top of page
Search

Work fewer days and get a 46% pay increase?

  • jpet9999
  • Sep 10, 2023
  • 1 min read

ree

Anything that impacts automobile prices impacts us all. The news reported that the United Auto Workers may go on strike. They are asking for a 46% pay raise and to work fewer (20%) hours. Per the internet, the average pay for a UAW member is currently $18.54 an hour. In some states you can make that much money flipping burgers. The pay increase equates to an effective raise to $27.06 per hour. But if the worker only works 32 hours a week, they only get a $125 a week raise before taxes. Can a company afford to increase pay 46% and have workers work 20% less? Working 20% less reduces production 20%. As they are publicly traded on the stock market, raising operating costs (employee pay, workdays) will result in lower stock prices and lower dividends to stock owners. The companies will need to raise the prices of already highly priced automobiles to make up for the increased operating costs. This should result in fewer automobiles sold. Meanwhile the foreign automakers will be able to keep prices constant, i.e., sell more cars. With inflation and gas prices being what they are, it's going to get harder for Americans.

As president, I would suggest that the pay for the lower income workers be raised, while to pay of the already amply paid workers receive cost of living increases only. The 20% reduction in work week hours doesn't really help the workers and can cripple the company.



 
 
 

Recent Posts

See All

Comments


John Capko for President

©2022 by John Capko for President. Proudly created with Wix.com

bottom of page