Current:Home > reviewsUAW Strikes: How does autoworker union pay compare to other hourly jobs? -WealthRoots Academy
UAW Strikes: How does autoworker union pay compare to other hourly jobs?
View
Date:2025-04-13 05:35:26
With no slowdown in sight, thousands of members of the United Auto Workers Union are entering their fifth week of striking against the Detroit Three automakers.
Most recently, 8,700 workers at Ford’s largest plant walked off the job, putting the company at risk of losing roughly $30 million per day in profit.
Workers at the Ford Kentucky Truck Plant build the Ford Super Duty, Ford Expedition and Lincoln Navigator. Super Duty is among the most profitable products Ford sells. The vehicles built at the factory generate $25 billion a year in revenue, according to a statement from Ford.
Hourly union workers at the plant are calling for a fair contract and better pay, joining the 25,300 autoworkers already on the picket lines at certain Ford, GM and Stellantis facilities across the country.
According to reporting from the Associated Press, the Detroit Three have already laid off roughly 4,800 autoworkers at factories that are not on strike. Striking workers are receiving $500 a week from the union's strike pay fund.
UAW strikeWhere things stand as strike hits 1 month mark and some workers grow impatient
How does autoworker pay compare to other hourly workers?
According to the U.S. Bureau of Labor Statistics, an average autoworker makes about $28 per hour. This wage increased about a dollar from the year before.
In states where the the Detroit Three automakers have factories, workers are striking for better pay. Here is how average hourly pay compares in other common occupations:
- Within the childcare industry, food preparation and serving industry and production industry, production jobs pay the most per hour across all states.
- The average hourly wage for production workers is the highest in California, Washington and Illinois, each of which are among the top 20 most expensive states in the U.S., according to the Bureau of Economic Analysis' regional price parities data.
- The average hourly wage for childcare workers is the lowest in Kentucky, which is among states where consumer goods are the cheapest in the U.S., according to BEA data. Childcare workers there earn an average of $12.28 an hour.
How does autoworkers' pay compare to that of CEOs?
Autoworkers say their pay has stagnated even as the profits of Detroit’s car companies and CEO compensation have increased.
The three companies have near-record profits, collectively reporting $21 billion in earnings in the first half of this year alone.
"The union is saying, 'Wait a minute. You put the COLA on pause, so let’s reinstate it because you’re making money now and we see the CEO pay go higher and higher," said Art Wheaton, director of labor studies at Cornell University in Ithaca, New York.
Top-tier workers – meaning anyone who joined the company in 2007 or earlier – make roughly $33 an hour on average, contract summaries for the Detroit Three show. Those hired after 2007 are part of the lower tier and earn up to $17 an hour based on a buildup of 6% annual raises under the last contract.
Not all autoworkers at the Detroit Three come close to the top pay rate. Temporary or supplemental workers make less.
And as far as compensation to the CEOs – $29 million for GM’s Mary Barra, $21 million for Ford’s Jim Farley and $24.8 million for Stellantis in 2022, as the Free Press recently noted.
UAW strike:Here is what Detroit automakers have to give the UAW to get a deal, experts say
What is UAW striking for?
- Eliminating wage tiers
- A 40% wage increase over the life of the contract. The 40% signifies the increase in CEO salaries.
- Restoring the cost-of-living allowance adjustments to counteract inflation.
- Defined benefit pension for all workers.
- The right to strike over plant closures.
- A reduced work week and more paid time off.
- Limiting the use of temporary workers.
- Increased benefits to current retirees.
Since the strike began in mid-September, UAW president Shawn Fain has expanded it twice to include 38 parts distribution centers across the nation and GM's Lansing Delta Assembly, along with Ford's Chicago Assembly and Kentucky Truck.
There are about 115,000 UAW members still on the job.
Jamie L. LaReau contributed to this reporting
veryGood! (79)
Related
- Pressure on a veteran and senator shows what’s next for those who oppose Trump
- Israeli man indicted for impersonating a soldier and stealing weapons after joining fight against Hamas
- Federal appeals court denies effort to block state-run court in Mississippi’s majority-Black capital
- Kentucky governor backs longer list of conditions eligible for treatment under medical marijuana law
- Have Dry, Sensitive Skin? You Need To Add These Gentle Skincare Products to Your Routine
- Lululemon founder says brand isn't for everyone: 'You don’t want certain customers coming in'
- Over a week after pregnant Texas teen Savanah Soto and boyfriend Matthew Guerra killed, a father and son have been arrested
- Backers of an effort to repeal Alaska’s ranked voting system fined by campaign finance watchdog
- The FTC says 'gamified' online job scams by WhatsApp and text on the rise. What to know.
- Claiborne ‘Buddy’ McDonald, a respected Mississippi judge and prosecutor, dies at 75
Ranking
- US wholesale inflation accelerated in November in sign that some price pressures remain elevated
- Senegal’s opposition leader faces setback in presidential race after defamation conviction is upheld
- 4 patients die after a fire breaks out at a hospital in northern Germany
- Senegal’s opposition leader faces setback in presidential race after defamation conviction is upheld
- Tree trimmer dead after getting caught in wood chipper at Florida town hall
- Exploding toilet at a Dunkin’ store in Florida left a customer filthy and injured, lawsuit claims
- Florida Surgeon General Dr. Ladapo wants to halt COVID mRNA vaccines, going against FDA
- Florida surgeon general wants to halt COVID-19 mRNA vaccines; FDA calls his claims misleading
Recommendation
North Carolina justices rule for restaurants in COVID
Louisiana Gov. John Bel Edwards will join law firm after leaving office
Sudan paramilitary leader says he’s committed to cease-fire, but no progress on proposed peace talks
The (Pretty Short) List of EVs That Qualify for a $7,500 Tax Credit in 2024
2025 'Doomsday Clock': This is how close we are to self
What can ordinary taxpayers learn from the $700m Shohei Ohtani baseball megadeal?
Survivors are found in homes smashed by Japan quake that killed 94 people. Dozens are still missing
New year, new quiz. Can you believe stuff has already happened in 2024?!