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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

GM recalls Chevy Express, GMC Savana over rollaway concern

The National Highway Traffic Safety Administration has issued a recall notice for a small number of General Motors fullsize vans due to possible rollaway concerns. On certain 2013 Chevrolet Express and 2013 GMC Savana models, it is possible to remove the key from the ignition without the shifter being in park.
Only 980 total units are being affected by this recall, and GM is fixing the issue by replacing the ignition cylinder and associated keys. Affected Chevy vans were built during most of November and December while its GMC counterpart was only built for a week in November. The recall goes into effect on January 23, and to find out if your vehicle applies to the recall, the GM and NHTSA contact numbers can be found on the official recall notice, which is posted below.

Hot air balloons caught in high winds drag fullsize SUV

A sudden storm front whipped up enough wind to send some hot air balloons flying into the air in Wisconsin over the weekend. One ballon proved so energetic that it was able to drag a fullsize SUV across a field and into a stand of tents. The freak accident occurred at Balloonfest in Waterford, Wisconsin. Spectators were horrified as balloons dragged handlers to the ground and launched with terrified pilots clinging to their baskets. Organizers had started packing up the colorful balloons due to ominous storm clouds when the wind kicked up. "Happened just like that; it was crazy," Nathan Fricke, crew member, told Fox 6. Winds were clocked at 40 to 50 miles per hour. A balloon caught in the wind dragged a large SUV (we think a Suburban or Yukon XL) hundreds of feet and into a cluster of tents on the edge of the staging area where balloons were on display for festival goers. Considering that the SUV surely weighs well over 5,000 pounds, it's lucky that no one was injured in the incident. News Source: Fox6Now Weird Car News Chevrolet GM GMC SUV