It is particularly galling to the United Auto Workers (UAW) that, in addition to numerous rounds of layoffs and givebacks dating back two decades, the union is being cast as the enemy in the U.S. auto industry's fight to survive.
The photo above shows a European version of a Ford Fiesta as it rolls off the assembly line in Cologne, Germany. The European Fiesta is a larger car than the Fiesta once made for the U.S. market.
Maybe Ford should stop making cars in Detroit and make them all in Mexico or Europe and give the United Autoworkers Union the boot.
Our contracts with Chrysler, Ford and GM represent only 10% of the cost of assembling of a vehicle. But most days, it seems like we get 110% of the attention," said UAW president Ron Gettelfinger (pictured) in a recent speech.
In the wake of GM's most recent quarter, in which the company lost $9.6 billion — $30.9 billion on the year — the fight is getting more desperate. So the union is back at the table, negotiating more relief for the Detroit Three.
Regardless of how Mr. Gettlefinger tries to explain the UAW high wages, the reality is that GM officials say the average wage reaches $39.68 an hour, including base pay, cost-of-living adjustments, night-shift premiums, overtime, holiday and vacation pay. Health-care, pension and other benefits average another $33.58 an hour, GM says.
That equates to more than $82,000 per year based on a 40 hour week. Health-care, pension and other benefits adds another $70,000.
At congressional hearings in November over a proposed bailout bill, there was palpable contempt for the UAW from Alabama Senator Richard Shelby, whose state is home to several transplant automakers.
To him, the UAW seemed to consist of a bunch of overpaid featherbedders who couldn't match hubcaps with workers at transplants like Toyota and Mercedes Benz, who did not enjoy the Big Three's gold-plated benefits.
The United Autoworkers Union image as the Villian of Detroit seems to be a well-earned label.
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A picture of my cave
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