They're asking for a 40% increase and a 20% shorter work week plus other goodies. The offer is already 20% so whatever they settle with is going to be dramatically more than they're getting now which of course the consumer will pay for. So what do you think this will do to the price of a new car which is already a 6 or 8 year financing plan for a lot of people?
The prices will go up, of course.
A little background would be helpful. What's the average union autoworker making now? When was their last pay bump? How much was it?
40% sounds utterly nutballs to me.
Fire 'em all! Hire illegals.
Sounds like SWMBO isn't getting a new lexus this year is what it sounds like.
stuart in mn said:The prices will go up, of course.
I suppose I was thinking about the question in a more holistic manner. Very few people would be surprised if the price did not go up, but the questions are along the lines of, Will it cause financing company to offer even further extended terms? Will people turn to leasing rather than purchasing their cars more? Will it have a knock-on effect on used cars that causes further hardship for those who cannot afford a new one? Will warranties expand to fit the longer timeline that a person is making payments on their vehicle? Will buying habits change after one of the largest purchases most people ever make after a house jumps dramatically in price? Will wages in other industries follow suit?
That kind of thing as opposed to if the cost of production is increased will the sales price increase.
I think the prices of the junk in my yard are going to go up.
Don't forget about parts for your junk, that too will go up.
This article is interesting:
https://abcnews.go.com/Business/soaring-ceo-pay-commands-spotlight-uaw-strike-big/story
And here's something from AP News to catch everyone up to speed: https://apnews.com/article/auto-uaw-workers-strike-gm-ford-stellantis-7ce3ca9d94b911250d07556b7af376c7
TL;DR: 13,000 auto workers at Ford, GM and Stellantis plants went on strike on August 15. The cause? UAW points to the increase of CEO salaries while those of the workers remain stagnant. In addition to wage increases, there are also some other demands like an end to varying tiers of wages for factory jobs, pension increases for retirees and the restoration of traditional defined-benefit pensions for new hires.
I will just watch from here.
It will slow the return of prices to normal levels from pandemic levels, but I doubt it will actually cause prices to climb.
Nobody complained about car prices when my big bosses gave themselves raises and stock options on top of that. Why now?
Besides, most of the 2008 concessions that were "required" have not been given back in spite of the nice profits.
The real big deal is that the upper management bonuses are considerably more regular in size than the minions. So realistically, they are not bonuses. So the UAW would like to see the bonuses become fixed and not variable. Especially when the minion bonuses are largely a reflection of management decisions vs their hard work. So if someone makes a last sec cut and causes a $1B warrantee problem, we suffer when they don't. Hardly a way to motivate your work force.
Mndsm said:Sounds like SWMBO isn't getting a new lexus this year is what it sounds like.
Aren't Lexi made in a merit shop in KY or TN?
alfadriver said:Nobody complained about car prices when my big bosses gave themselves raises and stock options on top of that. Why now?
Yeah funny how when anyone complains about executive bonuses, we're told not to worry because it's not a zero-sum economy, that the execs earned those multiple working-Joe lifetime incomes over the last quarter, and that the money didn't come out of anywhere else, it just descended into their Swiss bank accounts like manna from heaven.
But give hands-on workers a morsel of the last half-century's productivity gains, and it's going to double prices, ruin the company and then crash the economy in one rapid cartoon trainwreck.
Is there another ceo who would do as good a job for less money? Let the free market decide! Executive pay will then stabilize at a sustainable market rate....that's how it works, right? ;)
Joking aside, the middle class has suffered serious wage stagnation over the last 40 years, while executive pay has not. I hope we see a better balanced pay environment moving forward. Strikes are a part of that.
Prices are going up no matter what they pay these guys. The auto companies have already decided to stop making small hatchbacks and midsized sedans in favor of big SUVs and Pickup Trucks because more profit. Most of the middle class can already not afford new cars. They are already giving out 20 year loans for boats and RVs. Why not cars too. Lots more jobs for the repo men.
