Reply #60: Not true. EXCLUDING legacy costs UAW wage costs = $55/hr. Transplants = $46 [View All]

[Statistical]

Now $9/hr doesn't sound like a lot but a company like GM has 200,000 employees it adds up.

http://www.theautochannel.com/news/2008/12/13/299179.html

Wages:
UAW $29
Trans $26
Wage Related:
UAW $14
Trans $9
Benefits:
UAW $12
Trans $11

Legacy Cost:
UAW $16
Trans $3
Now I don't think GM should be penalized for Legacy costs. Starting in 2010 they won't when the UAW takes over the pension & healthcare of union employees (VEBA).
So lets look at TOTAL LABOR excluding Legacy Costs

Average Wages (including 10% overtime)
UAW: $66,700
Trans: $59,800

Total Labor cost
UAW: $55/hr ($110K per employee)
Trans: $46/hr ($92K per employee)

Total labor is 23% higher. UAW workers are now 23% MORE productive than workers for Honda or Toyota.

$9/hr * 266,000 employees * 2000 hours per year = $9.5 BILLION. GM was $4.5 BILLION in the hole this year.

A $9.5 BILLION change in labor costs would move GM from losing Billions to being $4.5 BILLION on the plus side.
That is just making the wages competitive with other automotive workers = a "poor man's salary" of ONLY $59,800 on average.

If in addition to smarter labor costs GM were to cut 15%-20% of the workforce (slowly say over 5 years), close and combined plants and sell/eliminate under performing brands they could easily be profitable and competitive again.

Plus they actually would be able to pay the taxpayers back.