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Morning Joe debunks claim that union autoworkers are "paid 70 bucks an hour"

December 04, 2008 1:06 pm ET

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SUMMARY: Debunking the false claim, advanced by many in the media, that autoworkers employed by U.S. auto manufacturers receive $70 or more per hour in wages and benefits, Bob Shrum said on Morning Joe that "there's this one crazy statistic" that autoworkers are "paid 70 bucks an hour." Mike Barnicle added: "The $77 an hour thing is not true. It's the compilation of all the benefits." Joe Scarborough later stated, "[J]ust so everybody knows, when we talk about $77 or $45, we're not only talking about the money, the benefits, everything else, retirement, we're also talking about the money to -- the legacy costs of the existing retirees."

56 Comments

On the December 4 edition of MSNBC's Morning Joe, co-hosts Joe Scarborough, Mike Barnicle, and Mika Brzezinski debunked the false claim, advanced by many in the media, that autoworkers employed by U.S. auto manufacturers receive $70 or more per hour in wages and benefits.

After Democratic strategist Bob Shrum noted that "there's this one crazy statistic" that autoworkers are "paid 70 bucks an hour," Barnicle said: "The $77 an hour thing is not true. It's the compilation of all the benefits." Scarborough later added, "[J]ust so everybody knows, when we talk about $77 or $45, we're not only talking about the money, the benefits, everything else, retirement, we're also talking about the money to -- the legacy costs of the existing retirees." Shrum replied, "It's health care for ... people retired 25 years ago. I mean, that money's not going to anyone who's working there now." Brzezinski replied, "And they have a lot to carry with that." Scarborough concluded: "It's very misleading when you're talking about $77 an hour in labor costs. "

As Media Matters for America has noted, according to General Motors, the figure representing the hourly cost of labor to U.S. automakers -- a cost that GM puts at $69 -- includes not only current workers' hourly wages and benefits, such as health care and retirement, but also retirement and health-care benefits that U.S. automakers are providing for current retirees. Notwithstanding this fact, numerous media figures and outlets have advanced the falsehood that autoworkers receive $70 or more per hour in wages and benefits, some using it to blame autoworkers for the domestic auto industry's financial straits.

From the December 4 edition of MSNBC's Morning Joe:

SHRUM: There may be a better way, and I think the far better way is for Congress to come up with a serious plan, have a serious oversight board. Remember here that we're not just beating up the unions. After all, these are the people who represent those folks in Detroit. Well, there's this one crazy statistic, have you seen it? That they're paid 70 bucks an hour for auto workers?

BRZEZINSKI: Well, yes. This is debatable.

SHRUM: It's not true. It's --

BARNICLE: The $77 an hour thing is not true. It's the compilation of all the benefits.

SHRUM: Right. And the benefits of the retirees and the pensions of the retirees. It's actually about $28 an hour.

BRZEZINSKI: Really. OK, now we --

SCARBOROUGH: The thing is, even on that point, if you're comparing the $77 to the $45 that foreign automakers do, even that is only a two-year deal because they've already made corrective measures.

BRZEZINSKI: Renegotiated.

SCARBOROUGH: So, that $77 figure goes down to $45, $46 in 2010.

BARNICLE: And new hirees, I believe -- don't hold me to this -- but under the new contract that starts January 1, new hirees are receiving like $18 or $19 an hour, so it goes down even further.

SCARBOROUGH: And again, just so everybody knows, when we talk about $77 or $45, we're not only talking about the money, the benefits, everything else, retirement, we're also talking about the money to -- the legacy costs of the existing retirees.

BRZEZINSKI: Well, yes.

SHRUM: It's health care for -- health care for people retired 25 years ago.

BRZEZINSKI: Exactly.

SHRUM: I mean, that money's not going to anyone who's working there now.

BRZEZINSKI: And they have a lot to carry with that.

SCARBOROUGH: It's very misleading when you're talking about $77 an hour in labor costs.

BRZEZINSKI: That's true.

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    • Author by Limit Corp. Ownership (December 04, 2008 1:20 pm ET)
         

      Well, Morning Joe is not the place you'd usually expect to debunk corporate conservative misinformation...

