Comments on: Why the Automakers are a Mess

By: Fact-Checking the Auto Industry

Fact-Checking the Auto Industry — Mon, 15 Dec 2008 18:11:47 +0000

[...] UAW responds that senior UAW workers at the Big Three make about $28 an hour before [...]

By: G

Wed, 26 Nov 2008 00:27:16 +0000

The UAW certainly does not bear the bulk of blame. Check your history. Henry Ford was an extreme racist who took advantage of his work force to further his ideals. As a result, the workers finally organized and created unions. The management of the Detroit 3 are the problem and deserve the bulk of blame.

The Japanese and Korean automakers simply have a superior system. From Conception to production, they simply do it better.

Good Luck Detroit.

By: Tim in HR

Tim in HR — Tue, 25 Nov 2008 21:31:59 +0000

Bottom line is the autocompanies along wqith the union created a “false economy” that can never be sustained as it is. When workers earn wages that are much higher than the value of the skills, knowledge and abilities on worth the open market, it’s a false economy and destined to crash.

By: Rick H.

Rick H. — Tue, 25 Nov 2008 20:35:38 +0000

I worked for GM for 26 years. Since the day I started working we were told that we had to cut the cost of our product or the factory would be closed or shut down. Every year we met that demand. I dare say that the money that we cut off those products were not passed on to the consumer, but were pocketed by the top people at the head of the company. Some of those making million dollar bonuses every year. The working man still was told that we had to cut the cost every year or else. We met every demand. I think that somebody needs to check out the top guys, shure they make big decisions, but they also make millions of dollars. The problem possibly could be that all those bonuses kept adding up and somebody just didn’t stay on top of their job. Just and opinion

By: Stan Spector

Stan Spector — Tue, 25 Nov 2008 15:56:58 +0000

I have talked with a Detroit worker and he says that he does not see anywhere near $70 plus per hour in his salary and benefits. What are they putting into this figure?

By: Patrick Kelley

Patrick Kelley — Tue, 25 Nov 2008 05:39:33 +0000

Yes both GM and Chrysler create military goods even today. GM is the owner of AM General, this company produces the HMVWEE (M998, M1026, M1114, M1151), and are in the market to produce the Hummer’s replacement. They also help produce the MRAP.

Chrysler developed and produces the M1 Abrams series of Main Battle Tanks. Ford doesnt do crap.

By: Liquid_Len

Liquid_Len — Tue, 25 Nov 2008 03:27:09 +0000

NO hourly autoworker makes six figures a year. Any of you who believe that are the most gullible people on Earth. In fact, the whole “$75″ is an accounting myth. Unless it’s a skilled trades employee, working both daily AND weekend overtime, 48 weeks out of the year, it’s impossible to W2 out at the end of the year at six figures. Many of those people have continually brought up the un-cited “fact” that UAW workers get $70/hour in wages and benefits as opposed to about $40 or so for non-unionized workers at the foreign owned transplants. While the UAW and the Detroit automakers have made more than their share of mistakes and deserve a good chunk of the blame for what is happening, there is a major problem with this particular argument. IT’S NOT TRUE!

UAW members do not take home $70/hour. That is the automaker’s cost per active employee. What’s the difference? The latter figure is total spent by automakers on wages and benefits divided by the number of active employees. The cost of benefits includes the pensions and health care costs for the hundreds of thousands of living retirees in addition to active workers. Those punching the clock every day, don’t get a dime of that. As of last year, UAW workers made an average of $28/hour in wages + $10/hour in benefits. The rest went to retirees, a cost that is borne by the automakers. The reality is that unionized and non-unionized autoworkers actually make very similar wages and benefits. In fact, last year, Toyota workers in Georgetown, KY made MORE money than their UAW counterparts. See: http://www.autoblog.com/2007/01/31/toyota-workers-in-us-made-more-than-uaw-members-for-first-time-l

The UAW has had such a hard time organizing the US factories of Honda, Toyota, Nissan and others, because they already make as much as their unionized counterparts. The fact is that in industries like this, companies will often tend to match the compensation offered to union workers just to keep the union out.

By: Dave Hrejsa

Dave Hrejsa — Mon, 24 Nov 2008 22:50:14 +0000

I believe that fundamentally auto production is good for the U.S. economy, but the Big 3 need to be competetive on all fronts – product, dealer network, wages, production costs etc. The product has certainly gotten better in the last decade but the cost structure is still out of the realm of the foreign manufacturers who build in the U.S.

As an eleven year resident of Detroit, and having no ties to the auto industry I am certainly an outsider with an opinion. One has to wonder and ask “why are there no auto manufacturers producing cars in the state of Michigan other than the Big 3?” Could it be the UAW? Could it be that the UAW’s model is completely outdated? In what other industry is it not possible to terminate an unproductive or sub-par employee. The UAW protects its employees rather than eliminate poor performers, the UAW promotes the jobs banks, the UAW promotes “jobs for life” regardless of individual performance or capicity to perform.

Congress has been negligent in its discussions with the auto manufacturers by not directly addressing the UAW and its penchant for socialism disguised as brotherhood. In order for the Big 3 to be truly competetive in todays’ environment, all of their employees need to be held to the same standard, be it white collar or blue collar. All employees need to perform, all employees need to be able to be terminated or replaced without penalty or repercussion – this is the world we live in now.

There is a Reason that Hyundai, Kia, Honda, Nissan, BMW, Mercedes, Toyota and soon VW all build cars in the U.S., and their is a very real reason none of them build cars in Michigan.

By: Bill

Bill — Mon, 24 Nov 2008 19:10:50 +0000

Scott B is right…but not completely. Having worked at both I can assure you that this chart is half the reason and Scott has the other half. The ‘other’ half being poor managment. BOTH sides are equally at blame as both refused to change and update with the times. As such I can’t feel sorry for their plight. I left GM for this exact reason… I saw no change to any attitudes or managment structures the entire 10 years I was there. GM, Ford, Chrysler managment are as much to blame as the UAW. Weak Leadership + UAW = Failure. It’s a simple formula and one I hope we are not willing to correct without forcing these companies to restructure so they can be sucessful. Without total managment change and UAW contract change, believe me, when I tell you NOTHING will get better without it. I know we have all heard the horrible UAW stories with workers getting paid to do nothing, but let me ask you this… how can a board allow their CEO (Rick W.) to continue to run the company after continued and significant (billions) losses since ‘98? I defy anyone to give me any single fiscal year where he has had any success. Again… both sides are to blame.

By: Gabriel

Gabriel — Mon, 24 Nov 2008 18:07:09 +0000

RETIREMENT AND BENEFITS are what’s killing the Big 3. Especially G.M. Please read:
(While America aged : how pension debts ruined General Motors, stopped the NYC subways, bankrupted San Diego, and loom as the next financial crisis
Lowenstein, Roger.) – Then you’ll understand how the UNIONS (UAW) have really put the screws to these companies and why they are to blame.