Ford_News
05-09-2011, 07:30 AM
Filed under: Ford (http://www.autoblog.com/category/ford/), Earnings/Financials (http://www.autoblog.com/category/earnings-financials/)
http://www.blogcdn.com/www.autoblog.com/media/2011/05/ford-logo-jams.jpg (http://detnews.com/article/20110507/AUTO01/105070350/1148/auto01/Wage-gap-with-nonunion--foreign-rivals-is-$8-an-hour--Ford-says)
In the run up to the next round of negotiations between Ford (http://www.autoblog.com/make/ford/) and the United Auto Workers (http://www.autoblog.com/2011/03/24/uaw-creates-global-organizing-institute-to-organize-transplants/), the automaker has said it pays workers an average of $8 more per hour than its foreign and non-union rivals. By and large, foreign automakers with U.S. factories employ non-union labor, which helps keep labor costs reigned in.
According to the Blue Oval, its cost of labor has risen to $58/hour, while its competitors average $50/hour. The wage gap has persisted even after Ford negotiated concessions with the UAW that cut labor costs by $500 million in 2009.
Ford says it will be impossible to sustain a competitive business if it can't close the gap. Worse, Dearborn says the differential could eventually prevent the creation of new jobs. The company's $58/hour wage rate is a three-dollar hike over last year, thanks in large part to $5,000 profit sharing checks Ford cut each of its workers this year.
According to a company spokesperson, its wage rate would be closer to $56/hour without the profit sharing initiative.Ford wages average $8/hour higher than non-union and foreign rivals (http://www.autoblog.com/2011/05/09/ford-wages-average-8-hour-higher-than-non-union-and-foreign-riv/) originally appeared on Autoblog (http://www.autoblog.com) on Mon, 09 May 2011 09:29:00 EST. Please see our terms for use of feeds (http://www.weblogsinc.com/feed-terms/).
Permalink (http://www.autoblog.com/2011/05/09/ford-wages-average-8-hour-higher-than-non-union-and-foreign-riv/) | Email this (http://www.autoblog.com/forward/19934507/) | Comments (http://www.autoblog.com/2011/05/09/ford-wages-average-8-hour-higher-than-non-union-and-foreign-riv/#comments)
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http://www.blogcdn.com/www.autoblog.com/media/2011/05/ford-logo-jams.jpg (http://detnews.com/article/20110507/AUTO01/105070350/1148/auto01/Wage-gap-with-nonunion--foreign-rivals-is-$8-an-hour--Ford-says)
In the run up to the next round of negotiations between Ford (http://www.autoblog.com/make/ford/) and the United Auto Workers (http://www.autoblog.com/2011/03/24/uaw-creates-global-organizing-institute-to-organize-transplants/), the automaker has said it pays workers an average of $8 more per hour than its foreign and non-union rivals. By and large, foreign automakers with U.S. factories employ non-union labor, which helps keep labor costs reigned in.
According to the Blue Oval, its cost of labor has risen to $58/hour, while its competitors average $50/hour. The wage gap has persisted even after Ford negotiated concessions with the UAW that cut labor costs by $500 million in 2009.
Ford says it will be impossible to sustain a competitive business if it can't close the gap. Worse, Dearborn says the differential could eventually prevent the creation of new jobs. The company's $58/hour wage rate is a three-dollar hike over last year, thanks in large part to $5,000 profit sharing checks Ford cut each of its workers this year.
According to a company spokesperson, its wage rate would be closer to $56/hour without the profit sharing initiative.Ford wages average $8/hour higher than non-union and foreign rivals (http://www.autoblog.com/2011/05/09/ford-wages-average-8-hour-higher-than-non-union-and-foreign-riv/) originally appeared on Autoblog (http://www.autoblog.com) on Mon, 09 May 2011 09:29:00 EST. Please see our terms for use of feeds (http://www.weblogsinc.com/feed-terms/).
Permalink (http://www.autoblog.com/2011/05/09/ford-wages-average-8-hour-higher-than-non-union-and-foreign-riv/) | Email this (http://www.autoblog.com/forward/19934507/) | Comments (http://www.autoblog.com/2011/05/09/ford-wages-average-8-hour-higher-than-non-union-and-foreign-riv/#comments)
More... (http://www.autoblog.com/2011/05/09/ford-wages-average-8-hour-higher-than-non-union-and-foreign-riv/)