Motoring Weekly

Workers protest against wage cuts

January 21 - 27, 2009
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Car workers vented their anger at bearing the brunt of swingeing cutbacks as the world's top manufacturers orchestrated glitzy launches of eco-friendly vehicles at Detroit's motor show.

At the Motor City's annual showcase, Japan's Toyota launched a new version of its Prius petrol-electric hybrid and General Motors set out plans to assemble lithium ion batteries in its Michigan heartland.

But in sub-zero temperatures on a snowy pavement outside the city's Cobo convention hall, the atmosphere was different. GM, Ford and Chrysler have begun talks with unions to lower wages to the level of their Japanese rivals, which would close a gap estimated at $10 an hour.

Noisy protesters blamed Wall Street's excesses for the credit crunch, which has frozen up car loans to consumers, leaving showrooms bereft of customers.

"We didn't cause the crisis," said George Windau, a millwright at Chrysler's Jeep factory in Toledo, Ohio, which has already had two of its three shifts suspended to save money. "They haven't asked the people who work for Wall Street firms, for banks, to cut their wages and benefits. Why do they blame us?"

Workers carried banners with messages such as 'Cutting wages won't solve Detroit's crisis'. GM and Chrysler must slash wages under the terms of the $17 billion bail-out provided by the US treasury to avert imminent bankruptcy. Ford is also seeking cuts, although it has not received a government loan, on the grounds that it needs parity with its rivals.

Underlining the scale of the downturn, the consulting firm CSM Worldwide forecast an eight per cent fall in global sales this year to 56.8 million vehicles, before a recovery to 60.8 million in 2010. It expects sales in the US to slump to a 27-year low of 11.5 million.







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