According to CNN, Ford reached an agreement with the United Auto Workers Union (UAW) that will save the company an estimated $500 million per year.
http://money.cnn.com/news/newsfeeds/articles/djf500/200903111242DOWJONESDJONLINE000809_FORTUNE5.htm
As part of this agreement, the auto workers agreed to a pay cut that will bring wages down to about $55 per hour. Based on this, an auto employee who works the standard 40 hour work week and who decides to take two weeks of vacation should expect to make $110,000 (before taxes).
Given the current state of the global economy, the auto industry, and the cost to purchase new cars, is this enough of a concession by the workers? Is it wrong for them to receive this high of an hourly wage, or is it okay because they were simply taking advantage of the situation they were presented with all these years? Is there any difference between the auto workers and the auto executives / companies in this situation? (due 3/17)
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I believe that this is a situation where everyone needs to be tightening their belts, not just the higher-up CEOs. It's important in situations like this that Ford is cutting costs so that they can actually move cars as opposed to having the overpriced gas-guzzlers they've been trying to push in the past decade. The first and easiest way to do this is by cutting wages in half if possible.
ReplyDeleteI do not think that is enough. I think that 55 dollars an hour is way to much. I think that it is wrong for them to make 55 dollars an hour. They were probably taking advantage of it all these years, but I think it is still wrong. People don't really think anything about the auto executives, but I don't think they should make a ton of money like they do.
ReplyDeleteI agree with Tim. I think that everyone should have to cut their wages. I think that like he said it will help move the cars. Everyone at Ford needs to help
ReplyDelete55 dollars an hour is way too much. They have over priced vehicles. A paycut DOWN to 55 dollars is insane! no wonder their cars are so expensive. When the economy is going through a crisis like this, no one is going to want to buy a car thats overpriced, knowing that the workers are getting 55$ an hour.
ReplyDeleteI agree with Tim. Its time every business should cut down their wages that are around 55$ an hour. This is just hurting the company. People are trying to save money at all possible and to know auto workers are getting paid that much and hour is going to make them not want to buy a car from them.
ReplyDeleteI think that it is ridiculous that they are making that much money. Their CEOs are begging Washington for money while they are making $55 an hour. It would be beneficial of them to take a pay cut, a big one, because otherwise Ford may not make it, leaving them jobless. They should not continue to take advantage of the ridiculous amount of money they make.
ReplyDeleteI agree with Tim. I think that the reason Ford cars are so overpriced is because they pay their workers so much. If they want to sell cars and keep their jobs, they should take a bigger pay cut and reduce their prices.
ReplyDeleteI do not think that this is enough. I understand they were taking advantage of this opportunity in the past. However, this luxury is no longer available. The economy is hurting. People are hurting. Cars are not being purchase. Therefore, just like everyone else, auto workers need to cut back in order to do their part to help out the United States economy.
ReplyDeleteI agree with Jessica. It is hypocritical for Ford to beg the government for money when they are not willing to truly do all that they can to help themselves out of their problems first. There is no reason they should be making $55 dollars an hour. Ford needs to seriously take a look at their morals and budget before asking the government for more money.
ReplyDeleteI agree with jessica and bri. 55 an hour is way to much. ford is paying there employee's this and asking the gov. for money is just rediculous. people need to line up the priorities for their business to succeed and not lean on other people to help when they can help themselves.
ReplyDeleteOne way to combat this is cutting the employees contracts to maybe $40-$45 an hour. this would save them millions. it also helps the doors stay open. they also need to slow down production because cars are not in need in this recession. when the recession ends, then maybe they should re-negotiate salary. Now though they need to cut something
ReplyDeleteI think that that these workers work hard but they were making way to much and they are still making more than most people do so i think that this is a step in the right way.
ReplyDeletei agree with Kirkhoff the way that these companies are spending money it would save them millions and it helps keep their doors open.
ReplyDeletei believe that they should have never been paid this much ever because if they wouldnt be paid as much their cars would be cheaper and that would give people more money to put in other places that would help the economy. it should only be the ceos that make that much and no one should be paid more because people can live on alot less then 52 dollars an hour. i belive that if these companys change their pay it would be better for the comunity
ReplyDeletei agree with Patrick if they would just cut the peoples pay it would save them milions but if it was me i would cut them more then that then that way you could help work on the economy. i think that the best way to go is to do just that thing cut their pay.
