• Apr 5, 2008
Just hours after threatening to strike at one or more GM plants, the UAW and the General have agreed on two-tier wages for certain job types. The move to clarify which jobs were "non-core" at the national level came as local UAWs were threatening to strike because they felt GM was asking for too many lower-paid positions at their plants. The more regimented deal identifies 16,000 positions that will soon be paid $14 per hour, which will save GM up to a half-billion dollars per year. It will take years to fill all of those positions because GM has to entice existing workers to retire before they can be replaced.

[Source: Detroit News]


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  • 25 Comments
      • 6 Years Ago
      I again raise the point.Why did the cars go up in price when production shifted to Mexico?
      Mexicans are paid less,costs went down.Price goes down.More people can afford your product,which means more sales which means more profit. Why do other manufactures come to America and turn a profit?
      There is a lot more going on here then wages.
      If it is really that bad just automate the assembly line and eliminate all wages/health care/retirement costs.
      • 6 Years Ago
      Well Paid workers become consumers and pay tax.They buy cars.Low paid workers buy nothing,contribute nothing to the economy.Unions came about for a reason.Car production was shifted to Mexico,no unions and no wages.Result,price increase.Why?If wages are THE problem just get rid of the wages,reinstate slavery.Increase the CEO pay for adding to the bottom line.Everyone should be happy then.
        • 6 Years Ago
        Your logic is flawed.. how do you get from low wages to slavery?? Employees need to be justly compensated for what they do, but overpaying a worker in a market as competitive as cars makes no sense. Over the years, GM have been overpaying their workers in wages and compensation. GM lost $146 per car in 2006 - they either have to raise prices more, or reduce cost. And with sales declining, that puts even more pressure on profits. They're trying to run a business and make a profit - that is the incentive to be in business, is it not? They're not running a charity.
      • 6 Years Ago
      Over the last 20 years GM has spent over $100 million dollars more on healthcare alone in this country compared to the foreign competition. GM needs to build better vehicles, they need to listen to the customer much more closely but the cost advantage of it's main competition is so much better it had become a iimpossible game to win. If you have a business and someone moves in next door that can produce as good or better product for 30% less you go out of business. All of this is a real blow to the middle class of this country, who is responsible? Blame free trade I guess.

      roar
        • 6 Years Ago

        I think you mean $100 billion not million.
      • 6 Years Ago
      GM and the other domestic OEMs really can't afford the UAW.

      The Unions display all the same shortsightedness that they accuse the manufacturer of having.

      Sure, sure, sure: if the company designed a car people will buy, the UAW can assemble it affordably.

      But, if by some chance, the market runs to a competitors product, the UAW understands that plants close..., right?

      No they don't; their workers are ENTITLED to jobs for life, whether they make anything or not.

      With the dollar worth so little, foreign brands may be able to afford the UAW.

      Export the units and let the European, Chinese or wherever customer pay for the UAW, right??!!

      Many working Americans don't sympathize because the circumstances are nuts.

      Lots of Toyota, Honda and Nissan cars are assembled in the US, and Americans buy them in droves, and there's no UAW.

      Is there a link?
      • 6 Years Ago
      By some of these comments it seems that workers are supposed to compete with China at 50 cents an hour. Did anyone ever say that Bill Gates made 52 Billion? Wonder how much an hour that would come out to? 1
      $12 an hour if poverty... Is that what workers are worth?
      • 6 Years Ago
      That's another $500 million saved to put into top executives' pockets.
        • 6 Years Ago
        Considering how well the turnaround is going and the horror that GM faced just a few years ago...

        I think they deserve it.
      • 6 Years Ago
      EXACTLY S-isS
      • 6 Years Ago
      The UAW worker has been babied way too long. They are like spoiled children. They are way overpaid. By comparison I repair CT and MRI scanners, I am the specialist for five states (when the normal engineer can't fix it they call me). My wage is $33 per hour and I am "on-call" which means I get called out at 2am to repair these machines that save autoworkers and their families lives. A lot of times my job takes me away from my family overnight for weeks at a time. I deal with contagious diseases that are left behind on equipment by patients. Everytime a "UAW contract" is signed the prices at the stores go up in the Detroit area. So please stop your whining, you big babies. You killed the goose that laid the golden egg and you deserve to be put in your places.
      • 4 Years Ago
      Tier 2 employees are working the same jobs as Tier 1 employees getting half the pay and half the benefits. It is sad to see how far down the Union has gone and what they are letting GM get away with. What happened to equal pay for equal work....?
      • 6 Years Ago
      As a college student, I wouldn't mind making 14$ an hour ;)
      • 6 Years Ago
      I understand that your qualifications, experience, seniority, accountability, and hours worked should dictate your salary. I cannot understand how in a single year, an employee of a company can make 31 times more money(only salary, not including benefits)than a another. I cannot understand how a company can justify a pay raise for the highest paid employee, whom should be the most accountable for losses, while decreasing the pay for the lowest paid, least accountable.
      • 6 Years Ago
      General Motors likes to threaten individual plants with closure to garner more concessions. The International stepped in and rightly negotiated directly with the corporate office to end the whipsawing.

      If there are genuine cost cutting concerns, they can be applied equally across the workforce and not bullied on a factory by factory basis.
        • 6 Years Ago
        One of the plants in dispute is the Delta-Township plant. GM would never close that plant since it just opened.......
        • 6 Years Ago
        I've seen the company spend millions renovating plants only to close them a year later.

        Anyway, Whitie, why exactly do I need a "reality check"?
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