Labor costs and automakers

We have previously posted about American automakers being a proxy for organized labor. Now we find the bashing of American automakers also falling into the "facts matter" realm. Part of General Motor's turnaround is based on a real reduction of labor costs for hourly workers, according to the Center for Automotive research. In fact, in 2008, the average wage for hourly workers at GM was almost a thousand dollars a year lower than Toyota's average wage. Salaried workers at GM, however, averaged over $40,000 a year more than salaried workers at foreign automakers. This information strongly suggests it is not labor costs subject to collective bargaining which cause GM to be at a competitive disadvantage.