The New York Times answered a question I had regarding how much striking International Association of Machinists (IAM) workers will get paid during their strike. The answer is that after the first two weeks, IAM workers take a huge pay cut. And though Boeing Inc. (NYSE: BA) will lose $100 million a day during the strike, striking may be more painful for workers.
The Times reports that "if the strike goes on for more than two weeks, union members will begin drawing $150 a week in strike pay. The typical pay for a union member is $27 an hour, or about $56,000 a year before overtime and bonuses."
If my understanding is right, the workers get no pay during the first two weeks of the strike and then take an 86% cut from their normal pay each week thereafter -- excluding overtime and bonuses. (This assumes that they normally make $1,077 a week for 52 weeks a year and that the $150 a week strike pay is pretax). With the high cost of food and gasoline these days, that kind of pay cut is going to hurt IAM members.
Why is gold making a new high, trading at $1,118.00 per ounce?
Chasing Value: Ten stocks for 2010 -- Part 1 
Closing Bell: A six-day rally (AIG, REGN, M, MOT, PALM, RIMM)
