Volkswagen’s Tennessee plant sets new standard for low wages
#1
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Volkswagen’s Tennessee plant sets new standard for low wages
What is amazing to me is the new Jetta is blander than any Toyota with a worse interior and drives like a 1995 Corolla yet I've seen more new Jetta's in the fast few months then I've seen old Jettas the last few years. It really has me puzzled.
http://www.wsws.org/articles/2011/se...chat-s23.shtml
Volkswagen’s new plant in Chattanooga, Tennessee, made headlines this year as the first US auto assembly plant to pay its entire production workforce the lowest starting wage for new US autoworkers—$14.50 per hour. But now the plant is starting all new production employees at $12 per hour, workers said, setting the bar even lower for autoworker wages.
In order to receive a bevy of state, federal, and local subsidies, Volkswagen promised in 2008 to create 2,000 local jobs at the “full” pay rate. But as production approaches full speed, all new production workers are now being hired in through Aerotek, Volkswagen’s labor contractor, at $12 per hour. In addition to the current production workforce, the factory employs over 500 temporary contract production employees, workers said.
“Aerotek workers are in assembly doing the same jobs as VW workers, they just work for a different company,” said one contract worker named Josh. “In orientation, we were told we’re considered equal to Volkswagen workers, and expected to work just like them.”
While discipline is severe for Volkswagen employees, Aerotek contractors have it even worse. “If you're five or six minutes late within your first week or two, you’re done.” said Josh. “If you call out a day within your first month and a half, you’re out,” he said.
“Anyone who talks about ‘spoiled American workers’ is very badly mistaken,” he concluded.
Despite the record-low wages paid by the plant, there has been no problem filling positions with local workers. The economic devastation wrought on Chattanooga over the past ten years has thrown tens of thousands of experienced and qualified industrial workers out of work as major factories shut their doors.
“These are the best-paying jobs available anywhere in Chattanooga,” said one Volkswagen worker who asked us not to use his name. “You do everything knowing there are a dozen people out there who would gladly do your job if you don’t want it.”
Volkswagen received over 35,000 applications for its initial hiring batch of 1,500 employees, and applicants continue to stream in by the thousands. On morning shift changes, applicants join the uniformed Volkswagen and Aerotek workers streaming into the plant’s gates.
“Every day for the past three months, 48 people have taken an 8-hour production simulation exam, hoping to land a job at the plant,” said Josh. “That’s over four thousand people wasting a whole day to fill five hundred positions,” he said.
In addition to the hundreds of contract employers from Aerotek, maintenance and food service is done by contractors who earn even less than production temps, in some cases as little as $8 per hour.
“Wages are falling everywhere; it’s true in Detroit and it’s true here,” said Josh. “But what can you do? Twelve dollars per hour is still a pretty good job around here.”
Wages in the area have fallen as high unemployment forces workers to take any job that becomes available. “It’s good business on the part of the companies,” said Josh.
Josh used to work for the local electrical company making $11.50, but started looking for other work when he found out his department was being cut. “I knew more layoffs were coming, so I started looking for work early,” he said. “I'’ve seen my coworkers laid off by the dozens.”
Josh said that two out of the seven Aerotek workers on his team were laid off from General Motors plants in Detroit, where they were paid $28 per hour or more, and moved to Chattanooga to start as temps making $12 per hour.
Many of those who make it through Volkswagen’s arduous hiring process cannot stand the mental and physical fatigue of production work. “Twenty or 40 people a week just walk out,” said Josh. “It's a very hard job.”
While the paint and body shops—where many temps start out—have their fair share of hard work, workers said assembly is the most arduous part of the plant. “I’ve been here since early August and I haven't even touched a car body,” said Josh. “They make sure you’re prepared, because assembly work is absolutely insane.”
The vast majority of those who applied for work at the plant were turned away. One of those was John Mayo, 57, who currently works as the head of the maintenance for a local marina. Mayo said he makes $13 per hour at the marina, and applied to Volkswagen for the benefits.
“They looked at my age and said, ‘he couldn't do this for 20 years.’ Sure, they overlooked my experience, but that’s how things go,” he added.
Mayo said he took off work to complete the application process, which took most of the day. Five of his co-workers at the marina applied for work at the plant, all unsuccessfully. “I’m not looking for a handout, just a decent job,” he said.
Mayo accepted his current job, despite the “ridiculously low rate of pay,” because he was laid off from his previous job as a maintenance head at a boat dealership, and collected unemployment for the first time in his life.
Daryl Okolley, who waits tables at a local diner by the plant, said he understands why people accept Volkswagen's low wages. “It’s hard to find any decent work anywhere around here.”
