US manufacturing is competing by trimming workers and wages

February 15, 2008
US manufacturing is competing by trimming workers and wages

A new round of cutbacks by Detroit's automakers carries a larger message – that America's manufacturing workers are under new pressure in jobs where labor unions had once been able to command middle-class wages for assembly-line jobs.

The point was punctuated this week as General Motors announced the largest ever annual loss by a maker of automobiles. In a bid to restore profitability, GM said it would offer incentives to convince older, highly paid assembly workers to retire early. Ford and Chrysler are pursuing similar worker buyouts.