Posts tagged wage costs
Why the Obama era ‘car czar’ thinks striking autoworkers risk overplaying their hand
October 3, 2023 // Because you have to put the whole thing in context. GM and Ford and Chrysler are doing quite well at the moment. They have cash, they have profits, they have the ability to pay them more, but they also have to compete against other companies. And in the South, you have companies like Toyota and Honda that don't have unions at all. In Mexico, you have workers making literally $9 or $10 a day and are very productive, according to what auto executives tell me. And so, if the Detroit companies have an excessively high burden of wage costs, or fringe benefit costs, then they can't compete. They lose car sales. Ultimately, the workers lose jobs and the jobs move to these other places.