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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

VW going turbo-only in 3 to 4 years

This really was a matter of when, rather than if. Volkswagen will apparently be the first manufacturer to phase out naturally aspirated engines in favor of turbocharging its full slate. VW is kind of responsible for ushering in this push towards small-displacement, turbocharged engines that's taken the industry by storm. When it dropped its direct-injection, 2.0-liter turbo in the 2005 GTI it demonstrated that strapping an iron long to an engine can enhance the powertrain as a whole. VW made fuel economy gains, while also giving a linear, non-laggy turbo experience that it has replicated, model-after-model, to this day.
Speaking with The Detroit News, Volkswagen's executive Vice President of Group Quality, Marc Trahan, told the paper that, "We only have one normally aspirated gas engine, and when we go to the next generation vehicle that it's in, it will be replaced. So three, four years maximum."
Really, it's hard to get teary-eyed about either of these engines going away. VW has access to smaller powerplants that could easily match the performance of the 2.5 five-cylinder and the 3.6 V6, while gobbling up less fuel and providing a better driving experience. What we are sad about is that a similar statement about the extinction of NA engines came from the Vice President of Powertrain Engineering at Ford, Joe Bakaj. We'd certainly get teary-eyed over a world without Ford's excellent 5.0-liter V8.

Anti-union group files lawsuit against VW and UAW

The fight for unionization at Volkswagen's Chattanooga, TN, factory isn't letting up. Yesterday, the National Labor Relations Board decided to allow anti-United Auto Workers employees at the plant the right to defend voting down the measure. Now, a group called the National Right to Work Foundation has filed a federal lawsuit on behalf of five workers against VW and the UAW for allegedly working together to organize.
The group says in a release that it wants "to block further collusion between the company and the United Auto Workers." It alleges that VW forced workers to attend "mandatory pro-union meetings" and prevented managers from opposing. In a rebuttal on its website, the UAW called the claims "baseless" and said its actions were entirely legal.
One possible problem faces the carmaker in regards to the lawsuit. According to the Detroit Free Press, a recent US Court of Appeals ruling found that neutrality agreements like the one the business had with the UAW could be illegal if the company provided "things of value" to the union. The newspaper also claims that VW held a mandatory employee meeting concerning the election, but workers were free to leave during the UAW's presentation.