Let's take a look at the numbers here. This is about wages only, we'll not include benefits.
We'll use Henry's figures for example. They should fairly representative of the average UAW member. We'll use $30 per hour for the rate (averaging straight time, OT, higher paid skilled trades, etc). Let's assume 2500 hours per year. That puts the average GM UAW employee at $75K.
Like Henry said, he'd accept a around a 15% cut ($4.50 per hour). If that is applied to all members, each one would take approximately $11,750 pay cut per year, leaving $63,750 for take home gross.
GM's UAW membership is around 80,000. Applying that cut to each member yields a savings to GM of $940,000,000 per year. The obnoxious salaries that the execs are taking home (they obviously need to take a huge hit as well) are still a drop in the bucket to potential labor savings when taken as a whole.
What this doesn't show is the savings realized from reduced withholding matching funds GM has to pay (FICA, etc.). Further trimming from benefits will add up also, but I'm not up to speed on those particulars, so I'm not sure what can be gained there.
So, wage concessions alone could save up to $1,000,000,000 of cash flow per year for GM.
But wages etc. are only part of the issue. There are tons of issues in the contract that could be reasonably renegotiated that could yield similar savings.
We'll use skilled trades for example. Say a plant has to replace a motor and pump assembly on a machine. This would typically be handled by calling an electrician to disconnect the motor, a pipefitter to disconnect the inlet and outlet pipes, and a millwright to remove and replace the assembly. Same group on reassembly. This could be performed by one person if the trades were consolidated into a "General Maintenance" Department where everyone was trained in all aspects of plant maintenance. Obviously there would be need for specialists in certain areas, but you get the idea. This is generally how the rest of industry does things.
UAW insistence on union only contractors as another option for savings. Non-member temporary line workers have been accepted, so why not equal emphasis on outside contractors? When contracting out becomes necessary for a project, opening bidding up to all qualified companies could net serious savings.
We have worked non-union in many GM facilities, but GM also paid in house skilled trades while we were there. One example, we were on a project which we had 4 guys on site for 12 hours. To get approval for us to work on site, they paid a millwright crew (I think 5 guys, not sure) for 7 days, 12 hours per day. This isn't an attack on the rank and file membership or trades guys, 99% of the time they are awesome to work with and around. Just an example of reasonable, common sense concessions that could be made for GM and the UAW to survive and thrive.
Other programs like job banks, etc have been discussed to death. I believe UAW management has successfully, as of late, been addressing absenteeism issues, ghost clocking, etc. There has been stepped up efforts for self policing and that must continue.
I'll not get into the management issues here. It's harder to quantify numbers form the mistakes of doofus's.
I think with removing the emotional issues of negotiating, common sense cuts, in-plant lifestyle changes, and business practice, GM could again be a viable entity. There is to much good potential in place already with talent and product line to throw it away.
Besides, I never want to have to resort to driving a Super Duty.