      But, we'll take it.

      Way to go guys!!

      Report Abuse
      • Author by Caseysprings (December 04, 2008 1:24 pm ET)
           

        Only because Barnacle the phony was on. 

        Report Abuse
        • Author by eweston8542983 (December 04, 2008 1:30 pm ET)
             

          Examples of his phoniness would be? Dose his phoniness vary, or is it consistent and to what metric?

          An opinion is all well and good but throw some meat out there will ya!

          Report Abuse
          • Author by Col. Harlan Sanders (December 04, 2008 1:32 pm ET)
               

            Don't be so impatient, EW. I think the comment's being posted in installments.

            Report Abuse
            • Author by juliajayne (December 04, 2008 1:42 pm ET)
                 

              I think the comment's being posted in installments

              And posted by just one of the various nom de plumes.....who all just happen to hate anything MSNBC.

              Report Abuse
              • Author by mary59 (December 04, 2008 2:02 pm ET)
                   

                Julia, there's just too much hatiness going on in the world.  And too many contractions ;-)

                Report Abuse
                • Author by worrierking (December 04, 2008 2:14 pm ET)
                     

                  Too much hatiness?

                  I guess this new hat craze hasn't reached NJ yet. 

                  Report Abuse
                  • Author by juliajayne (December 04, 2008 3:50 pm ET)
                       

                    Oh now get off my gal Mary's back. Hattiness would apply to hats...:-0)

                    But I think her new spelling is better ,non the less..... Mary always endeavors to please. And to bring peaciness and tidings of great joy to all. :-0) 

                    Report Abuse
                • Author by donaldmaddog5642 (December 04, 2008 2:20 pm ET)
                     

                  mary59, you have just coined and contributed a great new word, "hatiness".  Stepen Colbert must be jealous!  I love it!  

                  Report Abuse
                  • Author by mary59 (December 04, 2008 2:21 pm ET)
                       

                    I could get it trademarked but I offer it to all the world in the spirit of world peace.

                    Report Abuse
                    • Author by donaldmaddog5642 (December 04, 2008 3:25 pm ET)
                         

                      Mary59:  Shouldn't that be world "peaciness"?

                      Report Abuse
                      • Author by mary59 (December 04, 2008 3:29 pm ET)
                           

                        Excellent!  I shall proceed with world peaciness from this day forth...

                        Worrier, I take you point about hats.  Perhaps we should spell the great new word "hateyness."

                        Report Abuse
                        • Author by mary59 (December 04, 2008 3:32 pm ET)
                             

                          Arrr, I forgot me "r" as in "your hats."

                          Report Abuse
                          • Author by juliajayne (December 04, 2008 3:52 pm ET)
                               

                            Arrr

                            No need to go "pirate" on us, Mar....:-) 

                            Report Abuse
                            • Author by mary59 (December 04, 2008 6:18 pm ET)
                                 

                              Pirateyness is not my specialty, but if they'd pay me $70 an hour I'd do it.  (see now this thread is back on track and totally relevant.)

                              Report Abuse
                • Author by captfoster2 (December 05, 2008 2:32 am ET)
                     

                  "too much hatiness going on....."

                  Is that like "too much truthiness" (Colbert)....      ;)

                  Report Abuse
              • Author by worrierking (December 04, 2008 3:11 pm ET)
                   

                "Nom de plumes"?

                Are you saying that petty soon someone will be calling someone a "sockpuppet"?

                Hey JJ,where's your New England beau ?

                Report Abuse
                • Author by juliajayne (December 04, 2008 3:45 pm ET)
                     

                  Are you saying that petty soon someone will be calling someone a "sockpuppet"?

                  Hell knows which set of sockpuppet nom de plumes who do not use contractions it might be. Not that I'm a nom de plume hater...:-)    

                  Hey JJ,where's your New England beau ?

