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Autoworkers and the Anti-Union Agenda

December 02, 2008

By now you have doubtless heard the media pundits rail against the alleged “exorbitant” wages of unionized autoworkers. Nothing like creating a straw man out of workers to push through an anti-union agenda and deny automakers financial aid that could make or break the industry. After all, one out of 10 American jobs depends on the auto industry. According to a study by the Center for Automotive Research, if all three U.S. automakers were to cease operations, the economy would lose almost 3 million direct and indirect jobs in the first year, not to mention at least $156.4 billion in taxes within the first three years. And yet, there are those who’d rather ignore the facts. Take, for example, New York Times financial columnist Andrew Ross Sorkin’s column on November 17, in which he falsely asserts that the average General Motors worker is “paid $70 an hour, including health care and pension costs.” This argument has been repeated by numerous other commentators and it could actually be a demolishing blow to the U.S. auto industry… if it was true. But it’s not. As Eric Boehlert at Media Matters points out:

Somebody at the Times needs to clarify the record, because the average United Auto Workers member is not paid $80 an hour. Or even $70. Not even close. Yet (thanks to the Times?) the issue has become a central talking point in the unfolding national debate about the future of America’s automotive industry.

But where does the bogus $70 an hour for “high-on-the-hog” autoworkers come from? Finance commentator Felix Salmon at Portfolio explains:

“The average GM assembly-line worker makes about $28 per hour in wages, and I can assure you that GM is not paying $42 an hour in health insurance and pension plan contributions. Rather, the $70 per hour figure (or $73 an hour, or whatever) is a ridiculous number obtained by adding up GM’s total labor, health, and pension costs, and then dividing by the total number of hours worked. In other words, it includes all the healthcare and retirement costs of retired workers.”

That’s right. Contrary to the claim by the anti-union media blaming autoworkers for the current industry crisis, “$70 an hour” doesn’t even resemble what its average worker makes or takes home. Bear this in mind next time you find one of these “commentators” not letting the truth get in the way of their anti-union bias.

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