Friday, December 19, 2008

Move a Bust

"However, an internal Toyota report, leaked to the Detroit Free Press last year, reveals that the company wants to slash $300 million out of its rising labor costs by 2011. The report indicated that Toyota no longer wants to 'tie [itself] so closely to the U.S. auto industry.' Instead, the company intends to benchmark the prevailing manufacturing wage in the state in which a plant is located. The Free Press reported that in Kentucky, where the company is headquartered, this wage is $12.64 an hour, according to federal labor statistics, less than half Toyota's $30-an-hour wage.
"If the companies, with the support of their senators, can wipe out or greatly weaken the UAW, they will be free to implement their plan."

Bruce Raynor in the Los Angeles Times explains why Southern Republicans have opposed bailing out U.S. automakers.

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