                  Oh believe me, he's alive, well and kickin' up a storm. I got me a live one....wink, wink. I'll tell 'im you inquired...:-0)  

                  Report Abuse
                • Author by jeter2 (December 04, 2008 4:45 pm ET)
                     

                  Hey King, Miz Julia let me know you were asking for me. I am in fact alive & well...& kickin up a storm up here in New England

                  I'll be back one of these days. My sweet Texas gal hasn't exactly turned me into a full fledged Dem/Lib....but she's helping me see the light :-)

                  Report Abuse
            • Author by eweston8542983 (December 04, 2008 3:41 pm ET)
                 

              He came back with another opinion below.

              Ugh! Maybe I'm just a hateful impationist?

              Report Abuse
          • Author by Caseysprings (December 04, 2008 1:48 pm ET)
               

            His continued friendship and going on the Don Imus show. That to me is an example of phonyness. If he were sincere with alot of his "causes" he would not longer appear on the Don Imis show.

            Report Abuse
            • Author by SaddamHussein (December 04, 2008 2:14 pm ET)
                 

              I just hate Barnacle because he is a Red Sox fan.

              Report Abuse
            • Author by eweston8542983 (December 04, 2008 3:38 pm ET)
                 

              Another opinion...ok.

              Here's mine. I've been fortunate never to have heard his show. The number of people who have appeared on his show is probably well over 1000. Somehow I can't paint them all the same. Tragic failure on my part, no doubt. That some of those I might totally disagree with might say something good on the occasion, a further fall.

              There must be more to phoniness that appearing with Imus.

              Report Abuse
        • Author by Victor Colorado (December 04, 2008 1:31 pm ET)
             

          http://sidesalad.net/archives/DebbieDownerRachaelDratch.jpg

          Report Abuse
    • Author by pete592 (December 04, 2008 1:34 pm ET)
         

      One small victory for truth against an onslaught of lies and misinformation.

      Report Abuse
    • Author by shaggles (December 04, 2008 1:46 pm ET)
         
      Nice to see Scarborough & Co finally getting this right but how is this conservative misinformation?
      Report Abuse
      • Author by Caseysprings (December 04, 2008 1:49 pm ET)
           

        Pat Buchanan wants us to bail out the Auto Industry is that conservative misinformation?

        Report Abuse
        • Author by Conchobhar (December 04, 2008 2:06 pm ET)
             

          To coin a hoary old phrase, Even a stopped clock is right twice a day.  Buchanan's average isn't that good, but occasionally he nails one.

          Report Abuse
          • Author by Caseysprings (December 04, 2008 2:09 pm ET)
               

            I agree but he is right, we do need to bail them out. I loved Michael Moore last night on Olbermann he made some good points about what the Auto  industry

            Report Abuse
            • Author by Col. Harlan Sanders (December 04, 2008 2:24 pm ET)
                 

              Stay tuned...

              If I put a quarter into my disc drive, will I get the conclusion?

              Report Abuse
              • Author by mary59 (December 04, 2008 3:31 pm ET)
                   

                You will not get any thing, you hater. ;-)    ;-)   ;-)

                Report Abuse
              • Author by juliajayne (December 04, 2008 4:26 pm ET)
                   

                will I get the conclusion?

                You may get the conclusion with contradictions but no contractions.

                Report Abuse
                • Author by Col. Harlan Sanders (December 04, 2008 4:57 pm ET)
                     

                  Mary & JuliaJayne, I find it laughable that you do not realize that you are guilty of the same hate of which you accuse me. Do you not see that you prove my point? You are hateyfull scum and human trash.

                  I think I have made my point?????

                  Do you have a link to support your claims?

                  Thanks for the discussion. Have a nice day.

                  Report Abuse
                  • Author by mary59 (December 04, 2008 6:13 pm ET)
                       

                    That is hateyness to you, Mr. Colonel.

                    You have made a pointandsoIhavetooIthink.

                    Here is my link:

                    Have your day be merry and nice.

                    Report Abuse
      • Author by pete592 (December 04, 2008 2:06 pm ET)
           

        Just in case you're visiting MMFA again for the first time...

        They like to give props to media heads who finally get something right after MMFA has been hammering it home day after day.

        Report Abuse
      • Author by donaldmaddog5642 (December 04, 2008 2:23 pm ET)
           

        Shaggles, it is "a CORRECTIVE to conservative misinformation".  MMFA does it often.

