5 of 6
BACKNEXT
Union workers
Union workers
After brief strikes in 2007, the UAW made serious cost-saving concessions that will help automakers in the future.
Gripe: Union workers get paid too much
Fact: Pay isn't the problem, it's benefits. But the UAW has made significant concessions.

GM, Ford and Chrysler all hire union workers to work in their U.S. factories. But their Asian competitors have based most of their U.S. factories in Southern "right-to-work" states where companies don't have to hire union staff. Combine that with an overall younger workforce with fewer retirees, and Asian automakers have big cost advantages in the U.S.

But even the Detroit automakers themselves don't claim to pay more than Asian automakers working in the U.S. GM estimates its hourly pay for an assembly line worker is about the same as that of someone working for an Asian manufacturer here.

The differences come from retirement and health-care. Detroit automakers pay a lot more per worker-hour because they have more retirees to whom they extend full health-care benefits.

What's to come: The UAW recently made significant concessions that should save GM, Ford and Chrysler a lot of money in the long run.

The union allowed Detroit automakers to pay newly hired workers less per hour than previously hired employees. It also agreed to take over the cost of retiree health care provided the automakers paid lump sums into an investment fund to cover the costs.

NEXT: Fat executive paychecks

Last updated December 08 2008: 6:50 PM ET
More Galleries
50 years of the Ford Mustang Take a drive down memory lane with our favorite photos of the car through the years. More
Cool cars from the New York Auto Show These are some of the most interesting new models and concept vehicles from the Big Apple's car show. More
8 CEOs who took a pay cut in 2013 Median CEO pay inched up 9% in 2013 to $13.9 million. But not everyone got a bump last year. Here are eight CEOs who missed out. More

Special Offer
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.