Readers of the Wall Street Journal might think so. The WSJ reports that the agreement that GM just signed with the UAW will allow it to hire new workers in non-core positions where they will "get paid about half or less of the $70-to-$75 an hour wage-and-benefit package traditionally given UAW members."
The problem with this statement is that much of this $70-$75 hour calculation refers to the legacy costs for retired workers. These are fixed costs that GM owes regardless of how many workers they currently employ. For bookkeeping and PR purposes it may be helpful to average these legacy costs over the hours worked by the current workforce, but the calculation does not reflect the money actually paid as wages and benefits to these workers.
Presumably GM will be paying its new workers less than the workers they replace, but the difference will not be $75,000 a year per worker. Hopefully GM has a better grip on these numbers than the WSJ.
Unlike many news organizations, the Prospect has remained staunchly committed to keeping our journalism free and accessible to all. We believe that independent journalism is crucial for a functioning democracy—but quality reporting comes at a cost. From Trump’s threat to the free press to Musk’s influence on our democracy, there is too much at stake in 2025 to stop now.
We’re behind on our goal to raise $75,000 to continue delivering the hard-hitting investigative journalism you’ve come to expect from us. Your support helps us maintain our independence and dig deeper into the stories that matter most.
We need you to make a year-end contribution today. Any amount helps secure our future and ensure we can continue holding power to account.
