Sign of the New Normal: Starting UAW Wage Drop

June 19, 2010 at 11:55 am Leave a comment

The Herald included an AP story on the drop in the starting wage of UAW (United Auto Worker) jobs. Here is an insightful clip:

“For decades, the UAW tugged wages upward. In 1960, a UAW member made 16 percent more than the average American manufacturing worker. By 2006, the figure was 74 percent. Today, new hires in the UAW make about 20 percent less than the average.”

Having worked on economic development strategies in some auto-driven communities, like Kokomo, Indiana, I have seen this situation firsthand. In most cases, the new workers are just glad to have jobs. Some are resentful because they aren’t making what their predecessors did, but most are just glad to be working.

I haven’t noticed that CEO salaries and benefits have dropped comparably.

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Entry filed under: Auto Industry, UAW, United Auto Workers. Tags: , , , .

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