TO THE EDITOR:
When I hear the demands of the UAW in its negotiations with the Detroit 3 (“UAW to seek more than 40% wage gains from Detroit 3, sources say,” autonews.com, Aug. 3), it makes me wonder if Mr. Fain has any memory of the automotive bankruptcies almost 15 years ago. It sounds like he wants to set the companies on a path of a tremendous fixed- and legacy-cost burden that can bury a company as soon as profit margins deteriorate and send them back to those days.
Mr. Fain acts like UAW members have not shared in the profitable times of the Detroit 3. UAW members have received historically high profit-sharing checks.
Mr. Fain is asking for a 40 percent hike in pay for his UAW brethren because he says CEO pay has gone up 40 percent. Has CEO “pay” gone up or has CEO “compensation” gone up? There is a big difference. A chunk of CEO compensation is stock options that vary in value from day to day and has to vest over several years. Would the UAW consider a package for their membership that hinges on the company’s performance?
This might be more preferable than being stuck with a load of fixed costs.
MITCH MITCHELL, Executive director, Chrysler Minority Dealers Association, Troy, Mich.