Daily News Article - November 18, 2008
1. How much does it cost per hour to employ a union auto worker at one of the Big Three (Chrysler, GM and Ford)?
2. Define compensation, benefits and legacy costs (para. 5) as used in this article.
3. What is included in the cost per hour to employ a Big Three auto worker?
4. How does the per hour labor cost for U.S. workers at the Japanese auto companies Toyota, Honda and Nissan compare with the Big Three?
5. How much more compensation does the average union worker at Chrysler make than U.S. manufacturing workers in general?
6. Why doesn't University of Michigan economist Mark Perry support a bailout for the Big Three?
7. a) Why does University of Michigan business professor Hart Posen question whether the 1979 bailout of Chrysler was the right thing to do?
b) Ask a parent or grandparent if he/she supported the 1979 bailout of Chrysler - why or why not?
8. Most people would agree that employees should try to get the highest compensation and benefits they can. The professors quoted for this article believe that the labor costs for union workers employed by the Big Three are too high. What do you think about their reasoning? Explain your answer.