That’s cuase they report $73/hour in wages in benefits.
In reality, average wages are $28/hour.
Which means $45/hour are benefits. Medical, retirement, etc. That’s for the 350,000 employees and the ONE MILLION retires and dependents.
Which really means, GM has mismanaged the pension plans and is playing catch up.
So it’s $28/hour for the worker. Another $15 or so in retirement contributions and health coverage and another $10 for the 1st retiree, another $10 for the 2nd still living retiree, and another $10 for the third retiree’s still living dependents…
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I don’t think the problem is GM mismanaging their pension. Instead, the problem was the UAW negotiating outrageously generous retirement plans for their members. The people I know who are retired from the UAW have been retired since their 40’s. The UAW retirement plans are better than the militaries’.
The Big 3’s fate was sealed long ago when the UAW negotiated these overly generous pension plans. GM is essentially a smaller version of the U.S. Social Security System with more generous retirement benefits.
The same thing that is now happening to GM will happen to SS in the future. And it won’t be (totally) because of mismanagement. Nope, the main culrpit will be overly generous benefits that were fine when the base of the pyramid was wide but are unsustainable once the pyramid is inverted.
