UAW wants bigger cut of Detroit's newfound profits

[ej510]

Source: AP

DETROIT (AP) — To help American carmakers stay in business, autoworkers grudgingly gave up pay raises and some benefits four years ago.

Now that General Motors, Ford and Chrysler are making money again, workers want compensation for their sacrifice. Just how much they get is the central question hanging over contract talks that start this week between Detroit and one of the nation's largest and most powerful unions.

The negotiations, the first since Chrysler and GM took government aid and emerged from bankruptcy, will set wages and benefits for 111,000 members of the United Auto Workers, including those at Ford, which avoided bankruptcy by taking out massive private loans. The UAW's four-year contracts with the Detroit Three expire on Sept. 14.

There's more at stake than pay. After the industry's brush with financial ruin in 2008 and 2009, both sides know how quickly Detroit's sales and profitability could vanish. Sales are on pace to reach nearly 13 million cars and trucks this year, better than the 10 million in 2009, but still below the 17 million peak in 2005. Americans are worried about buying cars when wages and the job market are weak. The workers and Detroit companies can't leave themselves vulnerable to rivals.

>snip

Workers want a bigger cut of the profits now that Detroit's automakers are making money again. They got profit-sharing checks in January, but they'll want bigger ones this year to offset the risk that they could nothing if the economy slows more and auto sales tank. They also resent the size of executive pay packages, particularly at Ford, where workers fume that Ford CEO Alan Mulally got $26.5 million for 2010.



Read more: http://www.google.com/hostednews/ap/article/ALeqM5gke40LBVXkDbOP7WwA1w0pkC9wcA?docId=7746ed03b2e44babae4e35e601c7fc87

[LiberalFighter]

1. Comparing sales in 2010 with sales in 2005?

Shows how incompetent Dee-Ann is as a reporter.

[LiberalFighter]

2. Would love to see wages and benefits based on what the jerks at the top receive.

They should negotiate that total wages and compensation for the top wage earner including compensation could not exceed 100 times average wages and compensation (40 hours) of hourly workers.

[melm00se]

16. CEO salaries

GM CEO Dan Akerson:

2010
Cash compensation:
$750K

Stock Awards:
$1.77 million (which are probably worth less now as GM's stock price is ~15%)

Chrysler CEO Sergio Marchionne
2010
Cash Compensation: $0

Stock Awards:
$600,000 stock award - for being a director on the company’s (Fiat) board

Ford CEO Alan Mulally (2009)
Cash compensation: $1.5MM
Stock options: $5,050,000 (strike price unknown)
Stock Awards: $10,974,782 (issue price is unknown)
(his stock awards are worth significantly more as Ford has gone from $7/share to over $13/share in the last 2 years.


These are all contained in the Proxy statements issued by each company

[DreamSmoker]

3. Workers should get compensated..

Not one number on how much money these Workers have sacrifice for the survival of these Companies.
It goes both ways..
Let alone throw out the fact that these Worker cash does not even come close to buying what it did just s few years ago..
Its quit obvious that Ford Execs have learned nothing and with those huge Bonuses will just continue Business as usual....
This story points this out clearly..
Of course Union Leaders want some of this Money for their workers...
And of course they will catch hell by the Media and Politicians....
What has the media or those folks done to make America a better place????
NADA......

[cstanleytech]

4. On one hand I can see why they would want more money on the other hand

there is a risk that their demands could cause a strain during a bad year.
My suggestion would be that they aim for a end of year bonus based on the companies profits for the year and maybe also push so that the executive pay (which should include any retirement or other compensation like future stock options for said executives) is linked into how good the company is doing.
That way the regular employees are treated the same as the executives pay wise in a way.

[bitchkitty]

5. I think bonuses in the millions

cause much more of a strain.

[cstanleytech]

6. If the company is doing bad ya

it would be a strain.

[hughee99]

7. Perhaps that money should go to taxes.

The government needs the money.

[Omaha Steve]

8. Workers pay taxes

And R's tell us that destroys jobs.

Well progressive Democrat workers do pay taxes.

K&R for the workers!

[hughee99]

14. We certainly do,

It just seems that when other industries have big profits, the "windfall profits" tax is suggested, but not in this case. Along those lines, former auto workers might benefit from the programs that these taxes would fund. Also good would be to see domestic plants expand or add shifts to benefit additional workers.

[bemildred]

15. And often a higher percentage than corporations.

Giving more money to workers is an excellent way to raise tax revenue without any "tax increases".

[Omaha Steve]

9. Dupe please just delete

Source: AP

By DEE-ANN DURBIN and TOM KRISHER

AUBURN HILLS, Mich. (AP) - To help American carmakers stay in business, autoworkers grudgingly gave up pay raises and some benefits four years ago.

Now that General Motors, Ford and Chrysler are making money again, workers want compensation for their sacrifice. Just how much they get is the central question hanging over contract talks that start this week between Detroit and one of the nation's largest and most powerful unions.

The negotiations, the first since Chrysler and GM took government aid and emerged from bankruptcy, will set wages and benefits for 111,000 members of the United Auto Workers, including those at Ford, which avoided bankruptcy by taking out massive private loans. The UAW's four-year contracts with the Detroit Three expire on Sept. 14.

There's more at stake than pay. After the industry's brush with financial ruin in 2008 and 2009, both sides know how quickly Detroit's sales and profitability could vanish. Sales are on pace to reach nearly 13 million cars and trucks this year, better than the 10 million in 2009, but still below the 17 million peak in 2005. Americans are worried about buying cars when wages and the job market are weak. The workers and Detroit companies can't leave themselves vulnerable to rivals.


Read more: http://apnews.excite.com/article/20110725/D9OMPQB02.html

---

In this June 9, 2011 file photo, line worker Cheryl Simpson moves a transmission from the assembly line to a pallet at the Ford Van Dyke Transmission Plant in Sterling Heights, Mich., Thursday, June 9, 2011. Now that General Motors, Ford and Chrysler are making money again, workers want compensation for their sacrifice. Just how much they get is the central question hanging over contract talks that start this week between Detroit and one of the nations largest and most powerful unions.(AP Photo/Carlos Osorio, file)

[yourout]

10. As they should.....they earned it.

[Cool Logic]

11. Shouldn't they pay the American People back first?

They still owe us billions...

[Omaha Steve]

12. Wall St got bailed out first

Shouldn't THEY pay us back first? Wall St handed out huge bonuses last year in case you missed it.

[Cool Logic]

13. Indeed, they should. I just didn't realize that this thread was about Wall St.

In any case, since everyone is doing it, it must be okay.