Do you think people in control at companies would not rather pay 1.50 an hour as opposed to 14.00 an hour?
They are paying far more than $14.00 an hour. The unions make it difficult for US companies to compete with non-US companies. The average hourly wage (with benefits) is $78.21 (see below). This is for a job that requires no education. That is outrageous. I agree with Lynn, we need to make it easier for companies to do business in the US.
The current veteran UAW member at GM today has an average base wage of $28.12 an hour, but the cost of benefits, including pension and future retiree health care costs, nearly triples the cost to GM to $78.21, according to the Center for Automotive Research.
The media is making a big deal about the ripple effects that will occur if the auto industry fails, however, the media has much to lose as well since the auto companies spend massive amounts on advertising. The media has lost it's credibility and this is just another demonstration of their bias reporting.
I agree with whoisjohngalt, we need to give capitalism a chance. They have the opportunity to succeed but with that opportunity comes the risk of failure. The government needs to get out of the way and let them figure out how to keep their companies afloat.
Besides, the government lied to us about how they would handle the initial bailout. What reason to we have to believe they will be honest with this one?