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Foreign automakers pay from $38 to $65 per hour to non-union workers

As leaders for the United Auto Workers gather in Detroit for their Special Convention on Collective Bargaining to work out the negotiating stance for this year's new labor agreements with the Detroit 3 automakers, what they most want to do is figure out how to eliminate the two-tier wage scale. However, the lower Tier 2 wage has allowed the domestic automakers to reduce their labor costs, hire more workers, and compete better with their import competition. As it stands, per-hour labor rates including benefits are $58 at General Motors, $57 at Ford, and $48 at Fiat-Chrysler – a reflection of FCA's much greater number of Tier 2 workers. The Center for Automotive Research released a study of labor rates (including benefits) that put numbers to what the imports pay: Mercedes-Benz pays the most, at an average of $65 per hour, Volkswagen pays the least, at $38 per hour, and BMW is just a hair above that at $39 per hour. Among the Detroit competitors, Honda workers earn an average of $49 per hour, at Toyota it's $48 per hour, Nissan is $42 per hour, and Hyundai-Kia pays $41 per hour. The lower import wages are aided by their greater use of temporary workers compared to the domestics. Automotive News says the ten-dollar gap between those foreign camakers and the domestics turns out to about an extra $250 per car in labor, which adds up quickly when you're pumping out many millions of cars. That $250-per-car number is one that, come negotiating time, the Detroit 3 will want to reduce, as the UAW is trying to raise both Tier 1 and Tier 2 wages. Another wrinkle is that the domestic carmakers are considering the wide adoption of a third wage level lower than Tier 2. Some workers who do minor tasks like assembling parts trays kits and battery packs already make less than Tier 2, but the UAW will be quite wary about cementing yet another wage scale at the bottom of the system while it's trying to fight a bigger battle at the top. News Source: Automotive News - sub. req., BloombergImage Credit: AP Photo/Erik Schelzig Earnings/Financials UAW/Unions BMW Chevrolet Fiat Ford GM Honda Hyundai Kia Mercedes-Benz Nissan Toyota Volkswagen labor wages collective bargaining labor costs

Nissan wants an American driver for its Le Mans team

"We'll use every driver development tool we have to take them to the next level, but they will also have to step up." - Darren Cox
Nissan is aiming to put an American behind the wheel of one of its LMP1 racecars in 2016 as part of plans to grow its motorsports program in the United States.

Suspects in Ghosn's Japanese escape stand trial in Turkey

ISTANBUL - Seven suspects went on trial in Turkey on Friday over their alleged involvement in former Nissan boss Carlos Ghosn's dramatic escape from Japan to Lebanon via Istanbul at the end of last year. Ghosn, once a titan of the global auto industry, had been arrested in Japan in late 2018 and charged with underreporting his salary and using company funds for personal purposes, charges he denies. The ousted chairman of the alliance of Renault, Nissan Motor Co and Mitsubishi Motors Corp had been awaiting his trial under house arrest in Japan when he made a dramatic escape in December to Beirut, his childhood home. An executive from Turkish private jet operator MNG Jet and four pilots were detained in early January soon after Ghosn's escape and charged with migrant smuggling, a sentence carrying a maximum sentence of eight years in jail. They appeared in white protective overalls, masks and gloves as a measure against the coronavirus, as the court in Istanbul began hearing their defence. Two flight attendants, charged with failing to report a crime - a charge carrying a sentence of up to one year - were also there. The first defendant to speak was a pilot on the Osaka-Istanbul flight, Noyan Pasin, who denied the charge. Prosecutors, in their indictment, had said MNG Jet operations manager Okan Kosemen - who is one of the seven on trial - knew before the Osaka flight that Ghosn would be on board and would transfer to Beirut. Kosemen, who also pleaded not guilty, said in court on Friday he was only told via phone about Ghosn's presence mid-flight from Osaka and cooperated under duress. The prosecution said Kosemen used WhatsApp to communicate with pilots before, during and after the Osaka-Istanbul flight, using terms like "luggage" and "consignment" to refer to Ghosn. The five other suspects also deny the charges, according to the indictment. SAGA SHAKES AUTO WORLD According to the indictment, Kosemen told prosecutors a price of $175,000 was agreed for the flight with a Lebanese broker and paid into MNG Jet's bank account. At the time of the incident, MNG Jet said Kosemen acted without the knowledge of the company and it had filed a criminal complaint for the illegal use of its aircraft. Japan has formally asked the United States to extradite two Americans - a former Green Beret and his son - who also stand accused of helping Ghosn flee Japan. They were arrested in Massachusetts in May.