Reply #6: GM could raise the price of each car it sells slightly and allow its workers more pay.

[4lbs]

GM sells about 8 million cars per year.

They have about 90,000 union workers making them.


So, raise the price per car by $100. At an average price point of about $20,000 per car, a $100 increase is a half-percent or less increase. Barely noticeable.

However, doing so will bring in an extra $800 million to GM.

Use that $800 million to give each of the 90,000 union workers an extra $4.00 per hour. That comes to an extra $8000 per year per worker.

90,000 union workers working 2000 hours per year (50 weeks at 40 hours per week) is 180 million hours of labor.

Divide $800 million by 180 million hours and you get about $4.44 per hour (4.444444 per hour to be exact).

Give the workers an extra $4.00 per hour, and GM can keep the 44 cents per hour (which amounts to about $79 million more in 'profit' for GM).