Ford Quits Casting Operation

on pbs the other day they stated the average ford,gm,chyrsler uaw worker was being paid $70.00/hr while the us Toyota worker was being paid $40.00.

If those guys don't wake up the whole industry will be outsourced.. It is one thing to nibble on the golden goose and quite another to kill and cook it!!!

Hi Dr. Tom,

I did not see the pbs program that you refer to but $70.00 seems a little far fetched. I'm not sure whether "average" includes all workers or not. Since you mention uaw I assume you do mean line workers. I just can't believe the "average" line worker makes $140,000/year (that's $70.00/hour X 8 hours/day X 5 days/week X 50 weeks).

Nonetheless, your point is well taken. The unions do far more harm than good. Look what they did to Eastern Airlines! Until calamity hits them in the pocketbook, they'll never see the forest for the trees in front of their eyes.

Regards,

-John

As a former line dog of the UAW the $70.00/hr wage would include all the benefits that are not shown on the employee's pay stub. I don't have information on what Toyota pays as a part of the benefits package but it is far less of the Ford, GM, & DaimlerChrysler (future name TBD). I know when I left the Jeep operations from the line production to enter into a engineering consulting operation I was awakened to the cost very quickly. Also remember now the skilled trades workers fall under the "UAW" union for many of these companies, their pay is generally $10.00-$20.00 more per hour than the line dogs. For most of the UAW the base hourly rate for the line dogs are paid $27.00- $31.00 per hour depending on which manufacturing company.

I didn't see the PBS show though I know for a fact that a big tax on Ford is its pension payout. They were going though a time where every few years its leadership would turn over and be granted an unbelievable package. There is statistic thrown around (rumor) that for every new Expedition sold at MSRP, 60% of that cash is paying for outstanding pensions. That seems high but I would imagine it isn't far off.

Also, this is really too bad. Windsor is in enough trouble the way it is. It doesn't need to loose any more jobs!

Better late than Never!

This outsourcing is only a temporary move.Casting of Iron or Aluminium alloy means waste of material,energy.

Eventually Automatized Welding will take over-with robots as welders.,

I am sure Ford is already working on that strategy.

mm

Tell me more! Will you weld forged parts?

<The item began thus:

casting operations at its plant in Windsor, Ontario, after 73 years in which the site has produced more then 50 million cylinder blocks and crankshafts>

If Crankshafts by the million were done at the Casting facility--

Please note that ultra-reliable new welding techniques enable you to build up massive (20 Ton )crankshafts by welding .Automobile Crankshafts are insignificant. So too are Crank-cases.

I agree that line workers making $31.00 seems a bit much, but so does paying the executives million dollar salaries. Not to mention the endless levels of management.

Ever try to get in touch with someone at the big three without a direct line?

Almost totally imposable, although it can be done. Problem then is to get anyone to listen to you above the level of a clerk.

Being a custom car designer and in many cases making the first example of an automobile modification, I sometime need help from the big 3, never have I got any.

the original article said Ford is going to concentrate on it's core business, I guess they have resigned themselves to being just an assembler of parts, generally producing just another ho-hum product, just like the other two.

I hope someone wakes up soon or the domestic auto industry will go the way of the steel mills and the textile industry.

As an industrial manufacturing consultant I like to look a little further ahead. First of all we are at phase 1 of regular combustion engines going out. Second, there will be no work here at all if we can not be competitive with the low wages of the east plus shipping and warehousing costs, third this is a role shift, more modern technology can not be thought of and implemented if you hang on to near 75 years of the same old engine block.

Mirco Graenert.

"we are at phase 1 of regular combustion engines going out."

What do you mean by "regular combustion engines"?

You make a good point about being globally wage competitive. However, if Detroit had gotten off their butts years ago and taken a more innovative ad comprehensive look at the emerging metric automotive competition it would certainly have been a lot better off. As has already been mentioned, the UAW has been a major contributor to Detroit's problems and their lack of a greater global marketshare. I see the unions as one of the greatest hindrances to a free market economy. But even without unions the U.S. labor market will have a dickens of a time swallowing eastern wages.

Where do you think the "role shift" that you mention is taking the U.S. auto industry other than just outsourcing?

Regards,

-John