Comments on: Let’s get this executive pay discussion over with

By: eggsngrits

eggsngrits — Wed, 03 Dec 2008 13:32:22 +0000

Paul: That cost has been specifically separated from the $77 per hour figure by the UAW for some time. The real numbers are higher.

Additionally, according to GM and UAW the pension plan is fully funded and has been handed to the UAW to manage. Any pension cuts from early this year forward would come at the hands of the union folks, not GM.

By: Paul Guinnessy

Paul Guinnessy — Wed, 03 Dec 2008 13:25:11 +0000

A reminder that the current GM workers support 4.5 retirees in health benefits and retirement pay, so what you are all calling for, is for the retirees to have their pension slashed by more than 40%.

I’m not disagreeing that there cost structure is high, but I do think there is an built in assumption here that its ok to halve pensioners pay. How would you like that to happen to you?

The cheapest way out of this mess might be for the US to bring about universal health care. That’s probably unlikely in the short term.

By: Arnold

Arnold — Wed, 03 Dec 2008 05:37:30 +0000

Good perspective eggsngrits.

By: Talonderiel

Talonderiel — Tue, 02 Dec 2008 21:01:06 +0000

I’m a complete novice to corporate law and bankruptcy laws…. But I still think the one benefit from Chapter 11 would be the shedding of the leeches of the UAW. I’m sure I’ll get blasted for this, but it is like most large political entities: The hardworking people that make-up the workforce aren’t the political leaders of the organization slowly driving their employers into the ground. I’m all for the worker but for the Union as a whole… I think they have seen their hay-day. Unions were great when the economy was thriving and the little man needed to be watched for, but at what point to we maintain this facade in tough times for a company?

By: Fredrik

Fredrik — Tue, 02 Dec 2008 20:58:23 +0000

Official statement from Fritz Henderson:
SAAB IS TO BE SOLD !!!

By: detroitsaab93

detroitsaab93 — Tue, 02 Dec 2008 20:52:26 +0000

Don’t forget the UAW job bank that pays laid off members for sitting around, playing board games and some community service work………What a waste!!!! Retiree pension and health benefits are another real problem that the Big 2.5 deal with that the others don’t.

By: eggsngrits

eggsngrits — Tue, 02 Dec 2008 20:34:03 +0000

Yes, the $77 per hour figure includes benefits. $30 per hour delta brings them to $47 per hour, which is about $8 higher than the average non-union auto worker salary.

This, of course, doesn’t do a thing about the suppliers that are all UAW, etc. The number is actually much bigger than $4.6 billion per year. But, hey, it’s a start.

By: Bernard

Bernard — Tue, 02 Dec 2008 19:55:15 +0000

Richard,

I believe that the $77 per hour includes benefits.

By: max

max — Tue, 02 Dec 2008 19:53:29 +0000

I can tell you in all honesty I don’t know of 1 Saab dealer in the US that would support keeping the Double Cheeseburger for $1.00 at the top of GM….at this point its all small fries…..

By: Richard

Richard — Tue, 02 Dec 2008 19:35:44 +0000

Really…? $77 an hour? I knew these unions were out of touch, but that is just ridiculous in the extreme. Stack on top of that the various benefits that GM pays out and I’m guessing the costs are closing in on $100 an hour. Point well made there EnG. There is the Big Three’s loss of advantage. And despite the fact that it is those well paid employees that do support the economy in part by consuming things, there’s going to be far less of them to continue consuming if a change of tack isn’t made very very soon on these sinking ships.

And I wholeheartedly agree that executive remuneration should be tied DIRECTLY to how well the company is performing. Which, in this case, should mean that Wagonner, Mulally and Nardelli should be PAYING OUT to continue captaining these companies.