Quote:
Originally Posted by kinyu
I listen to financial people on news radio pretty frequently, and the general consensus with them seems to be that this money is just a bandaid, and that it doesn't fix the overall/biggest problem GM has, which is the high salary they pay the employees. A company that pays its employees an average of $73 an hour can't compete with companies like Nissan and Toyota who average around $42 an hour. While I know the "financial professionals" are not always correct, this does seem like a valid argument.
http://www.heritage.org/Research/economy/wm2162.cfm |
I had read a statement from GM a week or two ago which stated that the average hourly wages for their employees is pretty much in line with Totota workers at some of their senior factories in the US. Both were $29 and change per hour. The difference comes when you consider GM has significantly more employees on pention, and their benifits package is better. With that factored in the difference is $42 per hour for Toyota, and $62 per hour for GM. To me it is pretty clear how you fix that. You stop the pension plan and buy out the senior employees as you can. In fact 80zedder stated in another thread that some of the GM layoffs you read about in the news is GM doing just that. :flag2::flag2::flag2: