2023 Auto Strike

[Fanatical Meat]

I don’t have a lot to say other than a brief video I saw part of an interview with Chevrolet CEO Mary Barra the question asked was you’ve offered approximately a 20% pay increase for union workers over a 5(?) year period. You have increased your pay be 34% over the last 4(?) years.
Her answer: My compensation is 92% performance based we need to look at the total compensation package….bunch of words…. Profit sharing and that’s why 20% is a great offer.
Reporter: you have had a 34% increase and workers get a 20% increase is that fair?
Mary Barra: *I can’t remember but it’s basically a repeat of what was previously said*

I so want to be a Union Employee.

Also I would have like the reporter to ask “you said your pay is performance based does that mean you do not get ANY benefits or profit sharing?”

I’d link it but it’s one of those shitty links where the top video shows and it will change.

 

[Mai72]

The one thing that the UAW wants, and will be interesting to see if they are actually able to get, is a reinstation on pensions. Pensions are just not feasible in today's economic climate and will surely bankrupt automakers. Its why the big 3 automakers got out of pensions and introduced the 401k. Its just too costly to give retirees benefits and a paycheck for life. Especially when people are living much longer today than they did in the past when pensions were the norm. Even among the public sector teachers, [police, fire, public works) pensions are under increasing scrunity. And, that is because states are unable to meet the demands of baby boomers who worked public sector jobs for 25 plus years and are on the verge of retirement. The honest truith: The money just isn't there. I live in NJ. Its estimated that there is about .41 censt on every dollar of pension retirement funding for every retiree. The money is bound to disappear. And so, what will these states do to shore up the funding? Probably raise taxes. Its not just NJ, but every state in America. Some states are better than others, but the truth is the money just isn't there. Back to the UAW and their demand for pension reinstatement. The big 3 automakers aren't going to go for it. Its just not feasible, and if they do go for this demand, I believe the big 3 will leave America for good. They won't have no choice, and will be forced to leave America so they can make profit off cheap labor.

If you'd like you can watch the video with Edward Siedel (pension auditor) on why "the Pension Crisis" is so much worse than we realized. I do believe it's releated to this topic.

 

[Fenixgoon]

I've read a few articles now that talk about the UAW demands being outlandish.

First, I don't necessarily agree. In the 21st century, why are people working 5 days a week barely able to make ends meet in the wealthiest country on the planet?

But more importantly - negotiations only go down. You never open with what you're willing to accept. So of course you start with ambitious terms.

 

[nOOky]

My understanding is that workers want way too much, but you always start out high hoping to meet in the middle. Corporate apparently made around 20 billion in profit among the big three, but they don't really want to share any of that with the workers because management can hardly afford gas as it is with those huge salaries. The comments I'm seeing from conservatives are that the workers are outrageous nuts for wanting wage increases, someone needs to think of all the corporate VP's and such. Maybe a tax cut for the automakers so they don't leave the US?

 

[BoomerD]

The one thing that the UAW wants, and will be interesting to see if they are actually able to get, is a reinstation on pensions. Pensions are just not feasible in today's economic climate and will surely bankrupt automakers. Its why the big 3 automakers got out of pensions and introduced the 401k. Its just too costly to give retirees benefits and a paycheck for life. Especially when people are living much longer today than they did in the past when pensions were the norm. Even among the public sector teachers, [police, fire, public works) pensions are under increasing scrunity. And, that is because states are unable to meet the demands of baby boomers who worked public sector jobs for 25 plus years and are on the verge of retirement. The honest truith: The money just isn't there. I live in NJ. Its estimated that there is about .41 censt on every dollar of pension retirement funding for every retiree. The money is bound to disappear. And so, what will these states do to shore up the funding? Probably raise taxes. Its not just NJ, but every state in America. Some states are better than others, but the truth is the money just isn't there. Back to the UAW and their demand for pension reinstatement. The big 3 automakers aren't going to go for it. Its just not feasible, and if they do go for this demand, I believe the big 3 will leave America for good. They won't have no choice, and will be forced to leave America so they can make profit off cheap labor.

If you'd like you can watch the video with Edward Siedel (pension auditor) on why "the Pension Crisis" is so much worse than we realized. I do believe it's releated to this topic.

You act like pensions are "free money." Workers make wage concessions with their employers to get pensions. "We want a $2.00/hour raise, but we'll accept a $0.75/hour raise and $1.00/hour increase to our pensions."
As a union crane and equipment operator, I dealt with this crap for decades. If the employers don't want to be on the hook for pensions, they should quit promising them...and quit spending the pension fund $$$.

 

[Fanatical Meat]

My understanding is that workers want way too much, but you always start out high hoping to meet in the middle. Corporate apparently made around 20 billion in profit among the big three, but they don't really want to share any of that with the workers because management can hardly afford gas as it is with those huge salaries. The comments I'm seeing from conservatives are that the workers are outrageous nuts for wanting wage increases, someone needs to think of all the corporate VP's and such. Maybe a tax cut for the automakers so they don't leave the US?

I thought that too however my earlier point still stands. Ford’s CEO took a 40% pay increase, GM’s CEO took a 34% pay increase and union folks are supposed to be happy with a 20% increase over four or five years.
The money is there, when put into scale what they’re asking isn’t unreasonable.
While the CEOs are claiming the company is on the edge of bankruptcy it simply doesn’t appear that way and if they are why is their pay and the boards pay increasing so much?

 

[dainthomas]

I've read a few articles now that talk about the UAW demands being outlandish.

First, I don't necessarily agree. In the 21st century, why are people working 5 days a week barely able to make ends meet in the wealthiest country on the planet?

But more importantly - negotiations only go down. You never open with what you're willing to accept. So of course you start with ambitious terms.

Of course the corporate media always says that.

4% a year is basically a minimum.

 

[HomerJS]

Just a comparison...

In 1965, CEOs typically earned 20 times the typical worker's pay in their industries, according to a report from the left-leaning Economic Policy Institute (EPI).

But executive compensation soared, especially in the 1980s and 1990s, when CEOs were lionized and a large chunk of their pay was linked to their company's stock performance. CEO pay skyrocketed along with the stock market, with the S&P 500 increasing by more than 1,000% since 1990. In the same period, workers' wages, adjusted for inflation, have barely budged.

In 2021, CEOs earned 399 times the typical worker, the EPI report found.

"Obviously, CEOs should be the highest-paid person in an enterprise," said EPI Chief Economist Josh Bivens, who co-wrote the report. "But the question is, how much higher than everyone else?"

 

[Jaskalas]

The one thing that the UAW wants, and will be interesting to see if they are actually able to get, is a reinstation on pensions.

They demand a pyramid scheme?
Infinite growth is not wisdom, it is suicide.

All such notions of retirement must be replaced with a sustainable Basic Income.
Not some limited scheme predicated on a single company ensuring unending growth.

 

[Fanatical Meat]

They demand a pyramid scheme?
Infinite growth is not wisdom, it is suicide.

All such notions of retirement must be replaced with a sustainable Basic Income.
Not some limited scheme predicated on a single company ensuring unending growth.

Fair enough since universal basic income is not available seems wise to me to angle for a retirement guarantee. Should the union folks just hope a universal basic income will appear?

 

[HomerJS]

Anyone besides me think the widening income gap starting at the same time of the 401K inception isn't a coincidence?

 

[Fanatical Meat]

Anyone besides me think the widening income gap starting at the same time of the 401K inception isn't a coincidence?

Nope you’re not alone

 

[repoman0]

The optics of these CEOs staggering pay increases vastly outstripping the “generous” offer to the workers who make the company run are just terrible. What do these people even do with $25 million every single year? A pretty easy way to at least appear to be negotiating in good faith would be to voluntarily take less money and say you’re putting it towards workers. $5M / year still would mean they earn more than 99% of people’s lifetime earnings … every single year.

