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In the U.S., Toyota has set up non-union plants in the South – far from the unionized auto industry stronghold of the Midwest. Blunting support for unionization is Toyota’s practice of paying wages nearly on par with the U.S. auto companies (around $25 an hour in comparison with G.M.’s $26 to $28) – although with much lower benefits.
Almost a third of the assembly line workers at Toyota City are temporary employees who earn an average of $12.13 an hour. These 10,000 temps toil alongside permanent workers, who earn almost twice as much – $20.49 an hour including bonuses. The permanent workers also enjoy benefits including child subsidies, cheaper meals at the company cafeteria, and far greater job security. Temps are, well, temporary, hired month-to-month, laid off at will and not represented by a union.
Toyota’s foreign workers in Japan are second-class citizens. On arrival the guest workers’ passports are confiscated. During the first year as “trainees,” they are not covered by Japan’s labor or minimum wage laws. They work alongside Japanese workers, putting in the same long hours, but often earning less than half the minimum wage – as little as $2.76 an hour, or $479 a month. As guest workers, they are required to remain with the same employer – no matter how bad the working conditions – and to live in the company housing assigned to them – even though some are charged twice what their Japanese colleagues pay for comparable accommodations
Originally posted by jsobecky
reply to post by Jkd Up
Of course the entire industry is feeling it. No argument there.
The question is, who will remain standing? And why?
Originally posted by Icarus Rising
reply to post by jsobecky
Sen. Dodd is on CNBC live right now saying you are wrong, jsobecky. He says the auto unions had agreed to compatability and comparibility in wages and benefits as part of the deal, but the GOP still wouldn't vote for the bridge loan. Then the White House starts saying they will use TARP funds to bail out the big three. Its a dog and pony show.
Imo, the GOP is using this crisis to break the UAW, to further erode the voice and standard of living of workers in this country, and you are down with them. There is an underlying agenda at work here, and you are engaged in furthering it.
We don't know who is lying as my link said that Toyota is paying 25 (guess I was short for 5 dollars) an hour to their workers with lower benefits that the big three.
OK, there are legacy costs involved. But there are also current contracts which can be renegotiated. And federal laws do not prevent it.
For example, when I started working in hi-tech, it was common practice for companies to offer retirement packages along with other benefits. And in many cases, health care was free (for singles) or very affordable. The companies picked up the slack.
Then, the computer world started evolving from mainframes, midframes, and mini's, to PC's. The profit margins plunged. Changes had to be made.
After the first round of layoffs, companies changed their pension plans into a 401K or IRA type of vehicle. All of a sudden, the employees was responsible for guaranteeing their nest eggs. Then health costs shifted from an employer burden to more of an employee burden.
Today, a pension benefit is uncommon.
$69.00 an hour in wages and benefits is insane for assembly line workers. The Senate did the right thing.
Originally posted by Icarus Rising
reply to post by jsobecky
Sen. Dodd is on CNBC live right now saying you are wrong, jsobecky. He says the auto unions had agreed to compatability and comparibility in wages and benefits as part of the deal, but the GOP still wouldn't vote for the bridge loan. Then the White House starts saying they will use TARP funds to bail out the big three. Its a dog and pony show.
Imo, the GOP is using this crisis to break the UAW, to further erode the voice and standard of living of workers in this country, and you are down with them. There is an underlying agenda at work here, and you are engaged in furthering it.
Originally posted by inthesticks
I would also rather take a cut in pay than have no job at all.
Interesting to me is this. Toyota has a plant in San Antonio, they make the Tundra trucks. They are not union. Because the gas prices went sky high, the Tundra sales fell and the plant was closed for three months. The employees were still PAID their full salary. A couple of the production lines have reopened with a shorter work week. The workers on the lines that have not reopened yet are still being paid. Many of the Toyota employees have been interviewed on local news channels, before and since the closings, and every one of them have said they LOVE working for Toyota. That's it a great company and the employees are always treated fairly,
Seems like Toyota is doing something right, WITHOUT the unions. I think the Big 3 could take some lessons from Toyota.