Detroit Automakers Seek Labor Cost Parity With Asian Rivals

Contract talks between the U.S.-based automakers and the United Auto Workers formally begin next month, but the key issue is already clear: Eliminating the roughly $25-an-hour labor cost gap between Detroit and its Japanese rivals.

Officials at General Motors, Ford and Chrysler said Wednesday that reducing labor costs to the level paid by Toyota Motor Corp. and Honda Motor Co. - Detroit's prime competitors - will be the top priority.

Industry analysts say that survival of the three U.S. companies is at stake. The three automakers based near Detroit generally pay about 30 percent more per hour in wage, pension and health care costs than Japanese automakers.


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Htay7500 - 6/15/2007 1:10:55 PM

+1 Boost

this is certainly not new to me.