Speedzzter

Should We Really Bail Out the Big Three Automakers with $73.20 Per Hour Labor?

Federal labor policy in the 1930s infected the Detroit 3 with expensive union labor.

The Big 3 have been stuck with uncompetitive, non-market-based labor costs ever since. Moreover Japanese protectionism and government subsidies shielded Japanese car makers and bankrolled much of their advanced technology. State right-to-work laws created a safe haven for the "Japanese invasion" that was unavailable to the Detroit 3. Meanwhile Detroit paid the lion's share of the unfunded mandates on emissions and safety compliance.


The fix should level the playing field by shifting most of the legacy costs across the entire auto industry and tying UAW labor rates to market rates for labor. And the $100 Billion costs of increased Corporate Average Fuel Economy compliance should also be spread to those who supposedly will benefit.