Saturday, January 13, 2007

Union Productivity Gap (neg) AND Pay Gap (pos)

According to the Harbour Report, the productivity gap between unionized autoworkers and non-unionized autoworkers has narrowed recently to "only" 7.33 hours per vehicle in 2006, measured by total labor hours per vehicle.

As recently as 1998, the productivity gap was almost 17 hours between unionized GM and Chrysler autoworkers, and nonunionzed Toyota, Honda and Nissan autoworkers according to Harbour.

In 1998, Jim Harbour said that "GM still trails the pack in most key labor productivity areas. If it were as efficient as Toyota's benchmark operations, it would not need the equivalent of 40,000 extra workers." (And that doesn't include the thousands of idle UAW workers in the "jobs bank.")

Think about it. Unionized autoworkers are more expensive than non-unionized autoworkers and significantly less productive. Should it be any surprise that GM and Ford are losing money and contracting, and Toyota and Honda are making money and expanding?

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