UAW president says Big 3 should cut back on executive pay to get $25 billion loan

Posted: Dec 01, 2008
Filed under: Chrysler, Ford, GM, Industry News

No one seems to be happy with the Detroit’s Big 3 CEOS. Ron Gettlefinger, president of the UAW says that the Big 3 should tell Congress that they will cut back on corporate pay, bonuses and severance packages. Speaking on CNN’S “Late Edition” Gettlefinger said that automakers only need $25 billion in loans to help the over a tough period.

“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,” said Gettelfinger . “They can also give the government an equity stake in the business.”

Automakers have been under heat ever since their last visit to Washington after flying in on corporate jets to ask Congress for aide. Rick Wagoner, Alan Mulally, and Bob Nardelli will face the House and Senate Democratic leaders tomorrow where the companies will submit a “credible restructuring plan.” No word on how the three CEOs plan on getting to Washington.

Source: Reuters

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  5. Chrysler secures $2 billion loan, Daimler pays $1.5 billion of it

  • zermatt
    And what did Ron say about the UAW’s contribution towards cost reductions? Nothing?

    Just as I thought.

    Anyone that believes that $25 billion is going to be enough to help the “diminishing three” make it through this rough period is delusional. GM alone has been burning through cash at the rate of $2 to $5 billion a month. In a few months will the automakers and the UAW be back to ask for more?

    Let the automakers file for chapter 11 bankruptcy.
  • Bobmarley
    +1 zermatt

    let them file chapter 11...this is exactly the case that it was created for

    ...Im currious to see what the big 3 present to congress today. I look at this situation from an investors point of view and I think it is too risky especially when you are investing someone elses money
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