Auto Knight

GM, Ford, And Toyota Close To Wage Parity

by Darren

Auto workers for the remaining 3 American car makers will soon be paid about the same as Toyota workers in the United States do. The wage parity is a result of the re-negotiated UAW contracts that were required as part of the government bailout of the domestic auto industry.

On the basis of the deal just inked between Ford Motor Company and the United Auto Workers, Ford workers will now average about $50 per hour, when their benefits are tabulated in. Toyota workers are at $48. This is the closest the gap has ever been, and should put Ford on a more competitive cost basis with cars produced in the United States.

GM and Chrysler are looking for $21.6 billion more from the United States government. In order to get to that number, they’re required to achieve wage parity with Toyota.

“For all practical purposes, we’re at parity now,” said University of California at Berkeley labor professor Harley Shaiken. “When the market recovers, Toyota will return to profit first and profit sharing payments make Toyota’s hourly costs more expensive than Ford’s.”

Ford Motor Co has not taken any money from the government. They say they won’t need to.

GM says there hourly figure will be in the same ballpark as Ford.