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Subscribe to this threadToyota workers in Kentucky plant made more than UAW members last year
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hotcams @ Jan 31st 2007 6:08PM
I think that's a smart way. A competitive base, but with a larger variable pay component (10% - 20% of base) in the form of bonuses.
Works well by helping to lower the costs of manufacture compared to rivals. As competively priced car sales rise, variable pay component can be adjusted according to the performance of the entire unit. Gives the company plenty of financial breathing space and helps fend off unionization.
For sure high labor costs aren't domestic manufacturers only challenge.