Quote:
Originally Posted by Rearden
Here's a data point.
http://www.tcsdaily.com/article.aspx?id=111308A
Total compensation per hour for the big-three carmakers is $73.20. That's a 52 percent differential from Toyota's (Detroit South) $48 compensation (wages + health and retirement benefits). In fact, the oversized UAW-driven pay package for Detroit is 132 percent higher than that of the entire manufacturing sector of the U.S., which comes in at $31.59. |
I wonder how Toyota gets away with so much less in the way of compensation. Their whole package is worth just a wee bit more than just the "Big Three"'s benefits.
Assuming the costs for medical services are about the same for all of us, here does Toyota save on benefits? I would guess on less than full coverage medical plans and lower pensions. So, with less value in those plans for workers, do those workers settle for substandard care and retirements? Or are we somehow taking up the slack somewhere else?
This is where I am going with this: My wife is a nurse by profession, but works in the managerial end of the biz these days. Most of her patients come in with inadequate coverage for the care they need. Patients that work full time for big companies with benefit packages. Companies that are probably much like Toyota. So who pays the difference? We do. Through public health and assistance programs. The money has to come from somewhere.
Wal-Mart is probably the most extreme, infamous example of what I am trying to illustrate. They provide no benefits whatsoever. They actually train their employees with regards to how to take best advantage of public assistance programs. So the rest of us foot the bill for medical coverage on their employees.
Where does Toyota land on this spectrum, between that of "full coverage" (I am assuming the UAW still gets that, what with the cost of their benefit package) and no coverage, ala Wal Mart? Has Toyota simply kept their benefit costs in check by sloughing some off on the public, on the taxpayer? If so, would we rather the Big Three do that?