 Z801 point 77Premium
join:2009-08-31
Amerika | reply to neftv
Re: Unions The difference between Toyota and GM isn't the current workers, it's past workers who draw payments (pension and heathcare) while contributing zero to current production. GM has massive domestic LEGACY costs, they are paying for past workers whereas Toyota is a relatively new US factory presence in the scheme of things. In another 30 years, Toyota will be similarly hammered by US legacy costs just as they are getting hit with legacy costs in Japan. |
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 pnh102Reptiles Are Cuddly And PrettyPremium
join:2002-05-02
Mount Airy, MD | said by Z80:In another 30 years, Toyota will be similarly hammered by US legacy costs just as they are getting hit with legacy costs in Japan. Does Toyota offer a pension package to its US workers that is similar to what Detroit offers their workers? I don't think they do.
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Blagojevich / Madoff 2012! |
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Z801 point 77Premium
join:2009-08-31
Amerika
2 edits | »www.businessweek.com/magazine/co···ed_ssi_5
Detroit has or is currently gutting it's compensation system while Toyota's gets worse (financially speaking). Again, I'm not speaking of the past, I'm speaking of the future where there is going to be parity in labor costs between US automakers and foreign automakers assembling cars in the US and it has always been legacy costs, not hourly wages that hurt the big 3.
The days of a $1.5K difference in labor costs per car are numbered. Toyota can try and cut costs, but they are already pretty lean. |
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| reply to Z80
You can thank congress for trying to push through a 10 billion dollar gift to the UAW in the health care bill. I guess the govt just wants to help with these legacy costs. |
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| reply to Z80
said by Z80:The difference between Toyota and GM isn't the current workers, it's past workers who draw payments (pension and heathcare) while contributing zero to current production. GM has massive domestic LEGACY costs, they are paying for past workers whereas Toyota is a relatively new US factory presence in the scheme of things. In another 30 years, Toyota will be similarly hammered by US legacy costs just as they are getting hit with legacy costs in Japan. You`re conflating two different issues. The problem with Japan is that its workforce is growing older without an influx of new and younger workers due to a low birthrate. |
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