Re: why new cars cost so much

Posted by Bret4207 on January 26, 2014 at 05:30:04 from (64.19.90.196):

In Reply to: why new cars cost so much posted by Jiles on January 25, 2014 at 08:06:58:

Jiles said: (quoted from post at 09:06:58 01/25/14) There are many people who talk about organized labor, who have a limited knowledge about the subject. I hear people talking about the high wages that union members receive. I was a member of IAM for 35 years while working as a machinist for a large Aluminum Plant. I was previously a Tool&Die Maker working in a Non Union shop, and I took a cut in pay to work for this company because of insurance and retirement. Over the years, at no time in my employment was I making more money, per hour, then any of the independent shops!! Yes--there are good and bad things about Organized Labor, just like nearly everything else. High wages did not kill unions--I think unions killed themselves, or weakened their power by not supporting the members! If there had never been organized labor, we would probably have 12 year old children working long hours in unsafe conditions for very low wages like you see in many other countries. Over the years, News Media and other sources quoted our wages with all benefits--including insurance and retirement added. That's why most people were under the impression that union employees made $35-$40 per hour, when in reality we were receiving about $19-$22 per hour!

Jiles, can we get back to reality here? "In reality we were receiving $19-22.00 and hour". Great, and what were non-union workers doing the same job making? You don't provide any specifics, just the claim your wages were inflated to make you look bad. It's fundamentally dishonest to not provide the actual cost of employing you. You might be paid $20.00 an hour and have another $20.00 or more in benefits. It all adds up and you have to compare that to the non-union guy making $10.00 and hour doing the exact same job with much lower or no bennies. I see this all the time, this practice of ignoring the actual cost of an employee as opposed to what he takes home. The cost of employing you or a non-union man both need to have all the costs included to be able to make an accurate assessment.

There is a certain level you get to where the cost of employing people outweighs what profits you can make. If 2/3 the cost of a new auto is tied up in employee benefits or retirement costs, then the price of the product has to rise. So todays $75K luxury truck could theoretically be sold for 1/3 or more less if all the bennies weren't tied up in the price. A lot more new cars would be sold if the price were lower. Same with anything else. Look at public employment, your land and school taxes are high no doubt, due partially to all the union wages and bennies the workers get. Who pays the price for all the wagers and bennies? The taxpayer, the consumer. You make it sound as though it's a free ride for the taxpayer and consumer, as though business can just absorb employee costs. Not so, never has been. And that's why so many businesses leave the US.

This post was edited by Bret4207 at 05:36:01 01/26/14.

Replies:

Add a Reply Name: E-Mail: Subject: Comments: Optional Link URL: Link Title: Optional Image URL: Optional Video Title: Optional Video URL: Email Notification: If you check this box, email will be sent to you whenever someone replies to this message. Your email address must be entered above to receive notification. This notification will be cancelled automatically after 2 weeks.   Advanced Posting Tools   Upload Photo  Select Gallery Photo  Attach Serial # List  Return to Post

TRACTOR PARTS	TRACTOR MANUALS

We sell tractor parts!  We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]