Okolley was one of over a thousand workers who lost their jobs when Wheland Foundry, an automotive brake casting plant in the South Side of Chattanooga, was closed in 2001. “One day they just got everyone together in the auditorium and said, we're closing down. About a week later I got a retirement check for $161, and that was that.”
He went from making $13 per hour at the foundry to minimum wage at a Kentucky Fried Chicken restaurant, before landing his current job. “It was quite an adjustment, to say the least,” he said.
Okolley made $13 per hour at the foundry. “At the time, that was a decent job,” he said. “But you can’t raise a family on that now.”
In order to receive a bevy of state, federal, and local subsidies, Volkswagen promised in 2008 to create 2,000 local jobs at the “full” pay rate. But as production approaches full speed, all new production workers are now being hired in through Aerotek, Volkswagen’s labor contractor, at $12 per hour. In addition to the current production workforce, the factory employs over 500 temporary contract production employees, workers said.
“Aerotek workers are in assembly doing the same jobs as VW workers, they just work for a different company,” said one contract worker named Josh. “In orientation, we were told we’re considered equal to Volkswagen workers, and expected to work just like them.”
While discipline is severe for Volkswagen employees, Aerotek contractors have it even worse. “If you're five or six minutes late within your first week or two, you’re done.” said Josh. “If you call out a day within your first month and a half, you’re out,” he said.
“Anyone who talks about ‘spoiled American workers’ is very badly mistaken,” he concluded.
Despite the record-low wages paid by the plant, there has been no problem filling positions with local workers. The economic devastation wrought on Chattanooga over the past ten years has thrown tens of thousands of experienced and qualified industrial workers out of work as major factories shut their doors.
“These are the best-paying jobs available anywhere in Chattanooga,” said one Volkswagen worker who asked us not to use his name. “You do everything knowing there are a dozen people out there who would gladly do your job if you don’t want it.”
Volkswagen received over 35,000 applications for its initial hiring batch of 1,500 employees, and applicants continue to stream in by the thousands. On morning shift changes, applicants join the uniformed Volkswagen and Aerotek workers streaming into the plant’s gates.
“Every day for the past three months, 48 people have taken an 8-hour production simulation exam, hoping to land a job at the plant,” said Josh. “That’s over four thousand people wasting a whole day to fill five hundred positions,” he said.
In addition to the hundreds of contract employers from Aerotek, maintenance and food service is done by contractors who earn even less than production temps, in some cases as little as $8 per hour.
“Wages are falling everywhere; it’s true in Detroit and it’s true here,” said Josh. “But what can you do? Twelve dollars per hour is still a pretty good job around here.”
Wages in the area have fallen as high unemployment forces workers to take any job that becomes available. “It’s good business on the part of the companies,” said Josh.
Josh used to work for the local electrical company making $11.50, but started looking for other work when he found out his department was being cut. “I knew more layoffs were coming, so I started looking for work early,” he said. “I'’ve seen my coworkers laid off by the dozens.”
Josh said that two out of the seven Aerotek workers on his team were laid off from General Motors plants in Detroit, where they were paid $28 per hour or more, and moved to Chattanooga to start as temps making $12 per hour.
Many of those who make it through Volkswagen’s arduous hiring process cannot stand the mental and physical fatigue of production work. “Twenty or 40 people a week just walk out,” said Josh. “It's a very hard job.”
While the paint and body shops—where many temps start out—have their fair share of hard work, workers said assembly is the most arduous part of the plant. “I’ve been here since early August and I haven't even touched a car body,” said Josh. “They make sure you’re prepared, because assembly work is absolutely insane.”
The vast majority of those who applied for work at the plant were turned away. One of those was John Mayo, 57, who currently works as the head of the maintenance for a local marina. Mayo said he makes $13 per hour at the marina, and applied to Volkswagen for the benefits.
“They looked at my age and said, ‘he couldn't do this for 20 years.’ Sure, they overlooked my experience, but that’s how things go,” he added.
Mayo said he took off work to complete the application process, which took most of the day. Five of his co-workers at the marina applied for work at the plant, all unsuccessfully. “I’m not looking for a handout, just a decent job,” he said.
Mayo accepted his current job, despite the “ridiculously low rate of pay,” because he was laid off from his previous job as a maintenance head at a boat dealership, and collected unemployment for the first time in his life.
Daryl Okolley, who waits tables at a local diner by the plant, said he understands why people accept Volkswagen's low wages. “It’s hard to find any decent work anywhere around here.”
Okolley was one of over a thousand workers who lost their jobs when Wheland Foundry, an automotive brake casting plant in the South Side of Chattanooga, was closed in 2001. “One day they just got everyone together in the auditorium and said, we're closing down. About a week later I got a retirement check for $161, and that was that.”
He went from making $13 per hour at the foundry to minimum wage at a Kentucky Fried Chicken restaurant, before landing his current job. “It was quite an adjustment, to say the least,” he said.
