Post by Blitz on Sept 17, 2023 7:53:59 GMT -5
I think the auto workers have a good point when they say their salaries have not kept up with inflation, let alone their increased productivity. While on the other hand the big 3's CEO's compensation has far outpaced inflation. Mary Barra has a good point when she defends her compensation by saying when the company does better I do better because 92% of my compensation is based on GM's performance.
My position would be this... why doesn't labor get some similar compensation? Or, instead of stock buybacks, give labor a bonus when the company does well. Buybacks don't help labor but it does make the CEO's compensation go up too, if performance of the company is based on stock price. Lower wages also increase profits and that helps CEO compensation too.
And now this...
Core inflation averaged 2.76% per year between 2013 and 2023 (vs all-CPI inflation of 2.80%), for an inflation total of 31.24%.
$1,000 dollars in 2013 = $1,317.95 dollars today
www.in2013dollars.com/us/inflation/2013
If you adjust from 2008 to 2023 as some of the article's reference period you get this;
Value of $1,000 from 2008 to 2023
$1,000 in 2008 is equivalent in purchasing power to about $1,426.02 today, an increase of $426.02 over 15 years. The dollar had an average inflation rate of 2.39% per year between 2008 and today, producing a cumulative price increase of 42.60%.
This means that today's prices are 1.43 times as high as average prices since 2008, according to the Bureau of Labor Statistics consumer price index. A dollar today only buys 70.125% of what it could buy back then.
The inflation rate in 2008 was 3.84%. The current inflation rate compared to last year is now 3.67%. If this number holds, $1,000 today will be equivalent in buying power to $1,036.65 next year. The current inflation rate page gives more detail on the latest inflation rates.
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Productivity–Pay Tracker
Change 1979–2021:
Productivity +64.6%
Hourly pay +17.3%
Productivity has grown 3.7x as much as pay
www.epi.org/productivity-pay-gap/
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General Motors CEO Mary Barra tried to defend her $29 million paycheque as nearly 13,000 auto workers in the United States went on strike demanding better pay, pension, job protection and other benefits.
During her CNN appearance on Friday morning, Barra was asked why workers should not get the same kind of salary rise that she has received in the last few years. “You make almost $30 million; why should your workers not get the same type of pay increases that you’re getting leading the company?” asked CNN’s Vanessa Yurevich.
“My compensation, 92 percent of it, is based on performance of the company,” Barra said. “When the company does well, everyone does well.”
According to a report in The New Republic, Barra’s salary has increased 34 percent over the last four years. During the same time period, workers’ salary increased by only 6 percent.
Adjusting for inflation, autoworkers have seen their average wages fall 19.3% since 2008, according to Adam Hersh, senior economist at the left-leaning Economic Policy Institute. That's because autoworker "concessions made following the 2008 auto industry crisis were never reinstated," Hersh said in a recent blog post, "including a suspension of cost-of-living adjustments."
www.moneycontrol.com/news/trends/general-motors-ceo-tries-to-defend-29-million-salary-as-workers-go-on-strike-for-pay-raise-11379721.html
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The combined salaries for CEOs of the Big Three increased by 40 percent from 2013 to 2022, reported the Economic Policy Institute. A spokesperson for Ford told Newsweek via email on Thursday night that its CEO compensation increased by 21 percent from 2018 to 2022, the lowest among the top auto manufacturers. Farley was appointed head of the company in 2020.
www.cbsnews.com/news/how-much-do-uaw-workers-make/
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According to a report from NPR, General Motors CEO Mary Barra, the highest-paid executive among the Big Three car manufacturers, made nearly $29 million in 2022—roughly 362 times the average of company employees.
Farley's compensation was roughly 281 times more than the average in the same year. And Stellantis CEO Carlos Taveras, who made $24.8 million, is earning roughly 365 times above the employee average. The companies' ratios were reported by the U.S. Securities and Exchange Commission.
Ford made an offer earlier this month that included a 20 percent guaranteed combined wage increase for hourly employees and improved benefits over the life of an employee's contract. Stellantis offered a similar deal, with wages increasing 14.6 percent over a four-year contract.
