Chrysler workers see a significant drop in average union pay

Article by Christian A., on July 1, 2011

The average union pay of Chrysler Group in 2010 is $49 (including wages and benefits), a significant drop from the 2006 pay average of more than $75, according to Chrysler’s Web site. With this figure, Chrysler has an advantage over General Motors and Ford. Just days ago, Ford said that its hourly workers are paid $58 an hour.

A GM spokesman told The Wall Street Journal that its workers are paid $60 an hour. Chrysler also disclosed that in the past decade, it had cut about two-thirds of its workforce.

In the year 2000, Chrysler had 75,489 hourly and salaried workers. But in 2010, this number fell to 25,549 workers. From 69,058 hourly workers in 2000, the number fell to 22,789 in 2010. During this time, Chrysler shut down 16 plants. In 2000, Chrysler had 6,431 salaried workers.

But in 2009, this number fell to 2,580 workers. 2009 was the year when Chrysler went through a government-supported bankruptcy. From 2007 to 2009, Chrysler was faced with declining sales because of the recession. This prompted the company to offer buyout packages to many of its salaried workers.

As Chrysler resumed hiring under Fiat management, its salaried staff increased slightly to 2,760 in 2010. Chrysler has a four-year contract with the UAW that expires on Sept. 14. The talks will start on July 25. These figures were posted on a new section on Chrysler’s Web site that’s devoted to the 2011 labor talks. The UAW has yet to comment on this report.

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