UAW wages

Implications: The media often overstates the wages of autoworkers by using figures that that the OEMs provide.  Autoworker wages may even be lower today due to changes in staffing and the OEMs Special Attrition Programs

Analysis:

In the media, we often see UAW wages overstated especially in comparisons to foreign transplants.  According to UAW, average straight-time pay for assembly workers is $27.81 per hour and $32.32 per hour for skilled trades in 2006. This number is even lower in 2007 given the Special Attrition Program, the tiering of wages, and dramatic increase in temporary and contract workers in assembly plants today. 

 
Furthermore, OEMs inflate labor costs figures they provide to the media to include overtime, vacations, shift premiums, education and training and even statutory costs such social security, Medicare, and workers compensation. In the most egregious cases, the number includes retiree benefit costs of those who are not even on the company payroll.  <>

If we  look at the overtime issue alone, we find today that many UAW workers are working as many as 60 hours per week.  Rather than hire additional employees, OEMs are extending hours of current employees. Not only does this  inflate average wages, it also raises health and safety concerns, increases workers compensation costs, and undermines family life. 

So when looking at the figures, it is a good idea to be skeptical and compare apples-to-oranges.