Detroit 3 will add 36,000 jobs by 2015, CAR economist McAlinden says

Article by Christian A., on April 12, 2011

Economist Sean McAlinden said that by 2015, about 36,000 factory jobs will be added by the Detroit 3 (GM, Ford, and Chrysler) and they would all be paid half of the wages and benefits that are typically given to traditional UAW autoworkers.

McAlinden spoke to reporters at the sidelines of his lecture at Wayne State University. He estimates that carmakers are close to hitting the production limits of its 102,000-member UAW work force on maximum overtime. He said that these companies have to hire more people to boost production as soon as all laid-off UAW members nationally have returned to work by September.

McAlinden, the executive vice president of research at the Center for Automotive Research, said that these would all be “Tier 2 hires."

Under the existing contracts that the Detroit 3 have with the UAW, they’re allowed up to 25% of their hourly workers in the lower-wage category. These provisions are effective until 2015. But then, informal talks have started between the Detroit 3 and the UAW to replace the current four-year contracts that are scheduled to expire this September.

McAlinden said that because of UAW contract concessions in 2007 and 2009, the average hourly UAW compensation with wages and benefits has been reduced to about $58 an hour. This is only $2 more an hour than what Toyota pays to workers at its Georgetown, Ky., assembly plant.

McAlinden also said that if GM is able to bring its existing 49,000 hourly work force to 20% Tier 2, the average hourly compensation will be at $48 an hour. What this means is that the carmakers get higher profits.

Topics: united states

If you liked the article, share on:

Comments

Recommended

Imagine a sports car morphing into an SUV. Chevrolet initially revealed the FNR Concept at the previous Shanghai Auto Show in 2015. For this year, Chevy once again graces the...
by - April 22, 2017
From the moment FCA kicked off with its 3-month-long ad campaign until the day it unveiled the new Dodge Challenger SRT Demon, folks have been guessing what the exact figures...
by - April 22, 2017
Some people may think Audi Sport is a new company but it is in fact the motorsport division of Audi combined with the best of what Quattro GmbH can offer....
by - April 21, 2017
It is not a big secret that premium customers in China have a strong penchant for luxury cars with a spacious interior. In particular, premium customers in China purchase luxury...
by - April 21, 2017
Chinese automaker Chery did not leave a good impression last time they were in Australia - due to its cheap design. But this year, Chery showcases its new Tiggo Sport...
by - April 21, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries