Should We Really Bail Out the Big Three Automakers with $73.20 Per Hour Labor?

[ZingPao]

The chart above shows average hourly compensation for the Big Three ($73.20) and Toyota (TM) ($48.00), compared to average hourly compensation for Management and Professional Workers ($47.57), Manufacturing/Goods Producing ($31.59) and all workers ($28.48), data available here.

Should U.S. taxpayers really be providing billions of dollars to bailout companies (GM (GM), Ford (F) and Chrysler) that compensate their workers 52.5% more than the market (assuming Toyota wages and benefits are market), 54% more than management and professional workers, 132% more than the average manufacturing wage, and 157% more than the average compensation of all American workers?

Maybe the country would be better off in the long run if we let the Big Three fail, and in the process break the UAW labor monopoly, and then let Toyota, Honda (HMC) and Volkswagen (VLKAY.PK) take over the U.S. auto industry, and restore realistic, competitive, market wages to the industry. It might be the best long-run solution.

Zing's note: I work at a manufacturing company. Your labor cost per hour is a very important metric in pricing your product to be competitve. The company I work for does very well in the market place with a labor rate of $48.33 per hour. I don't know how they calculate the numbers above, but typcially labor cost is not only the wages and benefits, but also say if a worker is using gloves and a hammer that cost is included as well.

Poll is up above. Vote on the bailout of automakers.

http://seekingalpha.com/article/1050...cle_sb_popular

[Knight of the Word]

Thats why their broke, the unions got too greedy and they have a lot of workers not doing real work.

In order to stay competitive, you need a streamlined workforce making a little better then average wages to keep good workers.

[ZingPao]

And what ever happened to filing Chapter 11???

If you start cutting wages to compete with china - good luck.

I would just stop the flow of slave labour good on the grounds of human rights.

Can you see were this would end?

Everybody would be slaving for next to no reward.

Breaking the unions would be great for management and shareholders, that's just what they want. Then eventually we can have a huge population of temp workers with no security and minimum benefits migrating from company to company as work is needed. A 'fluid', 'competitive' work force. Competing with China that is. The shareholders and top management would get an increased return, while everyone else suffers lower living standards. You have to ask yourself who ultimately benefits.

[Knight of the Word]

I am not talking about breaking the unions as they have their purpose, and do serve the average workers well.

What they need to do look at is this, or we letting the companies we work for be competitive.

Some of the union demands and contracts have really gotten out of touch.

There contracts should be based more on profit sharing and quality of work.

I personally will not buy a car or truck from the big three any more as they are high priced pieces of shit.

Should we really bailout an industry that has had its head up its ass for a long time, maybe with them three gone we could get some well built fuel efficient vehicles

The unions and the companies have only themselves to blame, why should we protect them from imports, as it only enables them from producing good quality products.

I am union and believe in unions, but uaw has pushed a little too far. Having driven truck all of life, without unions you will work for free at times, get no pension, lousy benefits if at all, most of my employers were at least millionaires, they have no respect for safety, the burden is aways on the employee. All of need to work together as a union, as a union of family, as the union of the united states of America. Anyone who does different is greedy and out for themselves.

[ZingPao]

The 2 post above I think are really good. There are some smart people on this forum.

Like KOTW, I do not buy American cars. Honda, Acura, Nissan. Currently, we each have a Nissan. Better price, better quality. Labor cost dictates selling price/competiveness.

[ZingPao]

[Knight of the Word]

I see they are still debating on how big a govt. welfare check to give them.

Lets bail every sector out,

This is good look at how the capitalist system fails.

one is you get a monopoly

two is they get too big to let fail, because of the economic fallout.

three when you protect them from their bad behavior and policies, you get an inferior high cost product that know one wants.