Can Lear Bring Jobs Back To Detroit?

Autoparts supplier Lear Corporation LEA is urging United Auto Workers to agree to lower wages for bringing jobs from Mexico back to Detroit, according to a Wall Street Journal report.

"If a deal is struck, about 1,000 jobs initially could be filled at Motown parts facilities owned by a variety of suppliers, not just Lear," the WSJ quoted Lear CEO Matt Simoncini having said in an interview.

Related Link: "Compelling Buying Opportunity" In Auto Parts, UBS Claims

According to the report, since 2010, Lear's Mexican total hourly workforce has jumped 70 percent, and now sits at 46,600.

The report said, "Mr. Simoncini has met with UAW President Dennis Williams and other senior union negotiators, and Detroit Mayor Mike Duggan [...] The UAW and city officials confirmed the talks but declined to provide further details."

"Workers in Mexico are paid about $8 an hour, but if companies factor in the cost to ship parts to the U.S., offering a $10- to $12-an-hour salary to workers in Detroit would make the move viable," the report added.

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Posted In: Long IdeasNewsWall Street JournalContractsMarketsMediaTrading IdeasDennis WilliamsDetroitMatt SimonciniMexicoMike DugganUnited Auto WorkersWall Street Journal
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