Auto Strike isn't going to help matters

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While I tilt pro business (vs pro union), this has to be curtailed somehow…

CNBC said:
The auto industry is just one example of how executive pay has skyrocketed faster than the typical wage growth for everyday workers.

The average CEO at a top U.S. company was paid $27.8 million in 2021, including stock awards — 399 times as much as the typical worker — according to research published by EPI. From 1978 to 2021, CEO pay grew by 1,460%, adjusted for inflation, versus just 18.1% for the typical worker.

Profits at the struck auto companies increased 92% from 2013 to 2022, totaling $250 billion, according to EPI. Striking workers say they haven’t shared in their company’s financial success.

Interesting data on wealth inequality https://www.stlouisfed.org/open-vault/2019/august/wealth-inequality-in-america-facts-figures
 
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For anyone wanting a full-size Chevy or GMC pickup, go ahead and order a 2024. For a large swath of the US, the "Truck of America" is built is Silao, Mexico.

In my past, I have seen the good sides, and some negatives, of unions.

Long ago, after getting my degrees, after a couple years, I started to work on an MBA, evening classes. One class had all sorts of cases on employment situations. It was an eye-opener for me. Not the material, the fellow students! Talk about people being born with the silver spoon! They all parroted the same attitudes. It always seemed I was the "odd one out". Finally, I asked everyone in the class to raise their hand if they had ever worked in a factory (and I defined "Factory" 'cuz I figured some were clueless). No one but me! They had no idea! It's not in their world-view!

A 10-minute break, a half-hour break for a meal, and a 10-minute break. In a 8 work-hours day (8 1/2 hours total). Times are all defined, you have no choice. You're late back at your position, you get dinged $. You aren't walking around talking with buddies about last night's football game. In most cases, it's nicer than prison. But some can be very dangerous. One wrong move, or not thinking, can result in injury, some life-long. Extra-dangerous machines can be shut down and pieces pulled out right before the OSHA inspector arrives, told that "we don't use that old machine anymore". Then back up and running after the inspector leaves.

A lot of the things we take for granted were fought for by unions, by those before us. Otherwise our work day would be 10+ hours, 6 days a week. No overtime. Holidays? Hah!

My objection to unions were in the situations that it allowed people to sluff off and work very slow, and sloppily, and/or creating their own little empires with seniority and snottyness.

A double-edged sword. Can be used for good, or bad.
 
While I tilt pro business (vs pro union), this has to be curtailed somehow…



Interesting data on wealth inequality https://www.stlouisfed.org/open-vault/2019/august/wealth-inequality-in-america-facts-figures

I don't take a position on the strike and am generally pro business as well. But I find it hard to swallow that the CEO contributes 450 times as much to the bottom line return to shareholders as the CEO. It I were a shareholder I think I would want this explained to me in detail with data to back it up!

My read on this is that it is about strategy. Ford laid off today because of the strike in Michigan. That likely costs taxpayers in unemployment although Ford is probably self-insured.
 
I hope this doesn't affect my plans (availability or cost) to buy a new TRX (RAM Truck) later this year or early next. :( It's always seems to be something these days.

If you want any selection you might move now.
 
I think stuff like this is probably one reason as to why my 2000 Intrepid, 2003 Regal, and now my 2023 Charger, were all made in Canada, eh? Although, I've heard the CAW can be just as bad as the UAW sometimes.

My 2012 Dodge Ram was Hecho en Mehico.
 
Have to remember the collective bargaining process starts out with some pretty outlandish demands by both sides and when an agreement if finally reached, it will be a pattern settlement across all UAW plants. During my career I've had the pleasure of sitting on both sides of the negotiating table. I don't see the 32 hour or four day work week coming to pass for a number of reasons, mainly cost.
 
I believe the outfit I ordered is assembled in Mexico. The problem is the factory's that where people are walking out at, make some of the components to complete that vehicle.

So, the walk out cripples the production because each factory depends on each other to build a complete product. That is my understanding of the car building world. I could be wrong though.
 
Street - I hope the strike doesn't affect the build on your truck. But it seems to me that any truck recently ordered should have its parts made in advance ready for assembly. And since yours will be made in Mexico, maybe the strike won't affect you. I don't know for sure - I'm just guessing.

My Jeep's radio/nav system/ back up camera screen recently died. Took it in for service and they had to order a new system. Dealer is supposed to get the parts within 2 weeks. Hopefully it is something that isn't affected by a strike.
 
A few things I didn't see mentioned:

Pundits forecast a resolution of an increase in the 25% to 30% range.

The demand list includes a lot more than wage and workweek. The big one being the EV manufacturing. That numerous list needs to be bargained.

My points:
Buyers thinking they are "safe" because it is UAW cars (about 15% of production) should think again. If this lasts long enough to cause a shortage in American brands, the current overall shortage will get worse and prices will rise for other brands. This is because cars get totaled, people need a new vehicle, and they will switch brands is necessary. That Chevy fan may try a Toyota if they have no choice.

The other thing I heard from some of the strikers reminds me of "wage-price spiral" talk. "We need a big raise to cover the last years' inflation, and for the inflation in the next few years."
 
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Street - I hope the strike doesn't affect the build on your truck. But it seems to me that any truck recently ordered should have its parts made in advance ready for assembly. And since yours will be made in Mexico, maybe the strike won't affect you. I don't know for sure - I'm just guessing.

