Friday, November 21, 2008

GM Hourly Wages

(In response to Ezra Klein’s post – “How Much Do UAW Members Make?”)

The reason $70 per hour number is useful is it highlights how the retiree service bill is burdening the current workers.

The core of the whole GM issue is this – Americans are not stupid enough to know that current workers obviously get wages similar to Toyota and Honda operating in USA. It is all about how much ‘tax payer’s money should be used for GM retirees.

We are using taxes of folks who can not afford health care to server ‘health needs’ of retired GM workers. The current GM worker ‘earns’ her health benefits as per prevailing industry standards and there are no issues with that. But why would Americans, who can not afford their own retirement, should foot the bill of some one else’s retirement?

It is totally wrong that tax payers money is used to ‘beef up selectively’ some retirees. Rather, that money is to be used to shore up nation’s standard pension insurance and Medicare / Medicade. All these GM retirees can very well take advantage of Social Security and Medicare / Mdeicate. Why demand money from other tax payers?

The real failure here is not differentiating between UAW retiree burden and current UAW workers. Most of the Americans will not have any problem in bailing out those who work currently because their income and benefits are generally at par.

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