by Deb Cupples | Yahoo News tells us that the United Autoworkers Union is willing to make big concessions, largely to convince Congress that the union is serious about saving America's auto industry -- i.e., that we taxpayers won't be wasting our money if we further bail out the industry.
That's not surprising. Lower-paid workers usually do end up getting the short end. And yes, American autoworkers aren't all that well paid -- given the productive and dangerous nature of their jobs. (They average about $28 per hour, not the $70 per hour that some misleading media statements indicate).
Frankly, I'd like to see huge concessions on the part of the people who can afford to make them: executives and managers.
No, I don't have an ax to grind. I just have a basic grasp of numbers and arithmetic.
That and I'm a GM shareholder (albeit a small one), and I'm not happy that so many executives and managers habitually use shareholder dollars to plushly line their own pockets, instead of using that money to improve company health.
In short, executives have been redistributing shareholder wealth to themselves -- while the company headed toward a cliff -- and the executive-friendly board allowed them to do it.
For example, General Motors CEO Rick Wagoner's 2007 pay ($14 million) breaks down to $7,000 per hour (based on a 2000-hour year). Yes, you read that correctly -- and that was a year that GM had $38 billion in losses.
If the average autoworker makes $28 per hour, then Mr. Wagoner's hourly pay could have instead paid 250 average GM workers -- people directly involved in making products that make money for GM shareholders.
Ford CEO Alan Mulally's 2007 pay was $21 million, which amounts to $10,500 per hour. A year earlier, Ford had record losses of $12 billion. Mr. Mulally's hourly pay could have instead paid 375 average Ford workers.
It doesn't stop with CEOs. Four of Ford's vice presidents were paid $39 million in 2007, an average of $9.75 million each or $4,875 per hour. The total hourly pay of all four execs combined could have instead paid 696 average autoworkers.
I don't have access to compensation data for the dozens -- or hundreds -- of other execs at GM and Ford.
Still, I cringe as I imagine how many shareholder dollars have been funneled in their direction over the years, instead of being used to make the companies stronger.
Memeorandum has commentary.
Other Buck Naked Politics Posts:
* Media Mislead about Autoworkers' Salaries, Ignore Executive Pay
* Cutting Executive Pay Would Save Jobs
* Paulson's & Congress's Bailout "Mistakes"
* Beggars Can Be Choosers: Auto Execs Use Private Planes
* Senate Considers Auto Industry Bailout
* Execs Took Millions While Driving Companies into Ditch
* Lehman Execs Redistribute Shareholder Wealth (to Themselves)
Comments