailout in the first place.
Unions made this country what they are today,get a job.I have no problem finding a job IBEW LOCAL 56!!!
I can work when ever i want.History talks....
30$ and hour and i went to school for five years,and busted my ass for my family!!!!