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At Home in Utopia

With GM and Chrylser going bankrupt there’s a lot of blame that gets directed towards unions.  Unionized labor at GM costs $71 per hour.  In comparions Toyota has no unions and their labor cost is only $47 per hour.

Joann Muller wrote a great piece in Forbes on why the unions aren’t to blame.  She writes that one of the major expenses GM faces aren’t employees being paid that much more than the workers at Japanese automakers, but the legacy costs.

it’s misleading to suggest that Detroit autoworkers are paid $71 an hour. About $17 of that is the cost of health care insurance for retirees. General Motors has 442,000 retirees in North America, four times as many current employees. Toyota has only 371 retirees in…

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