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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

Submit your questions for Autoblog Podcast #317 LIVE!

We record Autoblog Podcast #317 tonight, and you can drop us your questions and comments regarding the rest of the week's news via our Q&A module below. Subscribe to the Autoblog Podcast in iTunes if you haven't already done so, and if you want to take it all in live, tune in to our UStream (audio only) channel at 10:00 PM Eastern tonight.
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British Honda CR-V looks tough, gets diesel and 9-speed auto

Honda just took the wraps off of its thoroughly updated 2015 CR-V for the US, with a touch more style and improved powertrain to provide more torque and better fuel economy. In our First Drive, we found that all of the changes really focused the CUV even more towards the desires of its audience of mostly families. European crossover shoppers don't have to wait too long to see these tweaks for themselves and get a few exclusive upgrades of their own.
While US models get a torquier gasoline engine, Europe loves its diesels. Therefore, the CR-V over there benefits from a more powerful 1.6-liter i-DTEC oil-burner that produces 158 horsepower and 258 pound-feet of torque. This new addition is only available on the four-wheel drive version, and it replaces the previous 2.2-liter diesel in the lineup. Also as opposed to the CVT here, there's now an optional nine-speed automatic gearbox across the pond.
According to Honda, the new diesel with a six-speed manual drops emissions by 11 percent compared to its predecessor. Opting for the nine-speed auto makes things 20 percent cleaner in contrast to the previous 2.2-liter CR-V with an auto.