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View Diary: Do you think UAW workers make $70 an hour? UPDATED (211 comments)

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  •  Huge tax breaks (8+ / 0-)

    The foreign automotive plants in the US get huge local in they pay no local tax in some states.  While these tax breaks act as an incentive to bring work to the region, it doesn't appear to really help the surrounding area fiscally as the lost tax base isn't completely regenerated by the taxes on the employees (as the theory would go).

    Also, even though the employees at these factories are not union, they still benefit greatly from UAW collective bargaining as their wages are still informally pegged to the going UAW rate for similar line and skilled trade work (albeit a slightly discounted rate).  So now that UAW influence may be waning, I am sure the pay rate in the foreign automotive factories in the US will decrease and the benefits will weaken.

    Toyota in particular also relies heavily upon component production in other Asian countries with extremely low paid workers to balance out the cost of Japanese workers.

    As a side note, these same companies seem to thrive in Europe and Canada.  Hmm, I wonder why? Could be because the healthcare issue isn't such a financial burden?

    It is true that in the 80s GM and Ford had a huge chance to push for universal healthcare, but decided not to actively pursue that strategy.  Pretty short sighted if you ask me.

    The only thing scarier than a McCain presidency is a Palin presidency.

    by Mote Dai on Tue Nov 18, 2008 at 11:22:40 PM PST

    [ Parent ]

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