As soon as I hit somewhere in the $6-8M net worth range I’m out and that will provide more than I’d know how to responsibly spend in my VHCOL area.

 

[Fanatical Meat]

The optics of these CEOs staggering pay increases vastly outstripping the “generous” offer to the workers who make the company run are just terrible. What do these people even do with $25 million every single year? A pretty easy way to at least appear to be negotiating in good faith would be to voluntarily take less money and say you’re putting it towards workers. $5M / year still would mean they earn more than 99% of people’s lifetime earnings … every single year.

As soon as I hit somewhere in the $6-8M net worth range I’m out and that will provide more than I’d know how to responsibly spend in my VHCOL area.

I’ve said this for DECADES.

 

[brycejones]

Anyone besides me think the widening income gap starting at the same time of the 401K inception isn't a coincidence?

Nope, it's certainly a factor. I read many years ago that to be a decent replacement for defined benefit pensions companies would need to contribute 13% to 401ks. VERY few companies do this.

 

[nakedfrog]

They demand a pyramid scheme?
Infinite growth is not wisdom, it is suicide.

All such notions of retirement must be replaced with a sustainable Basic Income.
Not some limited scheme predicated on a single company ensuring unending growth.

On the one hand, you're right, on the other hand, "die, marxist scum!"

 

[nOOky]

So tiring of listening to the conservative working class people defending the executives and corporations instead of the workers being taking advantage of. "The executives are the ones taking all of the risk!".

This is literally one of the best examples lately, beside John Deere, where the workers can prove the company made a shit ton of money, the executives took the majority of it and yet claim they can't afford to pay the workers any more.

 

[Dave_5k]

While a guaranteed old-style % of top salary defined benefit pension for life isn't economically feasible, a defined contribution plan, with the company contributing say 6+% per year ultimately payable as a lump sum (or annuity) at retirement, along with a 6+% 401k match, is certainly doable for these companies.

And all of the executive compensation packages are out of this world, not just the CEO. How are those poor executive vice presidents getting by on a meager $10 million per year...

 

[GodisanAtheist]

The mental shorthand I always like to use:

If the CEO disappeared tomorrow, what would happen? The company would keep functioning as normal for about 6 months to a year, if not longer.

If all the workers disappeared tomorrow, what would happen? The company would stop functioning immediately.

Who is more important?

 

[Fanatical Meat]

If it were I negotiating this deal I’d set a reasonable floor like 4% then tie the true rate to CEO comp as in your goal for your target compensation is 15 million Mr/Mrs CEO. Whatever percent over you are is obviously due to exceptional performance. Our rate will reflect the percentage you are over goal. Company is an inverted pyramid right so if you’re successful everyone else is successful.
Easy to explain to press and shit heads too.

 

[A///]

Union workers in the auto industry among others routinely get shafted by higher ups. Same people and those on the right incapable of using the squishy shit in their skulls want to bust unions. They will then bitch years down the line about how come there's no worker protections and crap salaries.

If anything the US needs stronger unions.

As soon as I hit somewhere in the $6-8M net worth range I’m out and that will provide more than I’d know how to responsibly spend in my VHCOL area.

You could live off the interest on that and returns from investments. Similarly I don't get this fascination some wealthy people at the top have with being more and more rich. Look at Musk. Wealthiest guy around. Massive miserable twat.

 

[iRONic]

Hmmm, both Louisville Ford plants are up and running today, tomorrow, and in the foreseeable future according to my local peeps who work at both of them.

 

[Fanatical Meat]

Hmmm, both Louisville Ford plants are up and running today, tomorrow, and in the foreseeable future according to my local peeps who work at both of them.

