Replying to a message of Bob Klahn to Bob Ackley:

 BK>>>  After all, since the american auto makers don't pay that much
 BK>>>  less than Toyota, The idea that the American auto workers are
 BK>>>  the problem is nonsense.

 BA>> Forty bucks an hour plus benefits for what is basically
 BA>> unskilled labor is not nonsense.  Receiving full or nearly

 BK>  Yes, it is, since that is not what unskilled workers get.

It certainly is.  Auto workers are basically unskilled labor and they
make more than the mechanics that have to fix their mistakes.

 BK> Oh,
 BK>  while we are at it, why would any salary for unskilled work, no
 BK>  matter how high, be objectionable. Remember, the law of supply
 BK>  and demand does *NOT* have anything in it to say how skilled the 
 BK> labor is, only on what it takes to hire people to do it. Would  you
 BK> want to do factory work for $10 or $15/hr?

Depends.

 BK>  Since Toyota's *average* hourly pay is within a few dollars of
 BK>  the American automakers, it must not be too high. It most
 BK>  certainly is not $40/hr. Not even for skilled workers.

 BK>  I just looked it up. Current top pay is $32.83/hr. That's top
 BK>  skilled labor.

UAW ain't skilled labor.

 BK>  Bottom level pay is about $14/hr. I haven't found a breakdown of  all
 BK> the levels.

 BK>  Total labor cost is about $55/hr for GM, $49/hr for Toyota and
 BK>  Honda. From what I have read GMs cost will drop over the term of  the
 BK> contract. Adjusted for inflation.

That includes the benefits paid to retired workers and the families of retired
workers?  I don't think so.  Health care benefits alone for GM amounted to over
$1,300 of the price of every vehicle GM made - and that was several years ago,
it's probably more than that now.

 BA>> full pay for not working isn't nonsense either.

 BK>  Does that make it a good thing they do not get full pay for not
 BK>  working? Should Toyota drop their no layoff policy?

Kawasaki has a no layoff policy, too.  Or at least they did.  During a plant
shutdown at their Lincoln NE plant they had some of their otherwise idle work
force assisting the city.

 BK>  Believe it, GM is not going to give full pay for not working. If 
 BK> they had to pay out the full pay they would have the people  working.

 BA>> Auto workers in general, IMO, are grossly overpaid.

 BK>  CEOs, in general, IMO, are grossly overpaid.

Depends on the CEO.  IMO most of them are.
 
 BK>  Why do you object to autoworkers earning a middle class wage?

Because $40/hour plus benefits is too much to pay for what is basically
unskilled labor.  Skilled craftsmen make less than that in most places.

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