Big Three May Start Hiring Again Soon

Serious Business Backup 23 replies 644 views
ZWICK 4 PREZ's avatar
ZWICK 4 PREZ
Posts: 7,733
Jan 13, 2010 6:41am
http://online.wsj.com/article/SB10001424052748704081704574652830152961434.html
WSJ Online / Copyright 2009 Dow Jones & Company, Inc. All Rights Reserved / By Sharon Terlep


In a surprising show of optimism at the Detroit auto show, each of the three Detroit-based car makers said Monday it may soon begin hiring U.S. factory workers.

General Motors Co., Ford Motor Co. and Chrysler Group LLC are considering hiring plans in expectation that U.S. vehicle demand will begin to recover from last year's anemic levels.

Such moves would help reverse a dramatic decline in U.S. auto manufacturing jobs that accelerated last year as vehicle sales sank to a 47-year low. The hiring plans, however, wouldn't make a dent in the job loss of last year, when the industry cut 126,000 U.S. factory positions.

GM North American chief Mark Reuss told reporters Monday the company hopes to bring in new workers at a reduced wage and may even reopen a Tennessee factory closed last year as part of the company's government-backed revamping.

Ford said a $450 million investment to build its next-generation hybrid models and its first plug-in electric cars in Michigan should yield 1,000 jobs in the beleaguered state.

Meantime, Chrysler Chief Executive Sergio Marchionne said his company will begin hiring workers this year if demand recovers as expected. "We do need to re-establish a base of talent that I think has been lost as a result of restructuring," he said.

The companies also must deal with workers who have been laid off but are still receiving some of their pay under union agreements. GM has about 6,700 laid-off workers; Ford and Chrysler haven't released their figures.

Meantime, Toyota Motor Co. said it is looking to increase production in anticipation the U.S. market will grow at least 10% from last year's 10.4 million sales level. The Japanese company, which produced about 63% of its products in North America last year, is considering raising local production but has yet to make any firm determinations, it said.

Even the industry's smaller players may have to stretch to meet improving demand. A senior Subaru executive said Monday a factory in Lafayette, Ind., that builds the Subaru Outback, Legacy, and Tribeca is at maximum output. "We're using all the capacity we have," said Timothy Colbeck, sales chief for Subaru of America Inc., a unit of Fuji Heavy Industries.
ernest_t_bass's avatar
ernest_t_bass
Posts: 24,984
Jan 13, 2010 8:11am
Honda's doing well :)
ytownfootball's avatar
ytownfootball
Posts: 6,978
Jan 13, 2010 8:20am
What's the minimum wage again?
ZWICK 4 PREZ's avatar
ZWICK 4 PREZ
Posts: 7,733
Jan 13, 2010 8:26am
ytownfootball wrote: What's the minimum wage again?
I don't know but you can add 10 to it and it'll be the starting hourly wage.
ernest_t_bass's avatar
ernest_t_bass
Posts: 24,984
Jan 13, 2010 8:27am
I'd say to pay them the minimum wage. More people in our country SHOULD be paid the minimum wage. Then, maybe, we wouldn't have as high of a standard of living, we could afford more, and inflation would have never been this rampant. Just a thought, I could be wrong.
ZWICK 4 PREZ's avatar
ZWICK 4 PREZ
Posts: 7,733
Jan 13, 2010 8:31am
Yes. I see no negative affects on the economy if we start paying everyone minimum wage.
ytownfootball's avatar
ytownfootball
Posts: 6,978
Jan 13, 2010 8:33am
ZWICK 4 PREZ wrote: Yes. I see no negative affects on the economy if we start paying everyone minimum wage.
You going to be the first to sign up for that minimum wage thing?
ernest_t_bass's avatar
ernest_t_bass
Posts: 24,984
Jan 13, 2010 8:41am
ZWICK 4 PREZ wrote: Yes. I see no negative affects on the economy if we start paying everyone minimum wage.
I sense your sarcasm. We're WAY past the point where we could do this. I'll get murdered for this, but I don't see why a factory worker should make what they do. I see factory work as a perfect job to be making (at least start out at) minimum wage.

Can't do minimum wage now b/c prices are so high.
ZWICK 4 PREZ's avatar
ZWICK 4 PREZ
Posts: 7,733
Jan 13, 2010 8:41am
ytownfootball wrote:

You going to be the first to sign up for that minimum wage thing?
my sarcasm font isn't working?
ytownfootball's avatar
ytownfootball
Posts: 6,978
Jan 13, 2010 8:47am
Haha, yeah I thought so.