Okolley made $13 per hour at the foundry. “At the time, that was a decent job,” he said. “But you can’t raise a family on that now.”
#2
Lexus Fanatic
Its a sad and frustrating sign of the times, BUT it is a reality in the global economic climate that all of us are facing. American auto workers have been over paid for decades, now its simply dropping to a level that is closer to what the rest of the world and the market that the cars are sold in will allow. This is why our teachers and counselors told us to go to college and get degrees decades ago. You cant expect to raise a family comfortably on a high school degree any more ( college today is what high school was 30 years ago......bare minimum). In the 90's we had UAW members making more money per hour (with benefits) than a person out of school with a masters degree. Thats just BS imho
#3
Lexus Fanatic
Originally Posted by 1SICKLEX
Volkswagen’s Tennessee plant sets new standard for low wages
What is amazing to me is the new Jetta is blander than any Toyota with a worse interior
What is amazing to me is the new Jetta is blander than any Toyota with a worse interior
No arguments about the new Jetta, Mike. With the Scrooge-like cost-cutting that obviously went into that design (both inside and out), heck, VW should have enough left over to give everyone in the plant a nice bonus in their paychecks this year.
If you and I aren't fooled by the Jetta's cost-cutting, certainly the employees in the plant who actually build the car won't be, either.
Last edited by mmarshall; 09-27-11 at 03:25 PM.
#5
Thats very sad......but yes, those auto worker has been overpaid in the past and now they are facing the consequence of it. I have heard $30~$40/hour for assembly man in GM & Ford. They $12/hour for a adult to raise a family is alomst impossible. However, its good to heard that the job are staying in the US. That 2,000 worker would benefit another 2,000 in the area. It will cause a chain reaction on recovery.
#7
I work at Boeing where one of the main reasons for the IAM strike 3 years ago was because Boeing tried to lower to starting pay scale to $10.50/hr. That's for somebody with zero experience. They settled on $12/hr but most new hires come in around $14 or 15/hr. Mechanics with 6+ years of experience make any where from $33-36/hr. There's a reason Boeing is moving there production to South Carolina. Cheap labor. Also the same reason VW can afford to sell new Jettas for around $16k. Better off with 2,000 jobs than no jobs at all. Clearly, there's a demand for the jobs or 35,000 people wouldn't be applying.
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#8
Lexus Fanatic
iTrader: (20)
as for vw, tenn and new jobs being low wage, you can thank obamacare for a lot of that too. and the reality is in today's economy, manufacturing needs to be low wage to compete globally, or the cars will just be too expensive.
yes, german car works and uaw-extortion contract workers still make tons of money, but that won't last. hyundai/sk and china will see to that.
globalization happens.
#9
Lexus Fanatic
iTrader: (20)
oh and mike, you're reading the world socialist website now? smh
#10
Lexus Fanatic
And back on topic,
I've always thought auto workers were overpaid (especially the union ones) for the crap that they've built.
For example, the Chrysler workers who were high and drunk on the job building jobs. I don't care if there is a union, you don't deserve to make that kind of money for screwing the same bolts in everyday.
As long as they avoid the unions, I think they can grow in America.
#11
Lexus Fanatic
I work at Boeing where one of the main reasons for the IAM strike 3 years ago was because Boeing tried to lower to starting pay scale to $10.50/hr. That's for somebody with zero experience. They settled on $12/hr but most new hires come in around $14 or 15/hr. Mechanics with 6+ years of experience make any where from $33-36/hr. There's a reason Boeing is moving there production to South Carolina. Cheap labor. Also the same reason VW can afford to sell new Jettas for around $16k. Better off with 2,000 jobs than no jobs at all. Clearly, there's a demand for the jobs or 35,000 people wouldn't be applying.
#13
Lexus Fanatic
That's why Henry Ford, many years ago, voluntarily doubled his factory-wages at the River-Rouge and other plants, even though his company was not unionized, he had no legal reason to do so, and the workers had no formal contract (Henry stubbornly resisted the UAW until he had no choice). Henry figured (correctly) that more wages meant more money in his workers' pockets.....and more new Fords sold. History proved him right.
#14
see the American manufacturing will eventually come back, just need to lower our standard of living. Get used to it, this is the "new normal". Global wage arbitrage is on, if American's don't want the work, GM can git er done in Mexico.
#15
Lexus Fanatic
That's one thing that held up auto-sales in China for many years......the auto manufacturers were paying Chinese workers slave-wages.....and they couldn't buy anything. Now that wages in China are (finally) coming up, so are car-sales....in fact, China is now (arguably) the world's fastest-growing auto-market.
Last edited by mmarshall; 09-27-11 at 09:05 PM.