- Jul 17, 2004
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Say GM files for bankruptcy...
- Thread starter EightySix Four
- Start date
well the bankruptcy judge could void all their union contracts so they don't have to pay absurd amounts of money for labor and then maybe they will be successful again...
- Jul 17, 2004
- 5,122
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- 91
Capt Caveman
Lifer
- Jan 30, 2005
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sactoking
Diamond Member
- Sep 24, 2007
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$25/hr at Toyota
$27-28/hr at UAW
These are average wages.
The AVERAGE Toyota wage earner gets $52,000 per year. The AVERAGE UAW wage earner gets $56,160-58,240 per year. This is in regions (Michigan, Mississippi, Louisiana, etc.) where the average wage is $12-13/hr. These jobs are also unskilled labor. If that isn't an 'absurd' amount of money for the region and skill, then neither is $250,000,000 for 9 months as a CEO.
Fenixgoon
Lifer
- Jun 30, 2003
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IIRC, they get something like $30/hour not including benefits (though new hires are much lower).
$30/hour is 60k/year for "unskilled" labor.
i'm not putting anyone down.. but that's better than many "skilled" out of college jobs (ie, engineers start, on average, around 50k-ish)
- Mar 20, 2000
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oh sorry it was $48 total benefits per hour at toyota and $74 at GM. no idea if that considers GM's job bank. if it doesn't, then the GM number is ever worse in comparison to toyota. the latest contract might have helped that difference a bit but that's like letting someone have just enough air that they choke even more slowly.
you guys are wrong in looking at the wages per hour. that is not what is killing GM, its the pensions they are still paying out.
But if all the other automakers are paying their workers a salary that's in the same range as that, how can you say that GM's salary is too high?
As another poster has said, it's not the salary of the current workers that's killing them, it's paying the salaries of employees that are no longer working there that's killing them.
sactoking
Diamond Member
- Sep 24, 2007
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Ummm... the Japanese automakers have had huge gains in their American wages for the sole purpose of trying to prevent their workers from unionizing. So, wages are ridiculously high across the board because UAW has been reaming the big three.
Edit: It's both, 91. They're getting killed b/c they're paying $25/hr for $15/hr work and they're also getting killed b/c they're paying what amounts to $15/hr for no work (retirees).
Edit: It's both, 91. They're getting killed b/c they're paying $25/hr for $15/hr work and they're also getting killed b/c they're paying what amounts to $15/hr for no work (retirees).
Jeeebus
Diamond Member
- Aug 29, 2006
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they would file under Chapter 11, stock trading would freeze, they would be allowed to reject certain leases/contracts, unsecured debt would be traded, they'll re-emerge in a year or two and stock will begin trading again (new stock... old stock vanishes into the void, as well as all stockholders).
ultimatebob
Lifer
- Jul 1, 2001
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If they do go bankrupt, GM would probably get to offload that pension burden to the Pension Benefit Guaranty Corporation (PBGC), much like United did when they went bankrupt.
That would probably result in a big cut in pension benefits, but it's better than nothing if the company ends up being liquidated!
well regardless of being one thing or another, the point is when you add all their benefits together they are making more money then most college graduates for an unskilled job. You could pay people overseas (or even non-union workers) much less money for the same product. Something like $2,000 of each car bought is just for healthcare and pensions, if you could pay $2000 less for the same car why the heck would you buy one from the big 3?
I may be rusty on my history but when has a big automaker gone bankrupt? also its all how GM handels it, to many people would see it as a nessesary step to shed the union.
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