General Motors' offer included a 20 percent wage increase over the contract life span, with 10 percent increases in the first year. The UAW has rejected offers from all three manufacturers, which were described by union President Shawn Fain as "deeply inadequate."
www.newsweek.com/uaw-rips-ford-ceos-21-million-compensation-strike-looms-1827204
My position would be this... why doesn't labor get some similar compensation? Or, instead of stock buybacks, give labor a bonus when the company does well. Buybacks don't help labor but it does make the CEO's compensation go up too, if performance of the company is based on stock price. Lower wages also increase profits and that helps CEO compensation too.
And now this...
Core inflation averaged 2.76% per year between 2013 and 2023 (vs all-CPI inflation of 2.80%), for an inflation total of 31.24%.
$1,000 dollars in 2013 = $1,317.95 dollars today
www.in2013dollars.com/us/inflation/2013
If you adjust from 2008 to 2023 as some of the article's reference period you get this;
Value of $1,000 from 2008 to 2023
$1,000 in 2008 is equivalent in purchasing power to about $1,426.02 today, an increase of $426.02 over 15 years. The dollar had an average inflation rate of 2.39% per year between 2008 and today, producing a cumulative price increase of 42.60%.
This means that today's prices are 1.43 times as high as average prices since 2008, according to the Bureau of Labor Statistics consumer price index. A dollar today only buys 70.125% of what it could buy back then.
The inflation rate in 2008 was 3.84%. The current inflation rate compared to last year is now 3.67%. If this number holds, $1,000 today will be equivalent in buying power to $1,036.65 next year. The current inflation rate page gives more detail on the latest inflation rates.
///////////////////////////
Productivity–Pay Tracker
Change 1979–2021:
Productivity +64.6%
Hourly pay +17.3%
Productivity has grown 3.7x as much as pay
www.epi.org/productivity-pay-gap/
///////////////////////////
General Motors CEO Mary Barra tried to defend her $29 million paycheque as nearly 13,000 auto workers in the United States went on strike demanding better pay, pension, job protection and other benefits.
During her CNN appearance on Friday morning, Barra was asked why workers should not get the same kind of salary rise that she has received in the last few years. “You make almost $30 million; why should your workers not get the same type of pay increases that you’re getting leading the company?” asked CNN’s Vanessa Yurevich.
“My compensation, 92 percent of it, is based on performance of the company,” Barra said. “When the company does well, everyone does well.”
According to a report in The New Republic, Barra’s salary has increased 34 percent over the last four years. During the same time period, workers’ salary increased by only 6 percent.
Adjusting for inflation, autoworkers have seen their average wages fall 19.3% since 2008, according to Adam Hersh, senior economist at the left-leaning Economic Policy Institute. That's because autoworker "concessions made following the 2008 auto industry crisis were never reinstated," Hersh said in a recent blog post, "including a suspension of cost-of-living adjustments."
www.moneycontrol.com/news/trends/general-motors-ceo-tries-to-defend-29-million-salary-as-workers-go-on-strike-for-pay-raise-11379721.html
//////////////////////////
The combined salaries for CEOs of the Big Three increased by 40 percent from 2013 to 2022, reported the Economic Policy Institute. A spokesperson for Ford told Newsweek via email on Thursday night that its CEO compensation increased by 21 percent from 2018 to 2022, the lowest among the top auto manufacturers. Farley was appointed head of the company in 2020.
www.cbsnews.com/news/how-much-do-uaw-workers-make/
/////////////////////////
According to a report from NPR, General Motors CEO Mary Barra, the highest-paid executive among the Big Three car manufacturers, made nearly $29 million in 2022—roughly 362 times the average of company employees.
Farley's compensation was roughly 281 times more than the average in the same year. And Stellantis CEO Carlos Taveras, who made $24.8 million, is earning roughly 365 times above the employee average. The companies' ratios were reported by the U.S. Securities and Exchange Commission.
Ford made an offer earlier this month that included a 20 percent guaranteed combined wage increase for hourly employees and improved benefits over the life of an employee's contract. Stellantis offered a similar deal, with wages increasing 14.6 percent over a four-year contract.
General Motors' offer included a 20 percent wage increase over the contract life span, with 10 percent increases in the first year. The UAW has rejected offers from all three manufacturers, which were described by union President Shawn Fain as "deeply inadequate."
www.newsweek.com/uaw-rips-ford-ceos-21-million-compensation-strike-looms-1827204