Detroit automakers now paying same as foreign rivals, could have advantage soon
By APMonday, May 10, 2010
Detroit automakers paying same as foreign rivals
DETROIT — An automotive research center says Detroit automakers are now paying their U.S. workers about the same amount as their foreign rivals.
Sean McAlinden, an economist with the Center for Automotive Research, says Detroit automakers could even achieve a labor cost advantage over their foreign rivals in the next three to five years.
Detroit automakers spent many years paying their workers more than their foreign rivals because of pension and health care costs. But new contracts and the bankruptcies of General Motors and Chrysler have changed that.
McAlinden says if the trend continues, he forecasts Toyota will be paying its workers $10 more per hour than GM in the next few years.
McAlinden made the comments Monday at an auto industry conference at the Federal Reserve in Detroit.
