Re: [MLUG - DISCUSSION] UAW Salaries

[Mike Miller <EMAIL:PROTECTED>]

On Fri, 12 Dec 2008, Dave Lloyd wrote:

> On Fri, Dec 12, 2008 at 14:44, Mike Miller <EMAIL:PROTECTED> wrote:
>> On Fri, 12 Dec 2008, Jerry Gamblin wrote:
>>
>>> http://mjperry.blogspot.com/2007/07/uaw-pricing-themselves-out-of-market.html
>>>
>>> "The average UAW worker with a high school degree earns 57.6% more
>>> compensation than the average university professor with a Ph.D. (see
>>> graph above, click to enlarge), and 52.6% more than the average worker
>>> at Toyota, Honda or Nissan."
>>>
>>> If these numbers are true no wonder the automakers are in so much
>>> trouble.
>>
>>
>> I think the numbers have to be wrong.  How could it be that the average
>> auto worker makes more than $140,000 per year in total compensation?
>> That is a very high salary.
>
> Benefits.  Considering the (still) nice pension most auto workers 
> receive, health benefits, discounts on new vehicles, etc. I could see 
> how the cost of fringe benefits that never make to your W2 could exceed 
> the total salary.


Did you read the rest of what I wrote and the Forbes article?  It was 
pretty clear that a big chunk of the cost per hour of labor -- $17, to be 
exact -- is because of health care costs of *retirees*.  That is, 
non-workers.  So should we be adding retiree health costs into the cost of 
current labor?  I wouldn't think so.  That cost should have been dealt 
with by investing years ago into some kind of retirement/health account 
for those workers.

As some of you will know, the big three auto companies have been wanting 
universal health care because it will save them from paying these rising 
health-care costs for their workers and retirees.  Maybe they didn't 
anticipate such a large increase in health-care costs -- if so, why didn't 
they anticipate it?  The problem is with management, not with the worker 
or the union.

Mike

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