Posted on 03/11/2009 11:10:15 AM PDT by SonOfDarkSkies
The Ford Motor Company said Wednesday that its new agreement with the United Automobile Workers union would save at least $500 million a year and, within several years, bring its labor costs in line with what foreign competitors pay their workers in the United States.
Ford said the deal, which U.A.W. members ratified this week, immediately reduces its all-in hourly rate, including benefits, to $55.
It said the figure would continue to shrink as more workers took buyouts and when the new-vehicle market recovered, allowing increased production.
Currently, Ford’s labor costs amount to a little more than $60 an hour, including health care for retirees. Labor costs for the so-called transplant automakers, including Toyota and Honda, have been about $49 an hour in the United States and are rising, Ford estimates.
(Excerpt) Read more at nytimes.com ...
I wish I made HALF that an hour!!!
$8/hour with no benefits is what they should get paid for.
At over $100K per employee, are these the Rich that Obama wants to tax more?
Good work if you can get it!
That was very big of them. Maybe we should take up a collection. Oh the humanity!!!!
Image how ‘rich’ you would be living in a cheap place like Detroit making $55 an hour in salary and benefits??? That would be the equivalent of making $95 an hour and living in NJ or NYC.
But I’m sure the UAW thinks they are all being bent over the barrel and given the Barney.
Good for FORD!... of course that “hourly wage” includes all of the “perks” that that employee never really sees in their paycheck.
At least FORD didn’t take any bailout money. I’ve been driving a 2003 Escape since, well, 2003 and love it. I will buy a Ford next time I buy too.
$55 including benefits is not that far out of line.
If you would like to be added or dropped from the Michigan ping list, please freepmail me.
“I wish I made HALF that an hour!!!”
So do they. The reality is that the rate is not the same as the wage. The rate is fully fringed, including benefits and employer matched taxes. Take your current wage and multiply it by 2.5 and you will have the comparable number.
500 million won’t pay for the toilet paper these overpaid lazy union workers use.
Good for Ford. Smart move.
For a factory worker???? um...yes it is.
Do you get/pay into employer-sponsored health bennies?
Seems every six months we hear the big 3 tell us they are about to bring their labor rates in line with foreign competitors.
It will help, but having a back-seat management (UAW) that isn’t always pulling the same direction is the corrollary of the cost problem.
This is correct, and the wage is comfortable, really middle class. the benefits package (health life vaction sick etc) probably comprises about 20-25 per hour per employee. They get anywhere between 25-30 per hour. While that is alot in a depressed city in MI, it is a pretty comfortable living in most other states IMHO. Good for ford.
” The rate is fully fringed, including benefits and employer matched taxes. Take your current wage and multiply it by 2.5 and you will have the comparable number.”
Mutliply by 2.5???? no.....that doesnt make any sense, not buying it.
The compensation packages that the blue collar employees of the big three aren't that out of line, and they're not that much more than their Japanese counterparts. It's the work rules that the UAW has negotiated and so strictly enforces that does so much damage to the domestic auto maker.
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