Many have criticized the United Auto Workers (UAW) union for helping to contribute to the 2008-2009 collapse of the auto industry in the United States. In a New York Times editorial, Andrew Ross Sorkin claimed that the average UAW worker was paid $70 per hour, including health and pension costs, while Toyota workers in the United States receive $10 to $20 less. These high wages he claimed were the main reason for the poor competitiveness of the United States auto industry.
Using a supply and demand graph, explain how unions such as the UAW are able to keep wages high. Do you think that higher wages do in fact contribute to the lack of competitiveness of U.S. products on average?

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The Answer of Many have criticized the United Auto Workers (UAW) union for helping to contribute to the 2008-2009 collapse of the auto industry in the United States. In a New York Times editorial, Andrew Ross Sorkin claimed that the average UAW worker was paid $70 per hour, including health and pension costs, while Toyota workers in the United States receive $10 to $20 less. These high wages he claimed were the main reason for the poor competitiveness of the United States auto industry.
Using a supply and demand graph, explain how unions such as the UAW are able to keep wages high. Do you think that higher wages do in fact contribute to the lack of competitiveness of U.S. products on average?

Many Have Criticized the United Auto Workers (UAW) Union for Helping