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24x7Report > Blog > Finance > How does autoworker union pay compare to other hourly jobs?
Finance

How does autoworker union pay compare to other hourly jobs?

Last updated: 2023/10/14 at 12:57 PM
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How does autoworker union pay compare to other hourly jobs?
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With no slowdown in sight, hundreds of members of the United Auto Workers Union are entering their fifth week of striking towards the Detroit Three automakers.

Contents
How does autoworker pay evaluate to different hourly employees?How do autoworkers pay evaluate to their CEO’s?What’s UAW putting for?

Most lately, 8,700 employees at Ford’s largest plant walked off the job, placing the corporate prone to shedding roughly $30 million per day in revenue.

Staff on the Ford Kentucky Truck Plant build the Ford Super Duty, Ford Expedition and Lincoln Navigator. Tremendous Responsibility is among the many most worthwhile merchandise Ford sells. The autos constructed on the manufacturing unit generate $25 billion a 12 months in income, in accordance with an announcement from Ford.

Hourly union employees on the plant are calling for a good contract and higher pay, joining the 25,300 autoworkers already on the picket lines at sure Ford, GM and Stellantis services throughout the nation.

According to reporting from the Associated Press, the Detroit Three have already laid off roughly 4,800 autoworkers at factories that aren’t on strike. Hanging employees are receiving $500 per week from the union’s strike pay fund.

UAW strike Where things stand as strike hits 1 month mark and some workers grow impatient

How does autoworker pay evaluate to different hourly employees?

Based on the U.S. Bureau of Labor Statistics, a mean autoworker makes about $28 per hour. This wage elevated a few greenback from the 12 months earlier than.

In states the place the the Detroit Three automakers have factories, employees are putting for higher pay. Right here is how common hourly pay compares in different frequent occupations:

  • Throughout the childcare trade, meals preparation and serving trade and manufacturing trade, manufacturing jobs pay probably the most per hour throughout all states.

  • The typical hourly wage for manufacturing employees is the very best in California, Washington and Illinois, every of that are among the many prime 20 most costly states within the U.S., according to the Bureau of Economic Analysis’ regional price parities data.

  • The typical hourly wage for childcare employees is the bottom in Kentucky, which is amongst states the place shopper items are the most affordable within the U.S., according to BEA data. Childcare employees there earn a mean of $12.28 an hour.

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How do autoworkers pay evaluate to their CEO’s?

Autoworkers say their pay has stagnated even because the income of Detroit’s automobile firms and CEO compensation have elevated.

The three firms have near-record income, collectively reporting $21 billion in earnings in the first half of this year alone.

“The union is saying, ‘Wait a minute. You place the COLA on pause, so let’s reinstate it since you’re earning profits now and we see the CEO pay go higher and higher,” stated Artwork Wheaton, director of labor research at Cornell College in Ithaca, New York.

Prime-tier employees — that means anybody who joined the corporate in 2007 or earlier — make roughly $33 an hour on common, contract summaries for the Detroit Three present. These employed after 2007 are a part of the decrease tier and earn as much as $17 an hour based mostly on a buildup of 6% annual raises below the final contract.

Not all autoworkers on the Detroit Three come near the highest pay price. Momentary or supplemental employees make much less.

And so far as compensation to the CEOs — $29 million for GM’s Mary Barra, $21 million for Ford’s Jim Farley and $24.8 million for Stellantis in 2022, as the Free Press recently noted.

UAW strike: Here is what Detroit automakers have to give the UAW to get a deal, experts say

What’s UAW putting for?

  • Eliminating wage tiers

  • A 40% wage enhance over the lifetime of the contract. The 40% signifies the rise in CEO salaries.

  • Restoring the cost-of-living allowance changes to counteract inflation.

  • Outlined profit pension for all employees.

  • The suitable to strike over plant closures.

  • A diminished work week and extra paid day without work.

  • Limiting the usage of non permanent employees.

  • Elevated advantages to present retirees.

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Because the strike started in mid-September, UAW president Shawn Fain has expanded it twice to incorporate 38 components distribution facilities throughout the nation and GM’s Lansing Delta Meeting, together with Ford’s Chicago Meeting and Kentucky Truck.

There are about 115,000 UAW members nonetheless on the job.

Jamie L. LaReau contributed to this reporting

This text initially appeared on USA TODAY: How much do UAW workers make? A look at hourly wages across US states

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TAGGED: autoworker, compare, hourly, Jobs, pay, union

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