First off, please pull the union bullhorn out of your ass. I am sick and tired of hearing union mouthpieces talk about the problem being a few executives with million dollar salaries.
GM has a US unionized workforce of approximately 111000. That’s just US, just unionized people (Source). They make on average $27/hr, or $56160 a year if they work 40/week and NO OVERTIME (Source). I’m sure a lot take the overtime, because the three I know that work for GM local sure do.
So, 111000 people x 56160 = $6,216,000,000
Since most people don’t see numbers that big often, lets spell it out.
Six Billion, Two-hundred and sixteen-million dollars in unionized salary. And that’s not even counting health care, pension and other benefits.
The article I found from 1/06 has the CEO, Rick Wagoner, making 2.2 million, plus a bonus and “other compensation” of 2.6 million in 2004, as well as 400000 shares of stock. Sure, it’s a lot of money, but barely a drop in the bucket compared to what blue collar is costing GM. Even with high salaries there simply aren’t enough “superpowers” at GM to make it add up. Could management be cut? Sure. But it’s the the root of the problem.
Members of the board of directors receive $200,000 a year paid in cash and stock for their work, plus up to $30,000 for chairing a board committee or being a member of the audit committee. Again, simply not enough people to add up to anything like the unionized total.
So please, stop trying to blame management salaries for this problem.
Finally, the statement of “the company signed the contract” show’s exactly why GM will probably never recover. Unions managed to get these honeypot contracts back when the big three had no competition, and could afford to these contracts. But now unions refuse to give up anything from these old contracts without strikes and lawsuits, despite the fact that everyone knows GM/Ford will never be able to compete with Toyota/Honda without major changes.