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US Automakers Considering Change in Pay for Workers

US automakers may be taking a page from the Japanese automakers in how they pay their workers, by providing around fifteen percent of the pay for workers via lump sum compensation and bonuses. This comes at a time when the union is trying to get the major automakers to provide their workers with annual bonuses, of which Ford, Chrysler and GM really are not considering doing. Instead, offering this as a possible solution to the problem. The automakers would offer around $100,000 of bonuses a year that would be given based on production and the goals of quality being met. 

The Union's President Bob King said that the union was open to the possible solution, as nothing is set in concrete just yet. This could be a turning point for the UAW since it would be the first real change since the fifties, when the President won compensation for those workers that were laid off. This is all part of King's plan that employees share with the success of the company, which in most people's mind is going to urge the worker to do better since their pay will depend on it. 

Already, some of the automakers have sent their employees paychecks based on the company doing well. For example, Ford sent around 40,600 workers checks that were for around $5,000, GM sent 45,000 workers around $4,300, and Chrysler is paying its union workers around a $750 bonus. Those that work in the automotive industry, if everything works out as planned for the UAW, could see these checks twice a year. One time that would be mandatory due to the success that the automaker was having and the second completely reliant upon the production of the company workers. 

Is this new plan going to go over well with workers? More than likely not, as most workers want a job that is dependable, and given the economy for the auto industry what happens next is anyone's guess. True the workers like getting their bonus, though they want to make sure that they have a steady income all year long.