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Remember this the next time you go to buy a car and you wonder why the price has jumped so much.
So keep worker pay low so you can drive a car that costs less? There really is something disturbing about that.
Ninety-five percent of price increases for motor vehicles are attributable to OTHER than labor costs.
Incorrect Nancy. Labor costs make up approximately 35% of UAW vehicles (before this new contract negotiation). Non UAW labor costs per vehicle average 20%. You have to remember, labor costs are more than a guy standing on the line inserting a bolt. Labor costs include the Union person mopping the floor on a production line (not the bathroom, but the actual assembly area is factored in). There is a reason that most foreign companies have factories in non-union supported states in the Sothern part of the US, cheaper labor costs and no Union organizing pressure in right to work states.
Labor cost per hour on average ( wages and benefits ) for the UAW car companies is much higher now than for the non union plants.
The Big Three will have to pass the cost on to the consumer.
These new UAW contracts could lead to job losses in the near future.
L N. , Keith B. my fear is you’re both mostly correct. Only time will tell.
The news stories have suggested that this contract would add an increase of $800-900 per vehicle.
On a $40-70,000 new vehicle, in the range of 1.25-2%. That’s not nothing, but it’s certainly minor in terms of monthly payment over 4-6 years.