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Michigan UAW Supporters Protest against Detroit 3 Wage Cut

Despite the fact that most automakers are currently focusing on the 2009 North American Auto Show, American companies are obviously still seeking to solve their financial problems which brought them close to bankruptcy in December 2009. And according to recent reports, problems are far from being over because more than 250 supporters of the United Auto Workers (UAW) protested in Warren, Michigan against the wage cut plan proposed by the Detroit 3. Ford, Chrysler and General Motors may consider adjusting wages and bonuses in order to align its payments with foreign automakers in the United States.

Approximately 20,000 out of 139,000 residents of the city are currently working in the automotive industry, The Detroit News wrote citing local officials. In addition, 3,000 workers are employees by suppling companies and part manufacturers in the region. This means that every single wage cut could affect a large part of the residents, including their families and, indirectly, the city, Waren authorities explained.

"Fifteen percent of our city general fund and 15 percent of our city water and sewer budget comes from Chrysler and GM taxes. Any disruption of these funds would most certainly result in layoffs of public safety personnel,”Warren Mayor Jim Fouts was quoted as saying by The Detroit news at the "Stand Up for American Workers and Products Rally" at Warren City Hall.

Obviously, local Detroit 3 workers explained that such wage and benefit cut would seriously affect their families, to say nothing about any potential job cut prepared by American automakers.

"I bring home about $900 a week. I got two kids and one is going to head off to college next year. I've got a mortgage payment. I'm not ashamed to cash my check; I tell you what, I work my butt off,” Ford Motor Co. assembly line worker Brian Pannebaker, 49-year-old, told the aforementioned source.

On the other hand, Ford Motor Company explains that everything goes according to the plan and, in case things remain on the same ascending trend, they should be back in business as soon as 2011. "It basically assumes the contract we have with the UAW. Clearly, if some of those elements change, it will be a benefit to the business,” Ford Americas President Mark Fields told Wall Street analysts.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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