ReplyDeleteI think that with the state of the current auto industry, union workers should consent to more of a pay cut, or they won't have a job at all. Although the work they do is harder than a typical desk job, their pay rate is huge. I think that the high wage was fine when the companies were booming, but now it is unrealistic.
ReplyDeleteI agree with Chad. People can live on way less than $55 an hour, and if they really want to ensure that they have a job in the future, then they will take a pay cut.
ReplyDeleteI believe that the car dealership workers should make as much money as their budget allows. They should not have to have pay cuts because the economy is low. We would all take higher pay no matter what the economy is like. CEO should be paid slightly more then the workers.
ReplyDeletei disagree with chad. The workers should not get a pay cut because the economy is bad. They should be able to live comfortably with as much pay as they can get. Cutting their pay checks would not lower car payments. The employees should be payed however the company can.
ReplyDeleteI think that 50 dollars an hour is a little to much for an auto worker, but you can't blame them for taking advantage of their situation. If any person was in that same situation they would have done the same thing. They need to look out for their families. All thoes years of hard work are finally paying off. I don't blame them for doing what their doing, they earned what they are getting.
ReplyDeleteI agree with Vince, its not the workers fault that they might be getting over paid, its the company's fault. You can't just take money away from a person that has had it thier whole life and then not expect some resistence. They might have been paid to much from the begining but you can't go back on your deal now.
ReplyDeleteI don't think this is nearly enough concession by the workers given the current state of the global economy, auto industry, and the cost to purchase new cars. $55 an hour is an extremely large wage given to these workers while everyone else is struggling to contain any job at all. I think it's very wrong for these workers to receive so much money when it's such an excessive amount. It's more than necessary to have an average income and middle class lifestyle, and it's unfair to those who are unemployed. That money could be spent elsewhere, providing for those who have nothing, rather than being used on materialistic extras that aren't even needed at all.
ReplyDeleteI disagree with Vince. The workers should have values that instate this unreasonable amount of money given to all workers in such a tight situation is ridiculous. Just because the company is the one who sets the budget and wages doesn't mean that they can't go against it. They should most definitely have to make pay cuts because the economy is low. When we see people struggling, it's not our place to be selfish and think "Well, it's not my fault they got themselves into this mess." We're supposed to do our part and help out the people who cannot afford the basic necessities.
ReplyDeleteI think 55 dollars an hour is way too much. We are in a recession and they can't afford to keep paying them so much. They shouldn't be asking for bailout money if they are paying that much money to their own employees.
ReplyDeleteI agree with gregg, they are taking advantage of the other employees who are being layer off. The extra money they are payed could be used in other places. No one should be payed that much especially in a recession.
ReplyDeleteI think the auto-workers should take a bigger cut. Everyone has to give a little bit during these hard times. I think that if they want to keep their company in business, then they should take a lower salary. I think the workers and the executives should be facing the same cuts, they all have to give some. CEO’s cannot make a huge profit, while the workers take a cut.
ReplyDeleteI agree with Greg, I think they should be giving more than they currently are. They hourly rate they are making is ridiculous. They may have been scamming the system all along, but in these tough economic times, we can’t have people doing that. We need to think more about the executives also.
ReplyDeleteNo its not enough of a concession. The auto workers can afford to make a little less than $55 an hour. They can take it or be unemployed and they're not going to be able to find another job now making that kind of money. Executives might not have as hard of a time finding work than the auto workers will.
ReplyDeleteI agree with Brittney. They should have never been making that much money. $55 an hour is way too much. They should understand that they shouldn't be paid as much because of how bad the economy is now.
ReplyDeleteI think that the workers should give something more up. People all around them are losing their jobs and for them to make 6 figuers and think nothing of it is wrong. Everyone must make the sacrfices because everyone is hurt by this recession. We must all be able to count on each other and not look for each other to try and get ahead.
ReplyDeleteI agree with tim. Everyone complains about the CEO's making to much and getting too much benifets, which is true. But we must cut back everywhere not just up top and not just at the bottom. The more the cut down is equal the more we will be able to take responsaibilty for our actions.
