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Foreign automakers pay from $38 to $65 per hour to non-union workers

As leaders for the United Auto Workers gather in Detroit for their Special Convention on Collective Bargaining to work out the negotiating stance for this year's new labor agreements with the Detroit 3 automakers, what they most want to do is figure out how to eliminate the two-tier wage scale. However, the lower Tier 2 wage has allowed the domestic automakers to reduce their labor costs, hire more workers, and compete better with their import competition. As it stands, per-hour labor rates including benefits are $58 at General Motors, $57 at Ford, and $48 at Fiat-Chrysler – a reflection of FCA's much greater number of Tier 2 workers. The Center for Automotive Research released a study of labor rates (including benefits) that put numbers to what the imports pay: Mercedes-Benz pays the most, at an average of $65 per hour, Volkswagen pays the least, at $38 per hour, and BMW is just a hair above that at $39 per hour. Among the Detroit competitors, Honda workers earn an average of $49 per hour, at Toyota it's $48 per hour, Nissan is $42 per hour, and Hyundai-Kia pays $41 per hour. The lower import wages are aided by their greater use of temporary workers compared to the domestics. Automotive News says the ten-dollar gap between those foreign camakers and the domestics turns out to about an extra $250 per car in labor, which adds up quickly when you're pumping out many millions of cars. That $250-per-car number is one that, come negotiating time, the Detroit 3 will want to reduce, as the UAW is trying to raise both Tier 1 and Tier 2 wages. Another wrinkle is that the domestic carmakers are considering the wide adoption of a third wage level lower than Tier 2. Some workers who do minor tasks like assembling parts trays kits and battery packs already make less than Tier 2, but the UAW will be quite wary about cementing yet another wage scale at the bottom of the system while it's trying to fight a bigger battle at the top. News Source: Automotive News - sub. req., BloombergImage Credit: AP Photo/Erik Schelzig Earnings/Financials UAW/Unions BMW Chevrolet Fiat Ford GM Honda Hyundai Kia Mercedes-Benz Nissan Toyota Volkswagen labor wages collective bargaining labor costs

Race Recap: 2015 US Grand Prix was wet, wild, and historic

Hurricane Patricia made landfall in Mexico this weekend, and made her presence known throughout the South. For two of the three days of the grand prix weekend it rained non-stop in Austin, so badly on Saturday that qualifying had to be postponed until Sunday morning, and then it only stayed dry enough to conduct the first two sessions. At the end of a tricky, slippery Q2 Nico Rosberg had put his Mercedes-AMG Petronas on the front row, one tenth ahead of teammate Lewis Hamilton. The German had done the best he could to keep his hair-thin chances of a World Championship fight alive. Daniel Ricciardo lined his Infiniti Red Bull Racing chassis in third ahead of teammate Daniil Kvyat, both drivers having moved up a place because Ferrari driver Sebastian Vettel took a ten-spot grid penalty for using a fifth engine and dropped to 13th. Continuing the two-up theme, Sergio Perez and Nico Hulkenberg were fifth and sixth for Force India. After that came variety: Felipe Massa in seventh for Williams, Max Verstappen for Toro Rosso in eighth, Fernando Alonso looking good in the rain for McLaren in ninth, and Romain Grosjean for Lotus in tenth. When the lights went out, Turn 1 set the tone. Pole position is on the outside line at Circuit of the Americas, and Hamilton had got himself far enough under Rosberg by the time the two got up the hill that Rosberg had to stick to the outside through the corner. At the corner exit Hamilton used the entire track, pushing Rosberg wide, their cars touching. As Rosberg left the track and dropped back to fourth, Hamilton radioed to the team to say the contact was unintentional. The two Mercedes' and two Red Bulls animated the front. Rosberg passed Ricciardo at the end of a Virtual Safety Car period employed to let the marshals clean the debris at Turn 1. Kvyat started chasing down Hamilton until the Russian ran wide and let Rosberg and Ricciardo through, then Rosberg ran wide on the next lap to let Ricciardo through. On Lap 15, Ricciardo passed Hamilton through the esses to take the lead. After the first round of pit stops the Aussie still had the lead, followed by Rosberg, Kvyat, Hamilton, and Vettel. Then Rosberg got around to take the lead and Vettel closed in on Hamilton as the Brit duked it out with the Russian. Rosberg showed excellent speed, building up a nine-second gap on Ricciardo, but a Safety Car period erased that when Marcus Ericsson had to park his dead Sauber on the inside of the track after Turn 10.

Germany says nein to EU ban on new fossil-fuel cars from 2035

BERLIN (Reuters) - Germany's government will not agree to European Union plans to effectively ban the sale of new cars with combustion engines from 2035, Finance Minister Christian Lindner said on Tuesday. In its bid to cut planet-warming emissions by 55% by 2030 from 1990 levels, the European Commission has proposed a 100% reduction in CO2 emissions from new cars by 2035. That means it would be impossible to sell combustion engine cars from then. European Parliament lawmakers backed the proposals this month, before negotiations with EU countries on the final law take place. Speaking at an event hosted by Germany's BDI industry association, Lindner said there would continue to be niches for combustion engines so a ban was wrong and said the government would not agree to this European legislation. Lindner, a member of the pro-business Free Democrats, which shares power with the Social Democrats and Greens, said Germany would still be a leading market for electric vehicles. (Reporting by Christian Kraemer; Writing by Madeline Chambers; Editing by Miranda Murray and Edmund Blair) Green Government/Legal Green Audi BMW Mercedes-Benz Volkswagen Opel SEAT Skoda