Auto Industry To Add 60,000 Jobs Next Year

LIVONIA (WWJ) - The auto industry is in growth mode, with more jobs coming.

The Center for Auto Research said there will be 60,000 new auto jobs added next year, and 190,000 jobs added between now and 2015. Most of those jobs will be with auto suppliers.

Employment for the "Detroit Three" automakers of Ford, GM and Chrysler is becoming more consolidated here in Michigan.

"Right now 60 percent of all Detroit Three employment in the United States is in Michigan. Within four years, that's going to rise to 70 percent," said Sean McAlinden, chief economist for the Center for Auto Research. "Seven out of 10 jobs in the United States for those three companies will be on one state."

The year 2015 was chosen because that's the next round of negotiations between the United Auto Workers union and the three Detroit automakers. The Center for Auto Research holding a breakfast seminar at Schoolcraft College looking at the impact of the just negotiated contract, and looking forward to the next round of talks.

"I think the big issue in 2015 is going to be what happens to the so called 'second tier' of employees," said Art Schwartz, who served as GM's lead negotiator for many years, and is now an independent labor consultant.

Schwartz said that the union will be looking to win back more of the concessions that it gave up during the recession. But also said, if the industry remains profitable, rank and file workers will see significant profit sharing checks.

The two tier wage could be modified, Schwartz says, but probably will survive in one form or another.

"I think it will remain, but I think the UAW will try to close the gap."

Sean McAlinden saying that all three companies got what they needed from the 2011 talks, but Chrysler probably came out the best.

"Chrysler did make some progress toward getting what they needed, because they are a smaller company, which is very, very important to them. So, I give them the edge."