Reply #52: it's a wag, but perhaps an underestimate [View All]

[hfojvt]

http://mjperry.blogspot.com/2007/07/uaw-pricing-themselves-out-of-market.html

In another article, the big three estimated costs at $70 an hour, but that included retirement and health care costs. That article also said that Ford was buying out workers, paying them half their current salary for four years and that that averaged $25-30,000. Since Ford was presumably buying out workers with 10-20 years at their plant, my estimate of $80,000 a year for a worker with 30 years at the plant does not sound far off. They said full pension after 30 years, but I am not sure what "full" means. Usually about 50% of final salary is typical, but is that a "full" pension?

One trouble is that if a person starts at age 20, they have 30 years in by age fifty and can retire, leaving the auto company to pay retirement benefits for 30 years if they live to be 80. Where I work, OTOH, you cannot collect until you are 60.