Labor costs in the US auto industry

I heard Gov. Jennifer Granholm of Michigan being interviewed on the radio this morning. She referred to an engine plant in Dundee, set up jointly by D-C, Mitsubishi and Hyundai, where labor costs are only 3%. This is a unionized (UAW) plant.

If labor costs so little, how much is to be saved by having non-unionized labor, assuming that non-unionized labor does cost less?

Perce

Reply to
Percival P. Cassidy
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"Traditional union rules have been relaxed. Any worker, union or not, can do any job."

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"At full capacity, the GEMA plants in Dundee will churn out 860,000 engines a year with a workforce of about 500 people, about a quarter the number of workers needed by some existing engine plants. Hourly wages range from $21 to $30."

"The GEMA plant draws mixed reaction from workers at the older plants in metro Detroit. Some resent that jobs go to Dundee as their own plants get smaller. But the plant shows a contrast between the new and old. The floors and machines are sparkling clean, and for an auto plant it's amazingly well lit."

"This is not your father's plant," said Daisy Red, 38, the manager of business planning for the Dundee plant and future GEMA global business. She has spent 10 years in the auto industry. The differences are more than superficial. The Dundee plant is highly automated with an educated workforce and a team approach to manufacturing."

"Dundee is a UAW plant, but the union agreed to different terms, such as a single class of employee. Traditional plants have several classifications that dictate what jobs union workers can perform. The Dundee rules give the plant more flexibility in assigning work. Anyone, including an office worker, is capable of working the line. Every employee must have a two-year degree, trade certification or five years experience in advanced computer machining."

Automation, advanced employee education requirements, and flexible work assignments (relaxed union work terms) is what makes this plant different.

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Reply to
MoPar Man

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