Commentary: The Auto Talks: Who Really Won

It looked like a clear case of highway robbery. The United Auto Workers reached into the pockets of Detroit's Big Three carmakers during recently completed national contract talks and drove off with the richest terms in two decades. By the time the new pacts expire four years from now, the 370,000 UAW members at the Big Three will be raking in $25 an hour, up 25% from today--plus a nice bonus and richer benefits. The union even forced auto makers to cough up expensive wage and benefit guarantees for workers affected by their parts units' spin-offs. Overall, the average worker will receive some $30,000 in added wages and benefits.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.