Union questions auto execs' pay packages

[Ramair-WS6]

http://www.usatoday.com/money/autos/...exec-pay_N.htm

By Sharon Silke Carty, USA TODAY
DETROIT — The United Auto Workers says it knows it needs to help Detroit's automakers cut labor costs to reduce the gap in production expenses with Asian rivals. But as talks continue on new contracts, the union also is questioning why top executives at the automakers are paid what they are.
"As much as workers do, workers can't do enough, and as much as executives get, they cannot get enough," UAW President Ron Gettelfinger said during last month's two-day strike against General Motors (GM).

[Chaz_23]

If they want US workers to get third-world-county-level pay, executives should be the first to take it themselves.

[K-1]

There was a phrase thrown around by UAW members here during the GM strike: "You're just jealous." Want comparable pay? Get your MBA and work yourself up the corporate ladder.

[2648562]

That's a valid question. Any idea how much Mr. Butterfingers and co. makes? My guess is it's far more than the blue collar guys slaving away on the line. And, like Bob Lutz, they probably only put in two or three hours of real work a week

[sigma]

Originally Posted by 2648562

That's a valid question. Any idea how much Mr. Butterfingers and co. makes? My guess is it's far more than the blue collar guys slaving away on the line. And, like Bob Lutz, they probably only put in two or three hours of real work a week

Executives are paid more because of the very important decisions that they are involved in. They are responsible for the protection, preservation and stregthening of a major assest; the corporation. I know its not an apples and apples comparison but its the reason an airline mechanic and pilot make more than a ticket agent or flight attendant.

Now, does this justify the massive increases in the wage disparities between the frontline workers or middle management and what executives make? No. The wage spread has gone from about 30x what the average employee makes (just 30 years ago) to almost 300x what the average employee makes. Has running a massive company really become more complicated by a maginitude of 10 in the past 30 years? I don't think so.

[tgferg67]

It's an apples to oranges argument of the UAW trying to point the finger to executives compensation as they have it pointed on them.

Executives pay is in-line with what other executives make throught the U.S. They need to address or point the finger at the "system" not specific executives of "one" company.

UAW labor rates are not in line with the average manufacturing labor rates throught the U.S. It is specific to the UAW so the finger can be pointed.

[Laffer98]

Perks upon perks

http://workspacekc.typepad.com/works...upon-perk.html

Organizations that advocate for a reduction in the growing wage gap between top executives and other workers note the irony of well-paid executives getting free benefits that other workers struggle to afford.

News of Gary Forsee’s multi-million dollar separation package from Sprint Nextel put the spotlight once again on executive pay and perks. He's leaving rich; the workers let go under his watch will have a bit more trouble paying their bills.

The here-we-go-again CEO pay example makes the newest executive compensation survey from Compdata Surveys quite timely. The 2007/2008 data, collected from 5,300 organizations covering nearly 26,000 executives, shows that business leaders are getting a lot of extra goodies in addition to hefty paychecks.

http://workspacekc.typepad.com/works...upon-perk.html

[Laffer98]

Executive Compensation

Kevin J. Murphy
Marshall School of Business
University of Southern California

"Organizational Behaviorists have focused on the potential political costs of wage disparities among the top management group and between executives and lower level workers. From an economic perspective, high pay disparity across hierarchical levels can strengthen incentives for employees in promotion tournaments (Lazear and Rosen, 1981). However, from a sociological and psychological perspective, perceived “pay inequities” lead to lower productivity and product quality, decreased employee morale, and increased turnover. Understanding the effects of pay inequities in organizations, and understanding more generally the role of politics in shaping compensation practices, seems a natural direction for future research in executive compensation."

[Don Willems]

Originally Posted by K-1

There was a phrase thrown around by UAW members here during the GM strike: "You're just jealous." Want comparable pay? Get your MBA and work yourself up the corporate ladder.

Hey knuckle-head, how many tanks were built by welders with MBA’s during world war 2?

[paul8488]

Originally Posted by Chaz_23

If they want US workers to get third-world-county-level pay, executives should be the first to take it themselves.

Who ever proposed thrid-world pay for US UAW members? HAs GM ever proposed such a thing? The deal they proposed to the UAW (and was approved) still has pay rates above the import manufacturers in the US. When ever did they say they wanted to pay a buck an hour?

[RamJet502]

More education and more responsibility = a bigger paycheck. That's the way it works.

[2648562]

Originally Posted by RamJet502

More education and more responsibility = a bigger paycheck. That's the way it works.

Yes, but don't think because you have an education you're automatically entitled to a bigger paycheck. It irritates the heck out of me that so many people will bitch and complain to no end that they can't find a job and they're so well educated... or that so and so makes more money than they do when they went to college...

Believe me, I know many supposedly well-educated bartenders that will probably never make more than $20,000 a year. And I've known/know some very rich junior high and high school drop-outs.

Bigger risks = bigger rewards.

[2648562]

Originally Posted by sigma

Executives are paid more because of the very important decisions that they are involved in. They are responsible for the protection, preservation and stregthening of a major assest; the corporation. I know its not an apples and apples comparison but its the reason an airline mechanic and pilot make more than a ticket agent or flight attendant.

Now, does this justify the massive increases in the wage disparities between the frontline workers or middle management and what executives make? No. The wage spread has gone from about 30x what the average employee makes (just 30 years ago) to almost 300x what the average employee makes. Has running a massive company really become more complicated by a maginitude of 10 in the past 30 years? I don't think so.

Those are some excellent points, but just so you know I was actually talking about Ron Gettelfinger. Hopefully I'm wrong and he's truly a stand-up guy, but my gut feeling is his salary's ridiculously high.