'You make almost $30M': General Motors boss sweats as interviewer comes out swinging
September 15, 2023
As United Auto Workers go on strike for fair wages, setting in motion a potentially huge disruption to the economy, their bosses find themselves under increasing pressure to explain why they can't give what the workers are asking — as General Motors CEO Mary Barra found out Friday.
"The union is demanding, asking, for a 40 percent wage increase over four years," said CNN's Vanessa Yurkevich. "They are asking for that in part because they say CEOs like yourself leading the Big Three are making those kinds of pay increases over the course of the last four years. You have seen a 34 percent pay increase in your salary, you make almost $30 million. Why should your workers not get the same type of pay increases that you are getting leading the company?"
"If you look at compensation, my compensation, 92 percent of it is based on performance of the company," said Barra. "Not only are we putting a 20 percent increase on the table, we have profit-sharing. So when the company does well, everyone does well."
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"For the last several years that resulted in record profit-sharing for our employees. You have to look at the whole compensation package, not only 20 percent increase in gross wage but also the profit-sharing aspect of it, world-class health care and several other features. So we think we have a very competitive offer on the table, and that's why we want to get back there and get this done."
"If you are getting a 34 percent pay increase over four years, and you are offering 20 percent to employees right now, do you think that's fair?" Yurkevich pressured her.
"Well, I think when you look at the overall structure and the fact that 92 percent is based on performance, and you look at what we have been doing of sharing in the profitability when the company does well, I think we have a very compelling offer on the table and that's the focus I have right now," said Barra.
"Let's talk about profits," said Yurkevich. "Because in 2009, GM filed for bankruptcy, was bailed out by the U.S. government, workers made concessions to keep their jobs, to keep the company alive. Why shouldn't workers be entitled to what they gave up 15 years ago, especially since GM is making record profits right now?
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"We have to remember we are a cyclical business ... no compensation system, I think, anywhere, is the same as it was, you know, 15, 20 years ago," said Barra. "So we have to look where we are. We have to look at the future. At General Motors, we want to recognize the hard work of our manufacturing employees. We have a historic deal on the table ... we want to, you know, finish the negotiations, problem-solve, and get people back to work."
Watch the video below or at the link here.
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