Originally Posted by NYCAP123
The wages paid to the GM workers is not what got them into trouble. It was the premiums charged by insurance companies and pension fund administrators for the benefits that enabled the workers to have a roof over their heads and a doctor for their kids.
Not quite as true as you'd like to believe. The UAW forced the formerly-big three to continue to pay wages to non-working individuals (the jobs bank), in addition to paying union dues for those non-working collectors. The union dues were over 50% of the hourly take-home of the wage workers ($14 for the UAW, $25 for the paycheck, $15 for benefits and taxes).
As jobs were reduced, it was the cost of maintaining those non-workers on the books, in addition to providing them health care from retirement until death, plus a pension that really screwed GM. Why did the UAW fight to keep the jobs bank for so long? The unions were the fattest fat cats in this whole mess.
Know what the retirement package was for salaried employees? Ten years. Ten and done. No health care, no pension, no nothing come day one of year eleven. Too bad, so sad, should have planned better.
By the way, the going rate for licensed security guards in the NY/NJ/CT area is $10 an hour. The guy you're betting is going to keep theives from stealing the electronics off the boats in the marina is getting paid less than the boat washers, and not as scab labor.