The UAW was founded for several reasons, but one of its biggest pillars is getting the best pay for its members. However, the UAW’s current president, Ron Gettelfinger, doesn’t necessarily believe that every employee of the automaker should be able to receive the highest salary possible, stating that executives should have a limit on pay.
Speaking on CNN‘s “Late Edition,” Gettelfinger said that executives of the automakers should give up pay in order to receive low-interest loans from the government. “They need to establish that executive compensation is something that they’re willing to curtail, as well as bonuses and ‘golden parachutes’ on exiting the business,” Gettelfinger said. “They can also give the government an equity stake in the business.”
Despite Gettelfinger’s willingness to limit executive pay, the union boss said the UAW will not be giving anymore concessions to ensure the automakers’ survival. Moreover, Gettelfinger is steadfast in his stance that the UAW had nothing to do with the Big Three’s current financial situation.
Although it’s hard to argue that executive bonuses at GM, Ford and Chrysler have been warranted, there is no denying that fact that UAW contracts have crippled the U.S. automakers over the years. The Big Three are simply saddled with burdens not present at foreign automakers, leading to a higher cost of operation. If the Detroit automakers are to continue well into the future, concessions will need to be made at all levels, not just the top.
