Wage Discrepancy Explained

The following is a diagram from the New York Times displaying the discrepancy between U.S. Autoworkers and Japanese Autoworkers. The notion of Labor cost has been distorted to mean “hourly pay”. Yes, this is technically hourly pay going towards employment costs, but not to current employees. Check the chart, it is pretty self-explanatory.

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One thought on “Wage Discrepancy Explained

  1. Thanks for the clarification. I too was under the impression that GM workers were getting $71 or more dollars per hour, seems that they are in fact getting $29 per hour, with more benefits etc.

    Legacy costs are a big problem, seems planners forgot to account for an increasing life-span for their former workers.

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