Should We Really Bail Out $73.20 Per Hour Labor?

By: Mark J. Perry Monday, November 10, 2008 12:32 AM

Article Author

Bio and Articles
Author's Website

Vote for next session

The next market session will close:

The chart shows average hourly compensation for the Big Three ($73.20) and Toyota ($48.00), compared to average hourly compensation for Management and Professional Workers ($47.57), Manufacturing/Goods Producing ($31.59) and all workers ($28.48), data available here.

Should U.S. taxpayers really be providing billions of dollars to bailout companies (GM, Ford 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 and Volkswagen take over the U.S. auto industry, and restore realistic, competitive, market wages to the industry. It might be the best long-run solution.

Bookmark:
Email
Print


12/19/2008 9:07:31 PM Retired by Ollie Casteel This is a totally inaccurate assessment of current wages. Current employees have had reductions in actual wages and benefits for the last ten years. Our foreign competitors have no retirement benefits or health benefit costs in their home countries. They have national health plans that are not available in our country. Ask the U.S. senators what health plan they have. Why isn't it available to all federal employees and military? What pension plan do they have? Why isn't it available to the other federal employees? At least the Canadian newspapers vet their commentators and they contest the claims. Why not here? Reply Rating: (0) (0)

This is a totally inaccurate assessment of current wages. Current employees have had reductions in actual wages and benefits for the last ten years. Our foreign competitors have no retirement benefits or health benefit costs in their home countries. They have national health plans that are not available in our country. Ask the U.S. senators what health plan they have. Why isn't it available to all federal employees and military? What pension plan do they have? Why isn't it available to the other federal employees? At least the Canadian newspapers vet their commentators and they contest the claims. Why not here?

Rating: (0) (0)

Post Comment

Name:

Alert for new comments:

Your email:

Your Website:

Title:

Comments:

The above story is the opinion of the author only and it does not reflect iStockAnalyst opinion. Further, the author is not personally advising you regarding the suitability of the story for your investment needs. In no event iStockAnalyst will be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from or arising out of, or in connection with the use of this information. Please consult your investment advisor before making any investment decision.

Related Stories