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

A couple of days ago, Ford came out with their pursuit-rated F-150 Police Responder, and we were quite impressed with what it has to offer. And we are pretty sure...
by - July 26, 2017
Aside from fronting Honda’s annual summer tour, pop rock band OneRepublic was also given an opportunity to customize a 2017 Honda Civic Type R. The car is a one-off and...
by - July 26, 2017
Everyone seems to know that the Alfa Romeo Giulia has been recently experiencing problems. Turns out, the blame goes to Giulia’s software. Reid Bigland, big time executive from Alfa Romeo...
by - July 26, 2017
Romanian automotive media publication cars.ro earlier said that the new Ford Fiesta will no longer be offered in the United States. Robert Stiller, Ford’s vehicle program manager for the B-segment,...
by - July 26, 2017
The Nurburgring is the one track that many automakers want to hold a record of, because only the best of the best do. This time, a group of extraordinary passionate...
by - July 25, 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