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No politics, just economics.

The UAW are on strike, reportedly wanting a 40% pay increase, shorter work week, better job security.
The reasoning goes: CEOs got a 40% raise, so should the workers.

OK, I do believe the CEOs are ridiculously overpaid:
Barra $29m
Farley $21m
Tavares $25m

12,700 UAW workers.

https://www.reuters.com/business/autos-transportat...
The automakers have said the UAW demands could hike the current mid-$60-per-hour labor cost to more than $150 an hour. GM said on Thursday the UAW wage and benefits proposals would cost it $100 billion, while Ford's Farley said a 40% UAW wage hike would "put us out of business."

Tesla and the Chinese are already taking bites at their lunch.
All big three are out of the small car market.
Ford is getting out of the small "generic" SUV market.
GM got out of hybrids (mistake, IMO. Ford are getting back into hybrids).
GM's new small SUV is built in Korea.
Ford's cheap small "car" (Maverick truck) is built in Mexico.
All 3's EV offerings are pitiful.

It all sounds very familiar to me. Take a look at the history of the British car industry...management mistakes, union demands, products that fell behind, poor quality, dead industry.

AdrianC: The automakers have said the UAW demands could hike the current mid-$60-per-hour labor cost to more than $150 an hour.

How, exactly, are automakers calculating that $60-per-hour labor cost?

CBS News: Top-tier workers -- meaning anyone who joined the company in 2007 or earlier -- make roughly $33 an hour on average, contract summaries for the Big Three show. Those hired after 2007 are part of the lower tier and earn up to $17 an hour based on a buildup of 6% annual raises under the last contract.

Washington Post: Full-time employees at the Big Three make $18 to $32 an hour, depending on seniority.


https://www.cbsnews.com/news/how-much-do-uaw-worke...

https://www.washingtonpost.com/business/2023/09/14...

'The UAW are on strike, reportedly wanting a 40% pay increase, shorter work week, better job security.
The reasoning goes: CEOs got a 40% raise, so should the workers.'

Are they making these demands this with a straight face? We all would love that work 20% less, make 40% more and have better job security. In medicine, Medicare and ins. company leaders would have been laughing hysterically with such requests in my field. Human nature to feel underpaid and under appreciated.

Glad I've owned 100% quality Japanese vehicles for 40 years given all this recurrent drama, mismanagement, bankruptcies and bailouts over the years. Not sure which is worse- the airlines or autos?! I've often wondered why BRK retains a position in GM, albeit under $1B.

How, exactly, are automakers calculating that $60-per-hour labor cost?

Don't know.

It does cost a good deal more to employ someone than their hourly wage, of course.

Mrs.C. says in her previous life as a plant accountant they would include an extra 50% for overhead costs (benefits, social security, etc) when budgeting.
IIRC that's about what it cost me back when I employed people. That was a long time ago and I expect it's more now. Health insurance costs very much more.

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