The average wage at Ford Motor Company for permanent hourly employees is $31.64/hour according to one source. That equals nearly $66,000 per year. The median household income in the US is approximately $48,000. Interestingly, the average salary for a college graduate is $46,000. While I completely respect skilled blue collar labor, I don't see car factory workers as "skilled". Maybe I should--who knows. I once heard an employer say that he wanted employees with blue collar hands and white collar minds. That would make for a pretty good employee if you ask me. Truly skilled employees deserve all the income they make regardless of their education levels. The problem with factories--especially auto manufacturers--is that their employees possess no special skills as far as I can tell, and yet they make far more than the average employee. Most blame unions for this. While unions had their place decades ago, they are mostly part of the problem in this day and age.
Steve Forbes recently said Ford would be highly profitable if it operated in another country. We have a country rich in automobile tradition and yet none of our major car makers can survive here. Other manufacturers, namely those from other countries which have non-union workforces, are quite profitable.
Steve Forbes recently said Ford would be highly profitable if it operated in another country. We have a country rich in automobile tradition and yet none of our major car makers can survive here. Other manufacturers, namely those from other countries which have non-union workforces, are quite profitable.
Earlier this year, the big three offered buyouts to their employees in an effort to reduce their workforce. The offers were staggering--many over six figures.
Lately oversight and regulation are two of the most common buzz words around. There's no shortage of either in this industry--think of all the safety regulations, mileage requirements, and emissions standards. Couple this over-regulation with higher wages than all their competitors and it's no wonder they aren't profitable.
More recently, $25 billion was given to the auto industry in an attempt to keep them afloat. Now they're asking for another $25 billion. We can only wonder what they'll say they need next... My thought is that we should let them fail. I know, there would be unintended consequences that wouldn't be pretty--10% of all jobs are associated with the auto industry according to the media. I still say let them fail. The system is too broken to be fixed. The unions have killed the golden goose. It's time to revamp the whole system, start paying people appropriate salaries for the work they do, and tell the government to get out of the way.
Unfortunately, the UAW bought at least four more years of beating the goose when they donated over $3 million to the Obama campaign. No change in store here, I'm afraid.
What do you think--bail them out again, or let them fail and start over?
2 comments:
That's a tough one. I'm no unions expert but it seems to me they are the main problem. I'm inclined to let them fail for the reasons you laid out. I almost feel the same about our government. It's too big to fix in meaningful ways.
Most of my family members have been or are currently employed as part of the automotive industry. I believe that unions had their purpose and in some areas still do, but I think it should be limited to factory safety and equality in employment within unskilled laborers However, what has happened is that unions have screwed it up for the rest of the people. Currently, companies are not direct hiring anymore people that would join the union and cause more money loss. They are hiring from temp agencies and after 89 days they are fired. Thereby not providing any benefits, how is that fair for others just trying to provide for their families?
At Navistar they actually have a union for the white collar jobs. That just breads mediocrity. No matter how much knowledge you attain, extra work you do, you will not be promoted before everyone before you are promoted. Last year, Navistar made a deal with the union strikers stating before anyone within the union gets fired they have to get rid of all the contractors first no matter how valuable they are.
Okay, obviously I have issues, sorry for the long post.
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