Here’s something I’ve been told and seen in my own employment deals: General rule of thumb is that you cost your employer 25% more than what you actually take home in pay to keep on the payroll.
Aside from what you take home there’s various taxes, your health care plan, retirement plan, the coffee you drink at work, toilet paper, payroll overhead, etc. It’s usually about 25% of your gross income, but not if you’re in the UAW.
They put their average cost of an hour of labor at around $71 last I saw. Some say as high as $81, but it doesn’t really matter. I’ve seen more than one person rush to their defense and say something like, “Oh but they only MAKE like $32 an hour! That number’s bogus!”
Well, guess what? It doesn’t matter if those dollars don’t show up on your paycheck directly, it still costs your employer money, and your compensation packages as a UAW employee are out of whack with what the rest of the world works with.
GM’s number ($71) reportedly includes the cost of its retirees and the jobs bank, not just the cost of that one worker (which isn’t in the 25% rule of thumb). Two areas that put GM in a disadvantage over Toyota, Honda, etc.
By virtue of being in existence far longer, and being such a large company for so long, they have far more retirees. I believe I read that GM has something like 3 times the number of retirees as employees.
Then there’s the whole jobs bank thing … we don’t have a job for you, but we’ll pay you anyway.
Yep, it’s out of wack….They need to start with a $5 dollar and hour pay cut and acutally work when they clock in! $5 an hour times 40 times 52 times how many workers? The CEO’s that have no clue how to even make a car look neat enough to buy need to take a pay cut. Matter of fact they need to gut their pay like a fish. I don’t understand why people get paid millions to run a company into the ground. They need to sell all but one private jet. They will recoup about 160 million there and save about 8 million a year in up keep as well. The list of high roller waste goes on and on and on. All money saved should be put into better parts that make better cars and lower prices. The big three would be on top again in 3 years!!! My 2 cents but what do I know, I have no debt and am not on the verge of receivership !!!