        Report Abuse
      • Author by MiddleLeft (December 04, 2008 2:27 pm ET)
           

        how is this conservative misinformation?

        You may be interpreting the mission statement too literally.  The $73 dollar story IS the mis-information. The news that this misinformation has been recognized by the media is NEWS to the readers of this site.  And welcome it is.

        Report Abuse
        • Author by shaggles (December 04, 2008 2:47 pm ET)
             

          Yeah.  I probably am taking it too literally.  I don't see this here too often though.  I usually have to go to Crooks & Liars to read about the MSM actually getting something right.

          Report Abuse
    • Author by bobbynorwich (December 04, 2008 2:03 pm ET)
         

      What do you know, for once Scarborough gets something right.

      Report Abuse
      • Author by carlileb5935 (December 04, 2008 9:55 pm ET)
           

        After them all getting it wrong the last few weeks. Conspicuously missing was any reference to their own misquotes of this same figure.

        Report Abuse
    • Author by tgarcia6327 (December 04, 2008 3:00 pm ET)
         
      It’s quite obvious that the Republicans and right wing media want to demolish the US automakers as we know them today. What they would like more then anything is for these companies to be non-unionized. Since Republicans couldn’t smash the unions through traditional transparency, they have found a back door of opportunity with this bailout plan. I was watching CBS the other night, and they brought up the $70 number (which is WRONG) and compared it to the Japanese unionized workers salary which is $28. What CBS and the rest OF THE MEDIA haven't stated was in Japan, healthcare is provided by the government free of charge!
      Report Abuse
    • Author by jason10006 (December 04, 2008 3:15 pm ET)
         
      The story MM posts as proof of their point, http://biz.yahoo.com/ap/081119/fact_check_autos_labor_costs.html?.v=1 still shows that GM cars cost more to make than Japanese cars. And Japanese cars made in the US cost LESS to make than those in Japan, incredibly. So it does not matter how you catogorize the $69 per hour, which will go down to $62 per the article. Its still more than Toyata's $53 overall or its $46 in the U.S. Meaning Toyota, Honda, BMW, etc have more to spend on R&D, new factores, fancier features for the car, etc. GM is on s treadmill here, and their "plan" would still leave them uncompetitive in terms of labour costs ten years from now.
      Report Abuse
      • Author by eweston8542983 (December 05, 2008 12:09 pm ET)
           

        Dispite The lack of a union anchor on some companies, the industry average is -36.7%. Worst is Chrysler at -47%, Nissan-42.2%, GM -41.3%, Toyota-33.9%,Honda-31.6%,Ford-30.5%.

        GM does have some interesting things in their well documented (clogged) pipeline. One being the "Autonomy" 'flat-pack' chassis. Could be a very good product, at the mercy of the braintrust that has put them where they are today.

        Report Abuse
    • Author by jsantaularia795843 (December 04, 2008 3:53 pm ET)
         

      I have a j.d. and I make $16/hr in NYC. Even $18/hr base before benefits is entirely too much.

      Report Abuse
    • Author by fantagor (December 04, 2008 5:27 pm ET)
         
      Good for JS and co. Once in a while, the media gets it right. Sad that this is the exception, not the rule.

      Randy
      Report Abuse
    • Author by ajzito (December 04, 2008 10:08 pm ET)
         
      If we had a real national health care system, GM wouldn't have to bear the legacy health care costs alone. How much would that help them out? We'll never know, since they seem more intent on the 70 bucks an hour stunt than on real problem solving (the GM executives have probably forgotten how to distinguish a substantive problem from a marketing problem; somehow they think that bleating on about workers' pay is going to magically produce cars people will buy). National health care - the bail out for everyone.
      Report Abuse
    • Author by NiceguyEddie (December 05, 2008 12:15 pm ET)
         

      Scar is one of the least offensive conservative commentators out there.  If you eliminate everyone WORSE than him, MMFA wouldn't be nearly as interesting. 

      (And by "eliminate" I mean from consideration, not from the earth!)

      Report Abuse
    • Author by Great American (December 05, 2008 3:33 pm ET)
         

      Bye bye American auto makers.  And bye bye union works and your pathetic UAW!

      Report Abuse

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