Well, so much for earning a Ph.D.....
Dr. Mark J. Perry, a professor of economics and finance at the U of Michigan, has done a study comparing the compensation packages of UAW workers against that of those of college professors, and, well, you can guess the results...
It's just one more example of how screwed up this world is when it comes compensation vs. job value. Just ask any social worker; nurse; public school teacher; and yes, college professorbut don't dare ask any celebrity; professional sports figure; doctor; lawyer; company CEO or UAW worker.
Even more ironic is the fact that many (not all, but many) college professors, have had to fork out money from their own pockets (or parent's pockets) to go to college and grad school. Not so for most UAW workers. And yes, I know that some may have gone to community colleges or trade schools for a year or two. Regardless, the cost of post-high school education for college professors (8 years or more) is much higher than any post-high school education for the average UAW worker (0 2 years if you're lucky).
When you consider that a college professor starts his or her career later in life than the average UAW worker (because of all the time spent in college vs. right out of high school or community college/trade school), and that he or she has much more money invested in education, the already large "life's earnings gap" widens considerably more. Simply put college professors, on average, spend fewer years in the work force than UAW workers. Combine that with the already huge annual compensation gap between college professor and UAW workers, and it's easy to see how the UAW worker comes out ahead at retirement time.
Full story here at Autoblog and here at Dr. Perry's blog Carpe Diem.
Related story here at Forbes.
Final point: This is not a slam against the working man, but rather a commentary about job value and compensation thereof, and how out of whack it is. But you already knew that, right?
bbechtel16 says:
07:49 AM, 07/16/07
I bet you can guess my opinion on unions. Yes they helped put a stop to sweatshops and ridiculous working conditions back in the day but I don't see a need for them anymore. Their biggest recent accomplishments seems to be putting American industries out of business. Steel, done. Automotive, next up.
trackwrex says:
09:25 AM, 07/16/07
and they want MORE money??? this is getting ridiculous! and the American automotive business goes the way of the Dodo (like bbechtel said).
blackadder5639 says:
09:41 AM, 07/16/07
Ridiculous!!!! I wouldn't go as far as saying that unions are now outdated, but this is still ridiculous.
estreka says:
11:24 AM, 07/16/07
Unionizing is not an outdated product. A union is absolutely necessary in businesses where working conditions are barbaric and costly (think meatpacking industry). The problem with unions is that once working conditions are closer to where they need to be, the unions don't fade out. To the contrary, they become stronger. So much so, in fact, that it can bring down the very company that writes the paychecks.
Until the past couple of years, no one knew how to dismantle a union. Unfortunately, it appears the company must be in dire straits for that to happen.
estreka says:
11:26 AM, 07/16/07
Oh, also the Delphi deal should bring UAW worker salaries down considerably. Within the terms of the agreement, workers receive $14-$18/hr, much more along the lines of non-college employees.
ateixeira says:
01:14 PM, 07/16/07
I'm speechless...
sddoc07 says:
01:53 PM, 07/16/07
This sort of highway robbery is being attempted all over again by the grocery store unions in California. These guys actually think that a supermarket bagger or the checker in aisle 9 should get full benefits, etc with almost no contributions or caps on their own health care plans. You can't even get benefits like that after over a decade in graduate education!! What's even better is that so many of these grocery workers are either undocumented or are simply naturalized aliens. When tax day comes around, this kind of stuff makes you want to punch a hole in the wall.
desmolicious says:
02:33 PM, 07/16/07
So Chrysler's employees get paid 50% more than the Japanese employees. So why aren't their cars 50 % better?
How about basing pay on product performance? Bet that'll be a kick in the pants.
desmolicious says:
10:34 PM, 07/16/07
And now it all makes sense why a crappy fully loaded Sebring costs $39K.
bbechtel16 says:
06:04 AM, 07/17/07
"Unionizing is not an outdated product. A union is absolutely necessary in businesses where working conditions are barbaric and costly (think meatpacking industry). The problem with unions is that once working conditions are closer to where they need to be, the unions don't fade out. To the contrary, they become stronger. So much so, in fact, that it can bring down the very company that writes the paychecks."