They’re doing a target strike I forgot the term but it’s a new idea basically the critical people as in the folks who make parts to feed to lines do the strike and they increase the amount as needed.
Benefit is they don’t have to spend as much to compensate members and they don’t cause immediate havoc with the car industry thus ruining their reputation

Edit: link

https://www.cnn.com/2023/09/15/business/shawn-fain-uaw-strategy/index.html

 

[Puffnstuff]

When the managers don't budge expect the UAW to expand the strike. Ford has a tremendous supply of F150's sitting on dealer lots right now because they cost too much for normal people to afford.

 

[BoomerD]

Won't someone please think of those poor overworked corporate officers?

Trucker Yellow Paid Executives Millions Just Before Bankruptcy

Just weeks before closing its doors and dismissing thousands of employees, Yellow Corp. doled out millions of dollars in bonuses to executives so they wouldn’t leave the trucking firm during its chaotic unraveling, court papers show.

www.bloomberg.com

Just weeks before closing its doors and dismissing thousands of employees, Yellow Corp. doled out millions of dollars in bonuses to executives so they wouldn’t leave the trucking firm during its chaotic unraveling, court papers show.

Yellow paid bonuses totaling about $4.6 million to eight current and two former executives in the weeks before the company went bankrupt with plans to liquidate, according to corporate disclosures in Delaware bankruptcy court. The figure is higher than it would have been had Yellow managed to avoid a sudden bankruptcy filing, according to a person familiar with the matter.

Of the bonuses disbursed, nearly $2 million paid on July 14 were approved by Yellow’s board in June — when the company was in trouble, but before it was considering filing for bankruptcy, according to the person. Yellow’s public feud with a union representing much of its workforce escalated days later when a strike notice prompted the company’s customers to take their business elsewhere, Yellow has said.


The remaining bonuses paid on July 31 became necessary, then, as Yellow planned for a bankruptcy filing that would be used to repay creditors and wind down, according to the person, who asked not to be named discussing private deliberations. The company’s fleet of trailers, trucking terminals and other assets — all of which would need to be sold quickly and at the highest prices possible — had previously been valued at roughly $2.1 billion. A fire sale could seriously reduce the prices they fetched.

So-called retention bonuses are common in major restructurings, as they incentivize employees to stick around and help clean up failed firms. It’s less common to pay them prior to a bankruptcy filing when, as with Yellow, the company in question is shutting down for good.

The bonuses underscore an unintuitive logic that shows itself time and again when corporations fail: the executives who lead companies to bankruptcy are often the people best equipped to help repay their debts, if only because of the institutional knowledge they possess. Creditors, lower-level employees and even regulators frequently attack retention bonuses as unfair or unnecessary, but federal judges and restructuring advisers routinely find they help creditors hurt by bankruptcy recoup more than they otherwise would.

The July payments include a $1 million retention bonus to Yellow Chief Restructuring Officer Matthew Doheny, $1.08 million to Chief Operating Officer Darrel Harris and $625,000 to Chief Executive Officer Darren Hawkins, according to a company court filing.


Yellow also said it paid retention bonuses totaling roughly $249,000 to its former chief commercial officer and $23,000 to its former senior vice president of human resources. The company paid those bonuses because when it filed bankruptcy it explored the possibility of selling its logistics business as a going concern rather than shutting it down, the person said, but key lenders didn’t support that idea. The bonus payments were therefore used to offset severance payments totaling about $306,000 and $296,000, respectively, the person said.

Yellow didn’t return a message seeking comment. Doheny, Harris and Hawkins didn’t respond to LinkedIn messages seeking comment.

Sean O’Brien, general president of the International Brotherhood of Teamsters, said in a statement that the bonuses should be addressed by Congressional reforms “that workers in this country desperately need.” O’Brien criticized Yellow for making the payments while it skipped paying for employee benefits.

Congress in 2005 restricted companies from paying executive retention bonuses in Chapter 11, prompting companies to pay such awards before filing bankruptcy. There have been calls to curb such pre-bankruptcy bonuses in recent years. In 2021, the Government Accountability Office recommended that Congress require court oversight of executive retention bonuses after more than two hundred executives received around $165 million before their companies filed for bankruptcy.