I have been very interested in the “bailout” for the Big Three auto companies that is being proposed. I saw an article wherein the UAW is actually asking for $25B to cover the union’s healthcare costs. I then read the following:
“The 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) shows that the Big Three are not competitive. No wonder the UAW fights so hard.
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”
I agree – let them die and get efficient. Subsidizing inefficiency is not good for anyone (except the UAW). I should note that my father was in the USW union and hated it.