Before one compares the unionized Detroit auto workers
to the non unionized Toyota ones - as was earlier on NBC News - someone should compare the compensations of top executives in both companies, and compare the ratio of CEO compensation to that of the average worker in their organizations.
And then see if the proposal that Ford and GM should rid themselves of retirees' benefits hold water.
2. Seldom pointed out is that the Japanese components are manufactured
in Japan. Then the units are shipped here and assembled by a small fraction of the workforce required for a domestic company.
They only do enough manufacturing here to satisfy the requirements for a "made in America" label. This helps them avoid import tariffs. I'm glad that some of the work is done here, but the costs aren't the same as those faced by US auto manufacturers who deal with domestic suppliers as much as possible to avoid shipping costs and logistic problems.
Because of unfair trade laws the domestics now have incentive to follow their lead and build components at what Ford calls "least expensive country price", then do final assembly here. (if at all) with a much reduced American payroll.
When companies like Ford and GM say they're going to close half their plants here the media implies that they're going to just stop building half their cars. The rest of the story is that they will continue to build the cars..... just not in this country.
In small town Wisconsin where Governor Thompson once asked "What's wrong with $6 an hour?" when people complained that the new jobs he was bragging about only paid that. This plant paid $7.15 in 1997 but they were openly anti-union. I only worked there for six days. It was pretty rough work, and my old employer gave me a raise to keep me.
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