Eric R
Lv 6
Eric R asked in Politics & GovernmentPolitics · 1 decade ago

Do you know how much the Big 3 Automakers have to pay someone they layoff due to the UAW? Why bail them out?

$108,000 for the average floor worker as a severance pay, that does not include any of their technical engineers or higher paid workers. Those increase exponentially according to the pay grade.


The argument comes from the point that the American Auto makers cannot downsize their companies as easily when needed because they take an enormous hit when they do. The unions have pretty much single-handedly destroyed what they worked so hard to accomplish with the labor force that they control.

Update 2:

If they can shed the UAW, they can have all the money in the world. The UAW is the core of the problem

3 Answers

  • 1 decade ago
    Favorite Answer

    It's actually worse than that from what I'm reading. The UAW and mismanagement has screwed the auto industry in this country:


    The Big Three automakers are forced to pay 85- to 95-percent of union wages and benefits to members of the United Auto Workers union who aren’t working – even if their plants have been closed.

    Industry analysts say union labor agreements that obligate the Big Three to pay millions of dollars to workers who are no longer working are a major reason why the automakers are in trouble – a problem that no short-term bailout can fix.

    During hearings last week where the chief executives of Ford, Chrysler and General Motors appeared before the Senate Banking Committee, Sen. Bob Corker (R-Tenn.) raised the issue.

    Corker asked Rick Wagoner, CEO of General Motors, why with all of the measures he has taken to prevent a collapse, his company was still not making money.

    “Is it because of the (United Auto Workers) union?” Corker asked pointedly.

    Wagoner, who demurred from answering directly, said that even at plants that are closing, “85 percent” of union employment benefits still “have to be paid.” He said that GM has had to restructure and reduce the cost of operating in the U.S., but the company still pays for employees that are not currently working at “idle facilities.”

    Chrysler Chairman Robert Nardelli, facing a similar question from Corker, confirmed that “agreements are in place” between Chrysler and UAW that, regardless of demand, Chrysler must still operate at a pay rate of 95 percent of wages for employees not currently working at idle facilities.

    Peter Morici, a professor at the University of Maryland’s school of business, told that one of the biggest problems the companies face is the UAW’s Jobs Bank – a program established more than two decades ago that guarantees nearly full salary and benefits to out-of-work employees.

    “Right now if a plant closes in St. Louis and a new one opens in Kansas City, the workers don’t have to move from St. Louis to Kansas City; they can opt to get a $105,000 payout or go on Jobs Bank where they can collect 95 percent of pay for the rest of their lives,” Morici said.

  • 1 decade ago

    The question isn't whether the Big 3 has been wise in the way they've run their businesses. We all know the answer to that.

    The question is whether we think it's wise to risk the ripple effects of a bankruptcy by any of the Big 3 in an economy that is already facing it's greatest challenge since the Great Depression.

    Our economy is already contracting. We are losing jobs and prices are falling. Do we really want to see this made worse with he crippling of the industry at the heart of the US manufacturing base?

    Why the heck is it that we will give tons to the white-collar types at Citigroup without batting an eye, but we find any and every reason to oppose helping an industry that actually does directly impact working class Americans?

  • Anonymous
    1 decade ago

    Yet they still find money for private jets...I wonder why the UAW has made it so difficult to just lay someone off?

    Source(s): Actually the day after the criticism from congress (I know, congress being sanctimonius about spending? laughable...) the company heads got rid of the jets. Wasn't difficult at all...
  • Steve
    Lv 6
    1 decade ago

    I believe it's more like 300 million to lay off top executives.

    Your argument that American workers are getting paid too much just doesn't hold water for me.

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  • Anonymous
    1 decade ago

    thats what unions do to ya

  • 1 decade ago

    Unions Suck!!!!!!!!!!!!!!!!!

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