Friday, September 27, 2019

9 working days with the union on strike has cost GM about a half a billion in profit. The result of this strike will be a 4 year contract, by the way


I hope the union carries on and gets all they can, it's not likely that they'll have another full force strike again in our lifetimes.

So, they better reach some arrangement that doesn't just bandaid over their complaints.

https://www.powernationtv.com/post/so-far-gm-has-lost-over-half-a-billion-dollars-over-the-strike

GM made an initial proposal to the union on Sept. 14 that included $7 billion in investment in eight U.S. plants and more than 5,400 additional jobs, most of which would be new hires. The automaker also offered 2% pay increases in two of the four years and a similar lump-sum payment in the other two -- smaller raises and payouts than what union members received in the expired contract. The company said it would keep health plans intact.

The union balked because GM’s proposal fell short in key areas. The raises were too small, and the offer didn’t include terms that its negotiators liked on use of temporary workers and the length of time it takes for shorter-tenured members to get to top-scale pay. Also, GM’s offer to invest in a union-represented battery plant in Lordstown, Ohio, came with a catch that wages would be paid much less than senior assembly workers.

https://www.bloomberg.com/news/articles/2019-09-25/gm-s-profit-lost-to-strike-tops-500-million-credit-suisse-says

Something I heard on the radio that easily balances the scales versus the average hourly wage of the blue collar workers, is the ridiculous paycheck the CEO and boardmembers make.

The CEO, makes 22 million fucking dollars a year. I'm guessing if the CEO made 1 million a year, and the other 21 million were reinvested in the company, to some relevant use, that CEO would still do just as good of a job. I've never understood why CEOs have to one up each other until their asking salary is more than the GDP of some states, countries, or regions of our planet.

The Board of Directors of GM https://www.gm.com/our-company/leadership/board-of-directors.html
isn't as easy to get info on how much GM pays them.
For example Wesley Bush, a boardmember of GM, is also CEO and Chairman of Northrup Grumman, where he makes 24 million a year
Linda Gooden is the boardmember of Univ of Maryland, and Home Depot, and retired from Lockheed Martin as exec VP
and Joseph Jimenez, CEO, Novartis
and Jane L. Mendillo retired President and CEO of Harvard Management Company

the next 4 highest paid members get a combined 22 million https://investor.gm.com/static-files/312bb301-09c1-4b9f-b350-e4ca82fbdec2  page 42

So, though it's not simple to find what the boardmembers get paid to run GM, it's easy to see they have a variety of experience running other corporations


https://investor.gm.com/static-files/312bb301-09c1-4b9f-b350-e4ca82fbdec2
https://www.gm.com/our-company/leadership/board-of-directors.html
https://www.bloomberg.com/news/features/2019-09-21/in-strike-at-gm-old-grievances-get-retooled-for-a-new-era

6 comments:

  1. I've never understood the amount CEO's, COO's etc. get paid in the automotive field. I think it was Bob Lutz who opined that the money needs to go to the people who bring value to the company, such as designers and engineers. As I recall Hyundai pays the head of its design department more than the CEO, and it shows in the fit, finish and the way the cars stand out.

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  2. I think the CEO before the current one, that ran GM in to bankruptcy, got paid 3X what the current chick is getting paid.
    the Obama administration was always complaining about women getting paid less than men, then hired and paid the new CEO chick a whole lot less than the guy that ruined it.

    this is also why EVERY new car factory has been built in the rural south, no unions.

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    Replies
    1. I hadn't even thought of that! Damn, that's quite astute! And yeah, the womens pay vs mens pay issue seriously has very little hard fact evidence, but the CEO to CEO pay of a replacement is an undeniable.
      And true, they only seem to make new production facilities in the south, but is there some thing that prevents the UAW from existing in the south?

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  3. The wage discrepancy has changed significantly over time. According to Forbes magazine - hardly a beacon of leftist journalism - in the 1950s the average CEO made 20 times the money of the average worker. In 2017 it was a staggering 361 times as much.

    I doubt it is because CEOs got 18 times smarter/more efficient over time....

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    Replies
    1. that's a fact. I made a note there in my post that CEOs seem to just be trying to one up each other, just like NFL players, NBA players, MLB players. They all have the notion that their income must be based on whatever the highest current rate is, well, that's the same as real estate and car auction prices too isn't it? Greed. It's universal.

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  4. Greed is also # 3 of the 7 deadly sins.

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