$73 A Hour: Adding Up Union Wages, Have We All Been Misled?

That figure — repeated on television and in newspapers as the average pay of a Big Three autoworker — has become a big symbol in the fight over what should happen to Detroit. To critics, it is a neat encapsulation of everything that's wrong with bloated car companies and their entitled workers.

To the Big Three's defenders, meanwhile, the number has become proof positive that autoworkers are being unfairly blamed for Detroit's decline. "We've heard this garbage about 73 bucks an hour," Senator Bob Casey, a Pennsylvania Democrat, said last week. "It's a total lie. I think some people have perpetrated that deliberately, in a calculated way, to mislead the American people about what we're doing here."

So what is the reality behind the number? Detroit's defenders are right that the number is basically wrong. Big Three workers aren't making anything close to $73 an hour (which would translate to about $150,000 a year).

Agent009 - 12/10/2008 12:40:40 PM

+5 Boost

UAW1 here is your best shot.

009

Spectator - 12/10/2008 3:11:38 PM

+6 Boost

LOL!!!

Why do you encourage him 009. He will just tell us that we are all being duped, and that it really is hard work dropping out of school to make a 6 figure salary.

If he actually pays attention...here is a tiny tid bit of info UAW...

current salary of a US Private is $16,164 without hazard pay, SDAP, BAH, COLA etc; which could net you a whopping $25,000 grand a year....oh and all the free bullets you can catch.

Now tell me is your small pay cut really somthing to complain about UAW.

kablaam - 12/11/2008 9:24:45 AM

+2 Boost

Spectator:

While your numbers are understated, if it were true it would just solidify the fact that we need to compensate our troops more.

An E3 w/ 5 years of service based in Detroit is making 42k.

No way near UAW workers pay and still underpaid, but still double your understated numbers.

Remember, the UAW salary figures include fringe benefits(pension,health,dental etc.) normally not included when stating someone's hourly rate.

I love how everyone is so fixated on these workers pay scales....... there is more deserved fat to cut in the glass towers, I promise you that.

njsidekick3 - 12/10/2008 12:55:47 PM

+2 Boost

for $72 bucks an hour, u can get a "date" on CraigsList... 3 hour Min.
*does Robot dance*

Lamborghini_vs_Ferrari_Racer - 12/10/2008 1:00:32 PM

+4 Boost

And I have been searching CraigsList for the past 3 hours with no luck ???

njsidekick3 - 12/10/2008 1:01:34 PM

+2 Boost

LMAO @ Lambo.
(Swan dives out of office window)
*dies*

zorbeeze - 12/10/2008 1:21:14 PM

+3 Boost

I've spoken to several people involved in the auto industry, employees, managers, analyst, as i used to work in the auto industry and now in a borkerage firm, i can tell you that 73$/hour wage is bs.
Though i can tell you the older employees, who have been working there for more than 2 decades do make more than they should.
What's killing GMis that it no longer is a car manufacturer. It is an HMO that just so happens to produce cars. But then again that's how americans want it.

holmstar - 12/10/2008 1:58:14 PM

+10 Boost

$40/hr is still a LOT of money for a job that only requires a high school education. That is $80,000/yr! Most college educated people don't make that.

Need4Speed - 12/10/2008 4:36:50 PM

+4 Boost

Makes me wonder what the non-bargaining white collar workers make...like Engineers...upper Mgmt..etc.

woood - 12/11/2008 9:07:31 AM

+1 Boost

EXACTLY! If this is the case, all kids would want to be an auto worker when they grow up and join the union to protect their salary while only finishing high school or less. Is this the USA of the future? Something tho think about.

Spectator - 12/11/2008 12:35:06 PM

+1 Boost

holmstar...your right $40 is a hell of a lot an hour.

But don't forget to add in those fringe benifits like insurance and pensions which they say total 15$ totaling $55 an hour.

That comes out to be a whopping $114,400.00

Thats just insane. Especially when Cost of Living up in Michigan or Ohio, is nothing compared to the rest of the nation.

Agent009 - 12/10/2008 2:23:45 PM

+4 Boost

I would think a typically job requiring that skill level might be on the order of $10/hr. max.

If the UAW represented the migrant workers picking crops in the fields, they would make $50 an hour total compensation.

AMiodynski - 12/10/2008 3:39:25 PM

+1 Boost

Short answer is NO, they don't deserve to make anywhere near that kind of money !!! $10-16 that's it, plus benefits!!

kablaam - 12/11/2008 9:33:53 AM

+2 Boost

@ 3o'clock assuming a normal 9-5 schedule and you are on an auto website criticizing someone elses worth.

Do you think you deserve what you make at work while surfing the net?

The Unions did their job and bargained the best deal for their members. You would do no different bargaining for your best compensation package.

Sour grapes.

kablaam - 12/11/2008 9:38:07 AM

+2 Boost

http://www.youtube.com/watch?v=g5SRyG6UR2A

Do you really want them making cars? While I agree the result of the crash has much to do with the design as well, but COME ON!!!!!!

