Category: News Author : Duncan Riley Posted: March 11, 2009
Tags : bailout, car industry, chrysler, fail, ford, gm
Ford and Unions negotiate a pay cut…to $55/ hour

The criticism from the right blaming autoworkers for the demise of the American auto industry hasn’t always been fair. It isn’t the fault of workers that the big three have produced products people don’t want; management fairly takes a big share of the blame. But then you read these stories you can see partially where the right was coming from.
Reuters reports:
Ford Motor Co expects operating savings of $500 million per year from an agreement with the United Auto Workers that will push hourly wage rates into the “ballpark” of foreign-based rivals, the company said on Wednesday.
The agreement trims average wages and benefits for UAW hourly workers to about $55 per hour this year, while the U.S. operations of foreign-based automakers — or what executives call “transplants” — pay workers on average $48 to $49 per hour, Ford said.
That’s right, $55 per hour. If they work a 36 hour week or longer, that’s $100,000 USD a year, and that’s the reduced pay.
Now I’m all for people getting paid what they deserve, and many of these assembly line jobs could involve a fair bit of technical knowledge. But in a market that in part has been killed by cheap Asian imports, and where many Americans struggle to find jobs, let alone get $10/ hour, workers at Ford have their pay cut to $55/ hour. And a non-American owned company pays workers in the United States $48-$49 per year.
Ford didn’t take a handout from the US Government, but presuming their pay rates are similar to workers at GM and Chrysler, you can safely say that this is part what the auto industry bailout is paying for. Your taxpayer money at work indeed







Mar 11, 2009
Apparently I'm stalking you guys right now.
Anyway, that's more than your average programmer makes. And alot more than most college graduates make for alot of their lives.
Yet these are “skilled” (but unskilled all the same) manual labor jobs? That makes sense.
They're just a few thousand short of what bottom-level executives make in a year.
–Kyle
Mar 12, 2009
I believe that when they say $55 an hour,it refers to hourly wage + benefits+ pension contributions+ ? else.Please tell me I'm wrong ……
Mar 12, 2009
I really hope that $55 an hour was a typo! And they say that number is the “average” so you know some of the employees doing the same thing a trained monkey (not to mention simple robotics) could do are making around $65 per hour. Lets do some more math shall we!
At $65 per hour and 40 hours a week that is over $135,000 salary each year.
With 10 employees working on 1 car for 1 week would equal $26,000.
Not much profit is left after paying employees and materials and any other overhead.
Am I the only one who thinks this is CRAZY?!?!
Apr 3, 2009
You must be a union thug. Only they could add 30% by deducting it. Benefits typically add 30% is correct, that means these people are actually costing Ford 130,000 a year.
What a crock. These idiots are going to put themselves out of jobs, as they deserve … well, except that Obama, who was bought and paid for by unions, is going to steal taxpayer money to keep paying these idiots.
May 12, 2009
your all idiots – cars roll off the line every 45 minutes – $55 an hour is fine hell pay them $100 – get what you can