• Apr 16, 2008
Over the last few years, huge numbers of union workers have accepted buyout packages to leave their high-paying jobs at automotive factories and office buildings. Many of those retired workers will be replaced by new hires at much lower salaries in the coming years. In fact, there could be as many as 46,000 new workers hired in Michigan alone, according to a recent 95-page report (PDF link here) released by the Center for Automotive Research (CAR). This report could mean good things for the troubled economy surrounding Detroit -- but it's not all roses, as the report indicates that more workers will leave through attrition than the estimated 46,000 that could be hired. Also, all of those new workers will require lots of training before they can be counted on as worthy replacements. Still, as Kristin Dziczek, an analyst from CAR says, "The bleeding will stop."
[Source: CAR via The Car Connection]


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  • 66 Comments
      • 6 Years Ago
      you're right, and the "big 3" Jap companies have been building cars in the U.S. for sometime now...I drive a Honda Accord with 179,000 mi. on it, I've put a fuel pump relay, timing belt, and plugs, wires etc. it starts every morning and runs like a champ...my brother's '06 Chevy work van lost the trans. due to a cheaper pilot bushing/clutch plates at the tune of $2100.00...I've had several GM products with the old TH 400 and you couldn't break 'em...sad day in the USA.
      • 6 Years Ago
      The way to fix this is to take every corporate CEO, the next 30 people under him, every Union boss and throw them on a shipping freighter. Then sink the freighter to the bottom of the ocean.

      That is the problem. A CEO, CFO, board of directors, and 20 VPs all making millions a year to preside over the destruction of the American economy. Not one really worth half what they are paid. If you want to make 350 million a year then get on your hands and knees and build every product you make yourself, then you've earned it.

      The UAW shares a lot of the blame. Not the workers but the union leaders. They have had thier pockets lined by special interests for years. The UAW forces production quotas on outdated platforms that have prevented US auto companies from competing with imports.

      CEOs today are tasked with two objectives. Pay employess as little as possible while retaining 9 figure salaries for the top white collar jobs and keep the shareholders happy. Which is the main reason for pay employees nothing. The Unions were supposed to prevent this but failed miserably.

      If the US government wants to do something constuctive they need to hang a closed sign on Wall Street and force the privatization of all US companies, period end of story. Wall Street is the biggest enemy of the American worker and the #1 cause of our curretn economic problems. There is nothign capitalistic about Wall Street today. The entire stock market is built on paper wealth and BS.

