Auto workers do make upwards of $60 a hour, which I wouldn't have a problem with IF the unions weren't so ridiculous.
They have a "my way or the highway"mentality. Alot of people here are going to be out of jobs, and yet the CEO's flew in on their private jets to ask for money?!??
Just to be clear, they do not make $60 an hour.
It is widely stated and accepted that with the current union contract average union employee make $75 an hour including benefits. Toyota has an average compensation of $48.00 an hour which includes benefits.
The BIG 3 executives and union have renegotiated there contacts already! These contracts take effect in 2010. That's why they are asking for a
BRIDGE LOAN. After these contracts take effect in 2010. After these changes are made, average union compensation will make $58 an hour. It's not the same as foreign automakers but it is a significant change and closes the gap.
As far as the CEOs go, if you haven't lived in the Detroit area for the past 10 to 30 years, you have no idea of the jobs they have done. I wouldn't fire a one although a symbolically taking a severely reduced pay would help.
Wagoner has endured many problems at other companies due to strikes, bankruptcies and an economic collapse in the financials (GMAC was not a subprime lender). Every-time GM had a really good outlook, they had to take a one-time charge for this or that on their quarterly's.
Mullally has a great job. Ford was in horrible condition in 2006. He came in and changed everything at Ford. He said at the congressional hearing Ford may not need any governmental assistance as long as the economy doesn't get worse. BUT, Ford went out and got $19 billion in credit before all the the credit in the world dried up.
Mercedes, Cerberus and Nardelli have all learned it's hard to build autos in volume. Mercedes could build luxury cars, commercial trucks and other heavy industry items but they couldn't build cars in mass. Cerberus and Nardelli are just learning the business.
It's not the business model! Unions have taken cuts! It's not the executives! IT IS THE ECONOMY! It has not been this bad since the great depression!!!
If it was the unions, if it was the executives wouldn't Toyota, Honda and Nissan done better in October sales than the did. Toyota had sales fall 23%, Honda's fell 25% and Nissan's fell 34%.
IT'S THE ECONOMY!!!