Anonymous asked in Business & FinanceCorporations · 10 years ago

How are UAW workers salaries structured?

Read an article today in Forbes on how Mulally turned Ford around. One thing that caught my eye was the fact that he negotiated the average UAW hourly rate down to $55 per hour from approx $75 per hour. Are these workers putting in a typical 40 hour week, or are they on shift system or something that puts them at 25 hour work week?

Not to demean a line worker position, but I cannot wrap my head around how a company could afford to pay someone with, most likely, only a high school education $144,000 per year ($55 p/h x 40 hours p/w x 52 weeks p/y). Some people with Masters Degrees or PhDs will never even obtain these levels of pay. Must be missing something here.

Would like some feedback from someone who has either worked for union, or has some experience with the topic. I personally do not support or believe in unions, however, I am not looking for hateful comments towards them..just the facts.


Does the high hourly rate include benefits?? Just seems too high for straight hourly pay.

3 Answers

  • Anonymous
    10 years ago
    Favorite Answer

    First of all, that $75 per hour rate was derived by taking all active and retired workers salaries and benefits in to the calculation. The hourly rate of a UAW production worker is comparable and when you factor in the profit sharing of a comparable foreign transplant (Toyota, Honda) may even be less then what they make. The average starting wage for an employee could be as low as $9-$12 hour (parts facility which may be represented by the UAW). Auto manufacturers could start out at $12 an hour and full benefits do not kick in for 3 years.

    As far as salaried personnel, their wages and benefits are in-line or better than the employees they manage.

    The $75 hour was made famous during the congressional hearings on the bailout and for the most part is inflated.

  • 10 years ago

    You might work at an union plant some day as a manager.

    You'll notice that these union workings bagging dirt make more money than you do.

    And you as a manager, can not fire them unless they do something horrendously wrong- even then you'll face problems.

    This is why you hear some people say "unions are the death of our economy".

    They force employers to outsource for cheaper labor.


  • ?
    Lv 4
    4 years ago

    The UAW doesn't actually care about the workers, it cares about the slice they get from that $70 per hour FTE cost. The major deal breaker was the layoff pay thing. The UAW needs to move on this one.

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