Study: Mercedes Holds Highest Average Labor Costs Among US Manufacturers
Who among all automakers has the highest labor costs in the United States? A study points to Mercedes-Benz.
According to Reuters, a study of 2014 labor costs by the Center for Automotive Research found that the automaker’s sole U.S. plant in Vance, Ala. averages $65/hour, while Volkswagen and BMW held the lowest averages overall and among the transplants, coming out to $38 and $39 per hour, respectively.
As mentioned previously, General Motors and Ford have the highest costs among the Detroit Three, averaging $58 and $57 per hour compared to FCA US’ $48. The three automakers are also the only ones whose employees are represented by the United Auto Workers, whose 2007 contract created the two-tier wage system meant to help the trio remain competitive against the transplants, as well as to stay afloat during the darkest days of the Great Recession.
Other automakers with business in the U.S. include Honda ($49/hr.), Toyota ($48/hr.), Nissan ($42/hr.), and Hyundai/Kia ($41/hr.).
The averages in the study were based on pay for both direct-hire and temporary employees working full-time. The research group also found that Japanese transplants had the highest percentages of temporary employees, helping to cut down on labor costs.
Seattle-based writer, blogger, and photographer for many a publication. Born in Louisville. Raised in Kansas. Where I lay my head is home.
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Percentage part time vs full for flexibility. Also saves on pension costs.
Just goes to show you, the machines matter more than the people making the cars, no matter how much you pay the people.
Unless you know how the numbers are calculated, they don't tell much. Which overhead items are included in each automaker's calculation? It is easy to envision that the Mercedes value could be the result of comparable fixed costs spread over a smaller number of workers; thus having little relationship to actual rate of pay.
Isn't MB's alabama plant known for all sorts of horrible quality issues though?