A telling factoid from the news today:
Tony Faria, an auto industry specialist at the University of Windsor, said that once new contracts negotiated by both the CAW in Canada and the United Auto Workers in the United States come into effect, Canadian employees of the Big Three will cost their employers about $27 an hour more than their American counterparts.
(http://www.canadaeast.com/business/article/496927)
Assuming the factoid is true -- and it may not be; there is a lot of figures thrown around that are more smoke and mirrors than real (what about health costs? are they factored in?) -- then Canadian employees of the Big Three are doomed. Who would pay $27/hr more for the same work? Especially when the economy is so poor?
2 comments:
With the new coalition government, the big three unions will have unlimited money to throw around; unfortunately it will go towards job protection and not retooling or improving of the line. We are missing an opportunity to restructure and improve our industry. With the coalition throwing around billions, it won't get done and we will be left behind.
Granted, I'm not sure what average wages are in the auto industry, but I'm really having trouble swallowing that number. Unless the UAW agreed to Third World wages.
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