I'm keeping my old beaters running and buying stock in Autozone and O'Reilly.
If I was a dealer I would cut any discounts, if I was giving any. No vehicles are being made - hold onto my inventory for more money.
Tom Suddard said:This article is interesting:
https://abcnews.go.com/Business/soaring-ceo-pay-commands-spotlight-uaw-strike-big/story
If the workers can do the job of the CEO, they should get CEO pay. Putting a mirror on a Jeep pays $X, CEO pays $Y. If your only skills are screwing a mirror on, then that's the rate.
I use that example because there is a guy that screws the mirror on the Gladiator that is on FB complaining he is "forced to work 60 hours" a week. He is currently "maxed at $26.55 an hour".
$26.55 at 40 hours is $1062.
$39.82 at 20 hours (1.5x for OT) is $796.40
$1,858 per week, plus health insurance, plus retirement to screw on 3 screws in a climate controlled clean shop, seems pretty good to me. He did not dispute the numbers, just said it should be more because of the record profits. When asked if they make no money next year will he take a cut? "of course not, why would I"
Just like the housing thread, looking at what others have and thinking you deserve part of it "just because" is foolish.
Guying making 75 million loses his job tomorrow.
Retires into the sunset, never having to work a day again, living off investments, or buying some land for his future heirs.
Guy making $75k loses his job tomorrow.
Immediately starts applying for unemployment and new jobs. Risks losing home. Potential long term financial impacts.
Let'em strike.
Not sure that I'm remembering this correctly, but I think the 40 percent pay increase is to be over the next 4 years.
You don't have be CEO to make a lot of money. Just secure a seat on the board of directors for a few big corporations.
I'm curious what portion of a new car is wages paid. I presume it takes a few hours to assemble all the components, and a few more to assemble the car. Then, there is the engineering time to build the new 16 speed automatic transmission, which is a few billion dollars, but that amortised over millions of vehicles, so...
How much of the cost of a new car is wages? If it takes 20 hours, thats $500. Bump wages 40%, and that's $700. If it tales 200 hours, it's $7000. That is worth mentioning.
Streetwiseguy said:How much of the cost of a new car is wages?
How much of the cost covers retirees and their health insurance?
My father-in-law retired from GM 34 years ago with a $20,000/year pension and full healthcare.
He only worked there for 30 years. I know GM funded these funds at one point.
I'm not going to say wether the current action was justified or not. But just remember we all work 5 days a week due to actions such as this. People died for weekends. /history nerd.
also glad I bought my truck 4 months ago.
Duke said:Mndsm said:Sounds like SWMBO isn't getting a new lexus this year is what it sounds like.
Aren't Lexi made in a merit shop in KY or TN?
I honestly don't know. What I do know is less supply in one place makes less supply in other places as the people that would suck up one part of an inventory migrate to others. People that would buy Charmin buy northern and all that. Not to mention pricing and overall parts availability still being questionable, though Lexus Orlando has the exact right truck, right now.
pheller said:Guying making 75 million loses his job tomorrow.
Retires into the sunset, never having to work a day again, living off investments, or buying some land for his future heirs.
Guy making $75k loses his job tomorrow.
Immediately starts applying for unemployment and new jobs. Risks losing home. Potential long term financial impacts.
Let'em strike.
Guy making $75k screws up, Jeep mirror does not work. Guy making $75M screws up, company goes under, everyone making $75k loses job. See how that works? If the CEO job is so easy, then get that job.
No one is assigned a job at birth, your wages depend on your skills and value to the company. The CEO did something to get that experience and raised his value, the other guy screws on a mirror.
It's like the guy with the viral song last month, he dropped out of high school at 17, and 15 years later is mad he's a loser. It's not his fault though, it's "the rich guy" and "the welfare queen" that's keeping him down according to him, not his loser choices.
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