Ford's Global Labor costs (excl. Asia)

[Road_Warrior]

Wage agreement renegotiations with the Canadian Auto Worker's Union have revealed a few things about how well off they are compared with Ford plant workers in other regions. The CAW has entered negotiations resisting any further "givebacks" than what it conceded in 2009.

http://www.bloomberg.com/news/2012-0...e-workers.html

Ford estimates that it spends $79 for every hour of work in Canadian plants, when including costs for benefits and retirees, compared with $64 an hour in the U.S., $48 in Germany and $35 in Australia, Lauren More, a Ford spokeswoman, said. Looking just at wage rates, CAW assemblers get about $34 an hour, 21 percent more than the $28 paid to a senior worker represented by the Detroit-based United Auto Workers union, she said.

Obviously this is all considered in US dollars, and Asia is cheaper than anywhere else but it slams the door on the claim that Australia is such a high cost place for Ford to build cars - at least when you compare it to North America and Europe. Particularly Ford Europe which is about to commence a painful restructuring process.

[Luke Plaizier]

Wow. Nice find.

[Yellow_Festiva]

Why are the NA figures so high?? I thought it was always a given that American workers got paid much less than us.

Having said that, the per hour figures quoted are not pay, rather what the company pays to keep that person employed. What is all the rest for? Bureaucracy? Insurance? It says ‘retirees and benefits’ are to blame but I would really like a little more detail. A look at the take home pay per hr for, say a plant worker etc.

[bobthebilda]

Originally Posted by Road_Warrior

Obviously this is all considered in US dollars, and Asia is cheaper than anywhere else but it slams the door on the claim that Australia is such a high cost place for Ford to build cars - at least when you compare it to North America and Europe. Particularly Ford Europe which is about to commence a painful restructuring process.

No one compares wage rates on its own. Its what work you get out off the worker for the money you pay him (productivity) thats important. I think i read somewhere (but cant find it now so dont quote me on it), that GM had a plant that made 3 times the amount of cars as Holdens elizabeth plant with the same amount of employees.

Ask any boss, and they would be more than happy to give someone a 50% pay rise, if they got 100% more work out of them (they'll save the money when they sack the second person).

And alot of the North American wage rates include pension requirements, which are picked up by the government here, but the company over there.

[aquahead2001]

I don't know how they compare that, I reckon the average person on the production line in Oz would be on probably $35/hr. Thumb suck and completely without any knowledge of the FORD AUSTRALIA ENTERPRISE AGREEMENT 2009 (VEHICLE AND GENERAL SALARY ROLL)

So by the time Ford added all the add-on costs such as superannuation, payroll tax, workcover, income protection, leave loadings and all the other costs, it would be around $50 per hour without any corporate overhead included.

[Brazen]

Which is precisely why Australia can have a prosperous motor vehicle industry. Where we lag is the vehicles we build, we need to making cars people want.

[DJR-351]

Time for a stop work meeting comrades.....

[ebxr8240]

Some plants lines pay under $20 an hour in U.S...

[jpd80]

Originally Posted by Yellow_Festiva

Why are the NA figures so high?? I thought it was always a given that American workers got paid much less than us.

Having said that, the per hour figures quoted are not pay, rather what the company pays to keep that person employed. What is all the rest for? Bureaucracy? Insurance? It says ‘retirees and benefits’ are to blame but I would really like a little more detail. A look at the take home pay per hr for, say a plant worker etc.

Holiday pay - 20 days
Public holidays - 10 days
Sick days - 8 to 10 days
Workers compensation insurance
Training programs
Toolbox meetings

All the things that have to be paid for and appear magically in the pay packet as needed..

[Nikked]

Wow...this is excellent news!


So, in effect...

Any Media that tries to say that the falcon is being replaced by an imported Taurus is wrong on two facts.

-The taurus isn't RHD, and is not known yet if the next gen will be.
-Why import if its cheaper to build here.


While this isn't a confirmation on post 2016 happenings in Australia, its a darn good indication on what could be planned. Ford know there is a market for RWD in a few sectors...and the Mustang is planned for RHD...

Might be optimistic, but you coulod say Australia could be Fords RHD RWD product base.


That, or a base for EUCD RHD products lol

[jpd80]

Originally Posted by ebxr8240

Some plants lines pay under $20 an hour in U.S...

only Tier 2 new hires, all the rest get about $25/hr... but most companies pick up
medical insurance for the family, workers comp and pension plan.

[jpd80]

Originally Posted by Nikked

Wow...this is excellent news!


So, in effect...

Any Media that tries to say that the falcon is being replaced by an imported Taurus is wrong on two facts.

-The taurus isn't RHD, and is not known yet if the next gen will be.
-Why import if its cheaper to build here.


While this isn't a confirmation on post 2016 happenings in Australia, its a darn good indication on what could be planned. Ford know there is a market for RWD in a few sectors...and the Mustang is planned for RHD...

Might be optimistic, but you coulod say Australia could be Fords RHD RWD product base.


That, or a base for EUCD RHD products lol

Yes
Yes,
yes
and god I hope so..

