What is The Average Salary of a Union Auto Worker?
Autoworkers have long had one of the largest and strongest labor unions in the United States. And despite the retrenchment in the U.S. auto industry, the United Auto Workers remains a powerful force in representing the interests of its members. Furthermore, despite having to make major concessions in the the negotiations during the recent reorganizations of Chrysler and GM, autoworkers are still among the highest-paid skilled factory workers in the U.S.
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History of the UAW
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The UAW was founded in May 1935 as part of a split within the American Federation of Labor. The UAW was an effective labor organization from its inception, organizing several successful strikes within its first few years. Walter Reuther was elected president of the UAW in 1946, and he shrewdly led the organization through its golden age of expansion until his death in 1970. Various social and economic factors have led to the decline of the UAW, which had more than 1.5 million members in 1979, to just 390,000 members in 2009.
Current Union Auto Worker Wages
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According to the Center for Automotive Research unionized autoworkers earned $28.48 hour as of 2008. Autoworkers enjoy a generous benefits package, including health insurance, paid vacation and retirement.
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Benefits
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While the Center for Automotive Research confirms that the auto companies spend $42 an hour in benefits costs for autoworkers, but the large majority of those expenses are retiree benefits, not direct benefits to current employees. The International Motor Vehicle Program estimates that as of 2010, union autoworkers get $10 hour in benefits. Keep in mind that the Big 3 have many tens of thousands of retirees that they must pay pensions and benefits to, and as they have been in business much longer than companies such as Honda, Toyota and Hyundai, they have many more retirees and therefore greater expenses. (That the pensions funds/health insurance pools were underfunded and poorly managed throughout the years also contributes significantly to the problem.)
Effect of GM and Chrysler Reorganizations on UAW Workers
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The UAW did very well in its negotiations during the reorganization of Chrysler and GM. While it is sharing in the "risk" of the newly reorgznized corporate entities, the UAW now effectively owns 55 percent of Chrysler (and holds a $4.5 billion unsecured note) through a voluntary employee benefit association (VEBA), and 17.5 percent of GM (and up to $9 billion in notes and stock) through a similar VEBA.
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