Rich auto worker a myth: CAW

[Omaha Steve]

http://www.thestar.com/Business/article/622188

Stung by view that Chrysler wages are exorbitant, auto union says some have tried to mislead public

Apr 22, 2009 04:30 AM
Tony Van Alphen
Business Reporter

Stung by public perceptions that auto workers receive big pay and should accept deep concessions at teetering Chrysler Canada, their union has pushed back with its own reality check.

In an unusual move, the Canadian Auto Workers released a report yesterday attempting to debunk the view that union members get more than $75 an hour at Chrysler.

The real pay figure is actually closer to $44 an hour for the highest paid production workers and that includes current benefits and pension costs, according to the 11-page CAW report.

"Some of it could be an innocent misunderstanding," said CAW economist Jim Stanford, who wrote the report. "Some of it is deliberate to mislead people about our true compensation. Either way, there is an incredible misunderstanding out there that we have to correct."

The union and Chrysler have engaged in a war of words during current tense negotiations for concessions that the automaker is seeking so it can survive and qualify for about $2.9 billion in loans from the federal and Ontario governments.

Chrysler says it needs much deeper concessions than the union negotiated earlier at General Motors, which itself is requesting between $6 billion and $7 billion.

In its negotiations, Chrysler indicated last month that "all-in active labour costs" totalled about $76 an hour and it needed to slash them by $19 so it could compete with Toyota and Honda here.

FULL story at link.

[moez]

1. That $75 per hour number comes from

University of Michigan economist Mark Perry. I don't know his background. When I google him, I keep coming up with people refering to his study such as this:

http://www.studentnewsdaily.com/daily-news-article/union-workers-at-big-three-automakers-average-73-an-hour/

[Winterblues]

2. Take all Labor costs and that includes all retirement benefits

and then divide it by number of employees and that is what you get. People that retired ten years ago but still drawing their earned retirement benefits make it seem like those working now are making much more than they are. It is a false number. Eliminate all Retirement benefits from the equation as those workers are no longer employed there. Take only the payroll figures and you will come up with less than half the $75. per hour figure and that includes all health benefits that the company pays (including those for upper management). They have deliberately distorted the figures to help break the Union.