You can make all the arguments you want about the labor market for chief executives and their responsibility for billions in earnings. But major companies cannot expect average workers to accept that this is simply the way things are. Management and shareholders need to understand that the gross imbalance between CEOs and average workers is going to result in labor unrest.
in the New York Times: “Financial markets are acutely aware of the large-scale challenges facing the Detroit companies. General Motors’ stock price has been essentially flat since the company went public nearly 13 years ago, while the overall equity market has appreciated by 276 percent.” Again, if automakers’ CEOs cannot control foreign competition, they reach for something they think they can do: Hold the line on labor costs.
“Adjusting for inflation, autoworkers have seen their average wages fall 19.3% since 2008.” Autoworkers made concessions in 2008, including suspending cost-of-living increases; they say they have never recovered those givebacks.Meanwhile, Hollywood talent claims they have fallen far behind increases in the cost of living in pricey places such as Los Angeles, where much entertainment work still is based.
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Source: Reuters - 🏆 2. / 97 Read more »