Opinion/Editorial

The Union Wage Myth

By Peter C. Grosso

Published:March 27, 2009

                                                    

                        As Far as the UAW myth that average employees receive $70hr in wages including benefits.  This is untrue, the way they came up with the big outlandish number is they took the 28 dollars an hour they receive, then added their health benefits, then added their pensions, and they add the healthcare they give to their retired workers, then they add the pensions of the retired workers, and the money paid to the surviving dead spouses of the retired workers.  After taking that large number they divide it by the number of active workers then your answer is now 70.  This is as relevant as asking what the average salary of everybody in the United States, then you add in ever pension, social security check,  and all healthcare costs, plus the actual salaries of the working people in America. If you divide all that by the amount of people working in America then you will get an answer as relevant as the UAW myth.

                           The reality is they make only a few thousand more a year than those in the non-union sector of the industry.   Even the cars build oversea are made by people who receive a similar pay scale.  The Major difference in Germany and Japan is the Government covers both healthcare and pensions. The Non-union sector in American did not build any plants until after 1980 and most in the 1990’s they have far less retired then the UAW.  For every worker in the UAW three are receiving some kind of retirement. For every worker in the non-union sector less than half of one worker is retired. 

                           “Toyota's entire U.S. operation had less than 1,000 retirees. Compare that to a company like General Motors, which has been around for more than a century and which supports literally hundreds of thousands of former workers and spouses. As you might expect, many of these have the sorts of advanced medical problems you expect from people to develop in old age. And, it should go without saying; those conditions cost a ton of money to treat.” Jonathan Cohn

                       In light of the fact that GM and the rest of the Big Three are having a hard time competing because they have competed so well for over one hundred years the UAW has made concessions in their contract to become more affordable and actually cost less than its non-union competitor.  It made these changes in 2007 to do its part to keep the Big Three in Business.  Well over a year has gone by and these businesses had to be on the verge of going out of business before they realized that the big beefy gas guzzlers were no longer what America wanted. Even the Amish Moved to more aerodynamic carriages.    

                       These mistakes were just as irresponsible as those made by AIG and all the other white collar companies that we can’t afford to let fail.  A check needs to be now cut for blue collar America, but with some stipulations in the memo. But to blame the UAW workers for this mess is ridiculous.