      Where we are going is a country where the working wage is too little to purchase a house. A middle class home is already out of the reach of a middle class wage. Making $50,000 a year you can really only afford a house that would have been called a house for poor people 15 years ago. The houses in middle class suburbs are now valued too high to be purchased by the average 30 year old today.
      Alex Vallas
      • 6 Years Ago
      I rented a Dodge while my Infiniti is being worked on. Poor deisgn. There is a tiny back window where I can hardly see what is behind me. The seats are blocking my view from the side mirrors. I had always bought American cars until my current one. There was no trade in value, the cars started to fall apart after two years. That went for numerous Oldsmobiles and Chryslers.
      smooth one
      • 6 Years Ago
      It is so obvious that many of the readers are not union workers because of the comments made. First of all you should not speak on things that you really have no knowledge of(Mike) withthe friends that work for Ford.Just a little F>Y>I not everyone that works for Ford has a production job so they wont reach quota in thirty mins. Also one of the stipulations for buyouts is that the worker not be allowed to return to the company as a lower wage employee. And it is so easy to say that some one is lazy when you have not walked in their shoes. Get your player hatin azz on that line and chase that train day in and day out for 10 to 12 hours and see how lazy a day it is . Auto workers earned every dime that they get . I don't hear anyone talking about the bonuses that the execs get that areseveral time
      s the amount that union workers will make in their entire careers. The reason that the auto industry is in the condition that it is ....is because of ignorant know it all execs. and management personel that know everthing like your DUMB ASS..........
        westmond
        • 6 Years Ago
        @smooth one
        Problem is you guys don't have a clue as to what WORK is. Just wait until you get in the real world and see what it's like, then you'll know exactly what we're talking about.
      • 6 Years Ago
      how is this better? "we're going to hire these new people at a lower rate". What good are unions these days, they weren't any good 25 years ago, now Detroit citizens are suppose to kneel down and praise Detroits 3, for lower wages..pleeze...These have got to be the dumbest corporate CEO's EVER, not to get the car business right after ALL these years! Just look at these 'bread boxes' being produced, square and more square car's, come on Detroit hire great young 'out of the box' designers!!!! Get this pony show back on the road!
        lionel
        • 6 Years Ago
        LET EM SELL THEIR CHEAP JUNK CARS TO MEXICO & RUSSIA & CHINA, HA, SEE IF THEY`LL BUY JUNK !THE MIDDLE EAST ONLY BUYS ROLLS ROYCE & MERCEDES, THANKS TO GREEDY AMERICAN BIG OIL MAGGOTS.
      stnsmok
      • 6 Years Ago
      More propaganda.
      Crafty
      • 6 Years Ago
      Detroit is responsible for the creation of this, so it doesn't matter. http://revver.com/watch/792524
      richard
      • 6 Years Ago
      The Big Three will not hire 46,000 new workers because they offered the buyouts to cut employment. Many of the workers who took the buyout will still continue to work for the big three because they gave up some of their benefits. The rest will retire and there will be fewer new hires as the companies try to streamline the production processes. The Big Three have lost considerable market share and will continue because Americans are finding better quality cars built overseas. The American Autoworkers unions have destroyed the Big Three and has ultimately costs many of these people their jobs.
      • 6 Years Ago
      Don't you get it? The way they are going to reduce these wages is by hiring foreign workers. Alan Greenspan said it best when he said a couple of months ago: "We ought to be opening up our borders to skilled labor from all parts of the world because if we were to do that we would increase the supply of skilled workers that our schools have been unable to create and as a consequence of that we would lower the average wage of skills and reduce the degree of income inequality in this country."

      That's right -- Greenspan wants to bring in more cheap labor to replace productive Americans becuase they suck as students, are worthless, and it would make us more equal with the poor people.

      What geniuses we have running this country! Milton Freedman -- where are you now?
      Lilbitstl
      • 6 Years Ago
      I am an auto worker, so I speak from experience. First, I dare anyone to go and do what we do first before they decide what we should earn. Second, yes we all are concerned about our jobs, and don't expect others to care. Third, to all who buy foreign products, your tax dollars, due to trade assistance and workforce grants our putting us all back to school. Next time you think your doing anyone a favor by buying a foreign car, remember this , we all suffer in the long run. NAFTA is anything but fair, it just makes large corporations laugh all the way to the bank. All consumers and tax payers pay for it too. Oh, and anyone who lashes out at the unions..Do you think these companies are going to lower their prices to consumers when they pay lower wages to their workers? I sincerely hope you don't, because the consumer will never see the savings..
      selouton
      • 6 Years Ago
      Sounds good, but how many of those jobs will go to illegal aliens?
      Jon
      • 6 Years Ago
      They Did A Story On Frontline, Last Year I Think. And This One Guy Retiered Making 50 A Hour With Full Benifets. His Son Worked There Too (At A GM Factory) And He Was Making 40 An Hour With Full FREE Benifets. And His Son Just Started Working There At 30 An Hour Starting Pay Full FREE Benifits. Just Out Of High School. 30 An Hour! I Was A Union Member Before And When We Went Into Nogotiations. The Main Goal Was To Get A Fair Deal For Both Sides. The Big Three Are In Bad Shape And Needed To Do Something. They Are Almost Backrupt. I know 15 Is Not As Great As 30 But It's Still A Great Job With Great Benifets And A Retireement Plan. Not Many Companys Even Offer That Anymore. And The CEO Of GM Took A 50% Pay Cut.
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