The Chinese have enough problems making lead infested toys, poison in baby formula, bad toothpaste etc. They have a long way to go, but when they reach it, they will be a force to reckon with. The Chinese work ethic, drive for education and hunger is something America hasn't seen in 40+ years, sad.

thisismyname - 12/10/2008 3:57:50 PM

+7 Boost

A friends of mines Mother has been bolting on headlights for GM for over twenty years...

She regularly makes over $120,000 per year, with overtime.

Yes it might be an annoying and aggravating job.. but it requires no intelligence, no social skills and little to no training..

Does she deserve it? HELL NO!!

So why would we EVER support car companies that allow themselves to get bullied into a situation that allows their headlight installers to take home a consistent six figure income?

Jaybrn - 12/10/2008 7:18:30 PM

+3 Boost

She makes more money that most pediatricians who have to figure out how to pay $200k to $300k in college and medical school loans- Crazy!

kablaam - 12/11/2008 9:41:49 AM

+2 Boost

Yeah,,,,,,,, and I bet the OT requires her to put in 35+ hours per week extra.

To justify the workers pay, she is away from her family putting in the time. Overtime should not be included in someone's compensation, it doesn't make sense as it is time served.

To justify the company's stance on OT, you are paying a worker a 1/2 premium, but saving on hiring an additional worker and having to pay the salary, benefits and all the govt taxes associated with a new body. In short the company saves money.

DinamoR - 12/10/2008 11:38:44 PM

+2 Boost

We need Unions. Otherwise you get the Dubai construction industry where you have people working 12 hours a day for 7 dollars a day in 120 degree heat with no benefits or job security building the most expensive buildings in the world.

But we can't let union take over either. there has to be some middle ground. and these guys don't make 70 bucks/hr. more like 25-30.

mercuryguy - 12/11/2008 1:14:53 AM

+2 Boost

People are just attacking Blue Collar Workers. How about the White Collar Bankers that drove the economy in the Tank? Are they worth what they are paid? Apparently so, tha tax payers have to cover Poor Performing Employees payrolls to keep them in a Job.

How about Government Unions that get Healthcare and Free Face Lifts and Breast Augmentations as part of thier Union Contracts while working people toil everday in hard jobs without Healthcare?

chewy - 12/11/2008 1:29:45 AM

+3 Boost

Actually a good article breaking down the figures. Domestics pay 15 dollars more than other US factories because of retirees, doesn't look like the government wants to fix that part.

mercuryguy - 12/11/2008 11:12:47 AM

+2 Boost

I fail to see how the costs effect the price of the car.

Most American cars have a lower priced sticker than Forien Brands.

During the Gas Crisis Ford was offering $6,000 rebates and Toyota dealers gave no rebates, telling people that they had to pay sticker becuse of the demand.

The prices of US autos seems to be fair and rather reasonable.

kablaam - 12/11/2008 6:49:37 PM

0 Boost

That is exactly the point, the domestics rarely see a profit on each car sold at point of purchase. While it may be true that most of the monies made by car companies are via secondary sales(service, parts, warranties) and financing costs, it's hard to survive when you must play catch up in this cut throat market.

Porschinator - 12/11/2008 7:14:28 PM

+3 Boost

First of all there is a thing called "Cost of Living" and it differs from location to location. Wages should allow a worker to live in the area of work.

Second of all there is a thing called "Skilled Laborers". This goes beyond picking apples in an orchard. Autos need skilled workers to contruct in an assembly line. Also another thing is "Competitive Salary". Would workers be happy if the competition paid more? Happy workers do better. Wages in the 20-30 $/hr is competitive.

The Big 3 have made strides in reducing costs by UAW wages, retirement, and benefits. It got out of hand and Domestic automakers are not the only industry to get assistance from their prespective Gov'ts. What the Big 3 failed to do is make desireable small/compact cars. They are finally seeing the light and I hope it is not too late!

Thedirtmaster - 12/13/2008 11:38:06 AM

+1 Boost

I work for a company called Sun Microsystems in one of their manufacturing factories in Hillsboro Oregon building high end rack mounted servers. It is a rather complex job and is extremely stressful and demanding at times.

Its a low volume manufacturing site, but requires a lot of hard work. I can say without a doubt that the people commenting on this site must not truly understand the hardships blue collar workers have to go through.

10$ an hour to build a car? Do you really want that? You will get a yugo for that price, not a Toyota. Agent 009 stop pretending to understand this situation as you clearly don't. Have you ever worked in any form of a manufacturing job?

Yes 73$ an hour is obscene to be paying someone to build anything, but that, just as most things political, is completely fabricated. This whole thing has gone away from what is important and is a fight about organized labor!

Thedirtmaster - 12/13/2008 11:47:54 AM

+1 Boost

Also another thing to think about here. Most of the foreign made auto companies do not have any, or at minimum very few American manufacturing retirees. The reason being, obviously, is that they have only been building cars in the USA for about 20 years at max.

On the other hand the US auto companies have been around providing jobs to US citizens for around a hundred years. Obviously, or maybe not so obviously, they will have many more employees that they will have to provide for as they are a major part of our economy. In time this burden will also fall onto the foreign auto makers as well once their employees begin to retire.