[GhiaEB]

Don't the North America plants also pay a pension when you retire? Kinda like our super except that is paid as a pension and not into a fund?

So how many retired workers are there in North America? Say 1 working and 3 retired?

[mik]

just because wages are more or less means bugger all imo, unless you take into account taxes, oh&s, raw materials, transport, utility cost, power water, gas, council rates,and all the other costs of doing business in respective countries i`d put a tenner on it we are still pretty high up the expensive ladder list.

[Bossxr8]

Originally Posted by aquahead2001

I don't know how they compare that, I reckon the average person on the production line in Oz would be on probably $35/hr. Thumb suck and completely without any knowledge of the FORD AUSTRALIA ENTERPRISE AGREEMENT 2009 (VEHICLE AND GENERAL SALARY ROLL)

So by the time Ford added all the add-on costs such as superannuation, payroll tax, workcover, income protection, leave loadings and all the other costs, it would be around $50 per hour without any corporate overhead included.

$25 an hr on the production line is about tops. Trades would make somewhere around 30-35 I think.

[Yellow_Festiva]

Originally Posted by jpd80

Holiday pay - 20 days
Public holidays - 10 days
Sick days - 8 to 10 days
Workers compensation insurance
Training programs
Toolbox meetings

All the things that have to be paid for and appear magically in the pay packet as needed..

Yes, I understand all that. Your list must be pretty close to what Aussies get wouldn't it be??

What is the minimum leave a full timer gets? 2-4 weeks? We also have a whole bunch of public holidays - prob about the same?? Sick days? I get 20 a year, what is the norm - I rekon 8-10 as well?
Our employers must also pay for some sort of insurance, training and other meetings just the same as the US.

Yet, the OP quotes figures between us and the US of around a 40% difference...

I still can't see how it can be that much more? I think it could be the retirement setup they have there?????

[kevino]

Plus personal protective gear and uniforms and boots if supplied by coy.

[bob^]

Originally Posted by Bossxr8

$25 an hr on the production line is about tops. Trades would make somewhere around 30-35 I think.

Yeah not far off.
Around $28 for a level 1, $35 for a level 6 trade.

[Franco Cozzo]

What trades do they have at Ford, I seen they where taking in apprentice motor mechanics at Broadmeadows in 2010.

What would a mechanic do over there besides the obvious (work on cars), its not like they service the cars there, would certainly be other type of jobs right?

[bob^]

They service the fleet cars mate. They also employ mechanics at the proving grounds and product development. As for other trades, you have maintenance electricians and fitter and turners. One or two plumbers and a couple of boiler makers and sheet metal workers are also employed.

[XR Martin]

I thought someone posted up something the other day showing that apart from Germany, we had the most expensive labour costs?

[Pandemic]

If its cheaper, then why has Ford said wages play a part as to why we pay more compared to other countries..?

[ebxr8240]

Then add per car costs .. Seeing we make less it would be higher per car...

[mik]

don`t forget a lot of the reason our wages are higher is because every bloody thing is expensive here, including doing business and cost of living !

[kevino]

Hyundai in Korea (per Article in todays Australian) are having issues with labour union. Union wants 13000 contract workers made permanent. Union wants the current 2x10 hour shifts per day down to 1 day shift citing health and family concerns. Company has offered 1x8 and 1 x9 hour shift, per day.
Hyundai/Kia due to industrial action are running out of stock.

It got me thinking about Fords underutilised car assembly plant at Broadmeadows and whether Ford could contract build Hyundais to take up assemby slack.
This would keep local workers in a job. Lets face it Hyundai and Kia are growing popular brands and the demand is there unlike models built now under the Ford brand which due to a changing market demand is slipping.

[FPV GTHO]

There's a misconception there though. It's Falcon that's becoming unpopular. Not Ford.

[DJR-351]

Originally Posted by mik

don`t forget a lot of the reason our wages are higher is because every bloody thing is expensive here, including doing business and cost of living !

Don't forget though, our high standard of living is one of the things we like to point out when saying Australia is a better place to live......kinda like a double edged sword.....

......or to put it another way....what is it really costing us to maintain this standard of living....

[BroadyFord]

Don't show these figures to the unions!

[Quicksand]

I wonder how these figures line up with Ford's factories in Asian countries (Thailand i think...?). That will probably be a real eye opener, and give an insight into the economies of scale gained in that region.

[mik]

Originally Posted by DJR-351

Don't forget though, our high standard of living is one of the things we like to point out when saying Australia is a better place to live......kinda like a double edged sword.....

......or to put it another way....what is it really costing us to maintain this standard of living....

I don`t know what the answer is(but i have my own theory), every week that goes by people are getting the bullet, another load of workers went from my brothers place of employment last week, his company are packing and going to manilla, to expensive to operate here.
i just think that the way our country`s is being run the only way for us to compete is to throw away some of the many things that Australians fought for many years, sick pay, holiday pay, penalty rates, some of the social safety nets, and i don`t believe we have to or should, it`s political policy imo and not just about wages..