My Jeep's radio/nav system/ back up camera screen recently died. Took it in for service and they had to order a new system. Dealer is supposed to get the parts within 2 weeks. Hopefully it is something that isn't affected by a strike.

I hope so too but I also understand if not.

Hope the Jeep gets back up and in full function.
 
I believe the outfit I ordered is assembled in Mexico. The problem is the factory's that where people are walking out at, make some of the components to complete that vehicle.

So, the walk out cripples the production because each factory depends on each other to build a complete product. That is my understanding of the car building world. I could be wrong though.
From what I’ve read that’s deliberate by the UAW to make their strike fund last. They can shut down plants strategically and cripple others, so they only have to subsidize wages using their strike fund at striking plants leaving the big three on the hook for wages at collaterally crippled plants. Clever approach but…

Of course I’d expect the big three to do layoffs at the crippled plants - and evidently Ford has already started layoffs and GM is saying they’ll do likewise.

This is ugly, but union negotiations almost always start out “far apart,” and meet somewhere in between - the only question is how long that takes. While automakers profits have been robust, the outlook looks more uncertain (EVs & recession?).
 
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Wages are funny. We just paid some apartment cleaners, two young moms of toddlers just filling their idle hours (hah). Worked out to $50/hour each.


If they are doing it right, they are not making that. I looked into doing more fun work (non-skilled/licensed handiman stuff) as I see people looking all the time on Nextdoor etc and it would be fun and allow me to meet neighbors. Anyway, once I got insurance quotes I would have to work way too much to make it worth my while. To do part time at the level I would take jobs insurance would be 50% of gross revenues. I have too much to lose to work uninsured and I'm not looking for a "real job" so no dice. It would have been nice to just spontaneously pick jobs when I have free time and a desire. Housecleaning/home watching was even more expensive insurance due to high theft claims from those businesses. Then there is SE taxes.
 
From what I’ve read that’s deliberate by the UAW to make their strike fund last. They can shut down plants strategically and cripple others, so they only have to subsidize wages using their strike fund at striking plants leaving the big three on the hook for wages at collaterally crippled plants. Clever approach but…

Of course I’d expect the big three to do layoffs at the crippled plants - and evidently Ford has already started layoffs and GM is saying they’ll do likewise.

This is ugly, but union negotiations almost always start out “far apart,” and meet somewhere in between - the only question is how long that takes. While automakers profits have been robust, the outlook looks more uncertain (EVs & recession?).

Yes, the strike process has been well planned beforehand I'm sure of that.

Like you said, the length of the walkout will be a key factor in how damaging the effects will have on us in more ways than, the time it takes to get a vehicle.
 
Think about this... a 40% pay increase combined with a 4 day work week with 5 days of pay means a 75% pay increase..


Must be nice if you can get it...
The 40% was over 4 years I think but the ask really does seem outrageous.
 
Interesting!! To me that is what I think they would be after. OT after 32-hour equals $$$$$$.

It’s more than that. If they make $20/hr, that’s $800 for 40hrs. They want $800 for 32hrs. That’s a new hourly rate of $25/hr. Not sure how OT would be established - over 32 or over 40?
 
This only impacts the old USA "big 3" but all the USA auto employees of the foreign car companies (primarily in the south) Mercedes, BMW, Honda, Acura, Kia, Toyota, etc, etc. are not (thank goodness) represented by the UAW...and each time, those employees vote no to the UAW.

You've got to wonder how long they (the big 3 and the UAW) can keep going......No impact to us...we love our Acura's and Honda's.

Also, a quote today from President Biden regarding the strike:

"Workers deserve a fair share of the benefits they helped create for an enterprise,"

I'm curious as to what he thinks the "fair share" should be? Seems like the UAW defines it as a 40% raise and a 32 hour work week. Good luck with that.....hope that is "fair".

Selective amnesia from the Great Recession "bankruptcy" when the auto workers got equity and bondholders (and the rule of law) were steamrolled.

I'm not sure the government's posture here seems balanced between the two parties given the one sided rhetoric.
 
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I don't take a position on the strike and am generally pro business as well. But I find it hard to swallow that the CEO contributes 450 times as much to the bottom line return to shareholders as the CEO. It I were a shareholder I think I would want this explained to me in detail with data to back it up!



My read on this is that it is about strategy. Ford laid off today because of the strike in Michigan. That likely costs taxpayers in unemployment although Ford is probably self-insured.
I think the bashing of CEO pay (and trying to tie autoworker raises to CEO pay l) misses the point: You have to pay to attract unique talent. The person who can operate at that level is rare. I am not saying all are effective of course.

Others in our economy with rare skills are very highly paid. Examples are entertainers, pro athletes, etc. There is no particular logic for trying to tie average worker pay to what those folks make since the market for their skills is just plain different.
 
Even if we aren't in the market for a new ride, this is a bad thing for our pocketbook in many areas in the financial cycle.
 
If you want any selection you might move now.
I'll wait, they want far too much over window sticker. Anything over window sticker is really too much IMO.
 
Selective amnesia from the Great Recession "bankruptcy" when the auto workers got equity and bondholders (and the rule of law) were steamrolled.

I'm not sure the government's posture here seems balanced between the two parties given the one sided rhetoric.

Yep. We will not go near a GM showroom after the loss we took on our GM bonds. Rules were changed and we got screwed.
 
Thanks for a brief discussion. A reminder the rules discouraging politics have not changed,


 
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