That's what I'm saying! Are there any industries left in the US with these kinds of conditions (and legal workers)?
Ditto to everyone's comments.
drfill says:
08:26 AM, 07/17/07
More evidence of piss-poor management. Couple this with the medical/legacy costs, and you have a Ford Focus instead of a Mazda3
DrFill
ewilfong says:
09:13 AM, 07/18/07
The numbers are pretty absurd, no doubt. Ditto especially the comment about a crappy Sebring costing $39,000.
That being said, I'm curious to know what the average active UAW worker makes as a total compensation package. I think these numbers reflect labor cost per worker (active or not), which includes tax liabilities the worker never sees (employer portion of FICA, unemployment taxes, etc.) It's not as though every Joe wrench-turner on the Sebring line necessarily gets $75/hr, though I imagine some might. Of course, regardless of what each worker actually gets, the per-person cost is driving the Big 3 under. Good job, unions!
On a non-car note that I just can't let slide, why lump doctors into the compensation vs. value comparison? Most provide a highly valuable service at tremendous personal sacrifice in both time and money. And they're thanked for it with decreasing insurance payouts, increasing insurance premiums, and increasing lawsuits.
estreka says:
09:45 AM, 07/18/07
They're discussing individuals with a doctorate, not necessarily a medical doctor. Specifically, the article discusses university professors.
rsholland says:
11:59 AM, 07/18/07
"On a non-car note that I just can't let slide, why lump doctors into the compensation vs. value comparison? Most provide a highly valuable service at tremendous personal sacrifice in both time and money. And they're thanked for it with decreasing insurance payouts, increasing insurance premiums, and increasing lawsuits."
Estreka, that was my comment about doctors, not the article's.
Ewilfong, I agree.Yet most still live in houses and drive cars that most of us mere mortals can only dream of. Do they deserve to be paid well? Absolutely, but no more so than do school teachers, nurses, etc.
desmolicious says:
12:31 PM, 07/18/07
I totally disagree about the medical doctors comments. An ex of mine is an obgyn doctor, and performs various surgeries. She is on call 3 days straight (this rotates to vary the days) and the way things work out, after working a 10 hour day gets called in for emergency surgery in the wee hours. If anything goes wrong, and that is defined as whether the patient decides this is the case, there is always the threat of a law suit hanging over her.
Complications happen, and there is a mortality rate to child birth, even in our modern day and age with the best that we have to offer. A distinct memory I have is driving her home with her in tears as she had to remove a baby that died in womb. Let me say that you don't want to know how this is done.
Yeah she gets paid a lot. But she still has insane med school bills to pay. And crazy insurance coverage. I don't think she gets paid anywhere near enough. Nurses have to deal with some of this stuff too, but to a lesser scale. Teachers? Yes they are extremely valuable but to think they should be remotely close to the same pay scale as doctors is a joke. My neighbour is a high school teacher. Sure she's busy during school time but she has the entire summer off...
rsholland says:
12:54 PM, 07/18/07
All true, and yet there other other doctors who merely remove warts, or who sit at a desk listening to people sitting on a couch talk, working normal hours, and who are making a ton of money.
Myself having had the benefit of both doctors, nurses and school teachers in the family, and with my daughter now being a nurse, I too have seen the good and bad side. Believe me, in most cases the nurses and school teachers get the short end of the stick, and always have.
estreka says:
01:53 PM, 07/18/07
Still, if doctors were not paid as much as they are, fewer people would spend the time and money to go through medical school.
I'm a little more comfortable with doctors overcharging for their services than there being a vast shortage of doctors. As long as there is little or no intervention to the medical field, an equilibrium will be reached.
jeffcmb says:
12:11 AM, 11/27/08
Why is it that people have so much resentment towards American workers making a decent living wage?
What Elitist said that going to college was a requirement for not living in poverty?
Has anyone questioned the salaries of AIG employees when we bailed them out?
The automakers negotiated contracts with Unions and failed to develop a viable plan to meet those contractual obligations.
The graph above is flawed as it take into account the pay of not just line and support workers but also management and executive level employees.
How much profit does the average college professor create a year anyhow?