UAW Salaries: Not $40 an Hour!

06/18/96

The UAW's triennial contract negotiations have begun, and the UAW will be trying to win job security, better working conditions and a better standard of living for employees from the Big Three U.S. carmakers. We've all heard that auto workers already make $40 per hour, and with negotiations underway, we're sure to hear it again. Don't believe it, though, its not true.

The UAW reports that a typical UAW member at the Big Three makes $19 an hour, less than half of the figure you constantly hear. A skilled trades worker makes only slightly more than that at $22 an hour. Its a good wage, and the UAW has worked hard to maintain it. Some say its too much and that high wages hurt the companies, but that argument doesn't hold water: the big three automakers have continued to rake in big profits for each of the last three years, even while paying workers a decent wage.

If auto workers make less than half of the $40 dollar figure, where does the number come from? Its the total labor cost per hour and includes everything it costs a company for each worker employed, not the money workers put in their pockets. It includes the cost of all benefits (overtime and shift premiums, pension credits, health insurance, SUB benefits, profit sharing, and tuition sharing), plus the cost of all benefits paid to retired workers (pensions, health care, life insurance, etc), plus costs required by law (social security, workers' compensation, etc).

Paul Dever -- The Auto Channel