Saturday, April 25, 2009

CAW Wisely Agrees to a $19 Wage Cut at Chrysler--Another I TOLD YOU SO

Should a trade union accept a painful $19 per hour wage cut when we are in the middle of the worst recession in 75 years, when all of the Big Three auto-makers are teetering on the edge of bankruptcy? Of course it should! As I said last November , unionized workers in Detroit make make 15% more than non-unionized workers in the sunbelt, while Canadian workers make 15% more than workers in Detroit, thanks to Canadian medicare system that makes such a wage dividend possible. That's a total wage gap of 30% more than the closest financially healthy major auto maker (Toyota or Honda). Unsustainable in these circumstances, and probably unsustainable in the long run under any circumstances.

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