Ernest, as a college educated person who has been there and done that, I'll only say there's a lot more that goes with that wage that took ten years to reach and 5 before you even got a raise...a lot more.
ZWICK 4 PREZ's avatar
ZWICK 4 PREZ
Posts: 7,733
Jan 13, 2010 8:51am
ernest_t_bass wrote:
I sense your sarcasm. We're WAY past the point where we could do this. I'll get murdered for this, but I don't see why a factory worker should make what they do. I see factory work as a perfect job to be making (at least start out at) minimum wage.

Can't do minimum wage now b/c prices are so high.
Exactly, so there's no point in even worrying about it b/c it's not possible.

I do agree you in a sense that pay should be a fair market value. No one without a skill should be paid any higher than minimim wage b/c u can get anyone to do the job.
Someone sweeping a floor shouldnt make the same as someone welding. And no one should make as much as an Electrical Engineer.
ernest_t_bass's avatar
ernest_t_bass
Posts: 24,984
Jan 13, 2010 8:54am
ytownfootball wrote: Haha, yeah I thought so.

Ernest, as a college educated person who has been there and done that, I'll only say there's a lot more that goes with that wage that took ten years to reach and 5 before you even got a raise...a lot more.
I didn't follow your last sentence.
ytownfootball's avatar
ytownfootball
Posts: 6,978
Jan 13, 2010 8:56am
ZWICK 4 PREZ wrote: I do agree you in a sense that pay should be a fair market value. No one without a skill should be paid any higher than minimim wage b/c u can get anyone to do the job.
Someone sweeping a floor shouldnt make the same as someone welding. And no one should make as much as an Electrical Engineer.
And that's why you have Big 3 fail. Unions won't diferentiate and corporate allowed it to happen, it all equalled fail.

I'm done
ytownfootball's avatar
ytownfootball
Posts: 6,978
Jan 13, 2010 8:59am
ernest_t_bass wrote:
ytownfootball wrote: Haha, yeah I thought so.

Ernest, as a college educated person who has been there and done that, I'll only say there's a lot more that goes with that wage that took ten years to reach and 5 before you even got a raise...a lot more.
I didn't follow your last sentence.
Tier hiring system, took 5 years at 3-1 attrition to get a raise, and 10 years to reach parity, 3 years to close up shop.
ernest_t_bass's avatar
ernest_t_bass
Posts: 24,984
Jan 13, 2010 9:10am
YTown... I'm not a factory worker, so could you put that in terms for the lay-person? (Yes, go ahead and call me an idiot. I'm fine with that)

:)
ytownfootball's avatar
ytownfootball
Posts: 6,978
Jan 13, 2010 9:19am
Three tiers

1st tier = new hire- lowest wage and reduced benefits

2nd tier- you moved into this tier once three workers in tier three died, quit or retired. Your pay increase was based on time served.

ex. Ernest is 10th on the list, Ernest waits for 30 people to die, quit or retire, then he gets a raise based on his seniority

3rd tier- parity=top earning wage and benefits- this was reached in 10 years of service
j_crazy's avatar
j_crazy
Posts: 8,372
Jan 13, 2010 9:21am
they need to dissolve the UAW before any hiring makes sense.
ernest_t_bass's avatar
ernest_t_bass
Posts: 24,984
Jan 13, 2010 9:30am
UAW is now a Govt. organization, so I don't see it ever going away :)
ytownfootball's avatar
ytownfootball
Posts: 6,978
Jan 13, 2010 9:34am
Unions do harbor much of the blame, however I liken the big picture to a spoiled kid that got everything he demanded from his parents. Who's more at fault for the POS kid, the kid that demanded shit or the POS parent that couldn't say "NO"?
ernest_t_bass's avatar
ernest_t_bass
Posts: 24,984
Jan 13, 2010 9:41am
ytownfootball wrote: Unions do harbor much of the blame, however I liken the big picture to a spoiled kid that got everything he demanded from his parents. Who's more at fault for the POS kid, the kid that demanded shit or the POS parent that couldn't say "NO"?
Umm... Yes!?
C
Con_Alma
Posts: 12,198
Jan 13, 2010 10:03am
ernest_t_bass wrote: ... and inflation would have never been this rampant. Just a thought, I could be wrong.
Inflation has not been "rampant" for a long, long time.
Q
queencitybuckeye
Posts: 7,117
Jan 13, 2010 10:07am
Con_Alma wrote:
ernest_t_bass wrote: ... and inflation would have never been this rampant. Just a thought, I could be wrong.
Inflation has not been "rampant" for a long, long time.
If only this statement would remain true in the near future. :)
C
Con_Alma
Posts: 12,198
Jan 13, 2010 10:16am
I think we are in for some nasty increases....gotta pay the piper for all this fake money out there.
ernest_t_bass's avatar
ernest_t_bass
Posts: 24,984
Jan 13, 2010 10:23am
Con_Alma wrote: I think we are in for some nasty increases....gotta pay the piper for all this fake money out there.
I agree with this 100%