ReplyDeleteI believe that 55 an hour is way too much and that some cuts need to be made. Our economy cannot afford to be doing this right now and we need to take all measures that are necessary to help improve our situacion. I do not believe that it was the workers' fault. I believe that they were simply just taking advantage of something good that was going for them.
ReplyDeleteI agree with Buckel in stating that the workers need to give up something more. The pay that they are receiving now is simply too much for them during these times. Even if those cuts are made, they will still be receiving a substantial amount of money compared to everyone else in the job field at this moment.
ReplyDeleteI do not think that this is enough. I think more cuts need to be made because of how bad our economy is right now. Many people are loosing their jobs right now and they are just taking advantage of their situation. Especially if the workers want to keep their company in business, I think they should be more willing to take a smaller paycut.
ReplyDeleteI agree with Mallory. A $55 salary is way too much for the way the society is right now. There are so many people right now that are struggling just to keep the job they have. There are also people who could be using the money that these people are getting, and spend them on more useful things.
ReplyDelete55 dollars an hour is completely insane in my opinion. If the auto industry can apparently afford these luxuries towards their employees, then why are they begging Washington for more? Obviously, a pay cut needs to take place immediately if they have hopes for their companies surviving. It is completely and utterly possible for the employees to survive on less than that large sum an hour to make ends meet, and if not it's time they learn.
ReplyDeleteI agree with Anna and Friezo with that of their pay being outrageous in this economy. How is the company suppose to grow and prosper with over payed works and them always having to run back to Washington asking for more? The employees can allow themselves to take a small pay cut inorder to ensure their jobs at the company. They need to understand they will soon enough be unemployed and out of more money if the failing company continues these unrealistic spending habits.
ReplyDeleteI think 55 dollars an hour is a fair pay cut. Even though they’re still making a good amount of money, they still took a pay cut. These people can’t be blamed for being smart about finding a well paying job. If anyone should take a hit it should be the CEO’s making millions. If the company does go into more trouble then the company should make bigger pay cuts.
ReplyDeleteI disagree with Tim. I don’t think it is the price of the vehicles that are causing the company to go down or the salary wages. People have always bought high priced vehicles and I don’t think anyone plans on buying a vehicle is this economy no matter the price right now. They are just victims of the bad economy along with all the other companies. The only thing can do now is wait until the economy gets better.
ReplyDeleteI think that 55 dollars an hour is way too much! With our economy in the state that it is in, that's way too high. There are too many people out of jobs for them to be making such a high hourly wage. Everyone is making sacrifices based on the bad economy and the workers need to too.
ReplyDeleteI agree with Anna. They should be willing to take a larger pay cut given the state of our economy. It isn't fair how that so many people are out of jobs and they are making 55 dollars an hour. They can live on wage that isn't so high. There's no reason that they shouldn't have to suffer while everyone else is.
ReplyDeleteI think it is fine that they make that much money. If I had that job I would want to make that much. If the company is going to be okay and still give wages that high, then let them do it. If it was your job you would want the same thing. I believe that the wage of $55/h is fine.
ReplyDeleteI disagree with Abby. $55/h is a decent pay cut. If the comapany is going to be fine and give people that amount of a wage, then let them. It's not like it is going to effect us. Let them do their own thing. Like I said before; If this was your job, you would want the money too.
ReplyDeleteI think the workers should take a bigger pay cut. I think they should take a bigger pay cut so that the business can free up some more money. With that money, the business should look into investing it in a way that will benifit the economy. If they don't then they should think about putting some of that money into helping people who need the money.
ReplyDeleteI agree with Kelsey because a paycut down to $55 is rediculous. If they were to get a pay cut it should be at least half of what they were already making. With overpriced employees the companies are definetly going to have overpriced cars.
ReplyDeleteThe fact of the matter is, those employees wages should've never been that high. Now, that the company is cutting the employees pay by almost half, those people are going to have an incredible change in lifestyle. This isn't fair, and wouldn't of been necessary if the company would've been providing appropriate wages in the first place.
ReplyDelete55 dollars an hour is a miracle, and it a blessing compared to what workers in our outsourced companies make. Americans need to get back to the nitty-gritty and relearn to live within their means, instead of charging everything.
ReplyDelete