GM, Ford, Fiat Chrysler labor costs rise in new pacts: study
The GM logo is seen at the General Motors Lansing Grand River Assembly Plant in Lansing, Michigan October 26, 2015. Photo taken October 26. REUTERS/Rebecca Cook -
Get Alerts GM Hot Sheet
Join SI Premium – FREE
DETROIT (Reuters) - Hourly labor costs will rise to an average of $60 per auto worker by 2019 if proposed contracts at General Motors Co (NYSE: GM) and Ford Motor Co (NYSE: F) are ratified by rank-and-file members of the United Auto Workers union, a study released on Friday said.
Hourly wages account for slightly less than half of total labor costs for UAW workers, which include healthcare and other benefits.
Ford's current labor costs average $57 per hour and GM's average $55 per hour, according to the study by labor analysts Kristin Dziczek of the Center of Automotive Research and Arthur Schwartz, a private consultant.
Fiat Chrysler Automobiles
The rise of labor costs at Fiat Chrysler was the most among the Detroit Three automakers, and narrowed the cost advantage the company still maintains over GM and Ford, the study found.
Ford's UAW members will continue voting whether to ratify a proposed four-year contract until Friday evening. On Wednesday, UAW leaders said that with three-fourths of the vote counted, 52 percent of workers were against the new pact. That was before a big auto plant in Chicago voted 68 percent against the contract.
GM's four-year contract was approved for ratification by 55 percent of UAW members voting but skilled trades workers turned it down, delaying ratification.
The UAW's top leaders were meeting on Friday afternoon and were expected to approve the new GM contract for ratification, people familiar with the matter said.
Hourly labor costs are lower for most of the foreign automakers with U.S. plants, which puts a lid on wages and benefits of the Detroit Three automakers. At Toyota Motor Corp <7203.T>, per hour labor costs are $48 per hour, and they are $49 per hour at Honda Motor Co <7267.T> and $42 per hour at Nissan Motor Co <7201.>, according to the Center for Automotive Research.
(Reporting by Bernie Woodall; Editing by Tom Brown)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Midday movers: Meta, IBM, Caterpillar fall; Chipotle rises
- Pakistan's economic conditions show improvement, says PM
- Russian central bank holds rates at 16%, raises inflation forecast
Create E-mail Alert Related Categories
General News, ReutersRelated Entities
Chrysler LLC, Second Curve CapitalSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!