Ford CEO Mulally's huge pay package draws the wrath of UAW leaders.
United Auto Workers President Bob King ripped into the pay package for Ford Motor Co. chief executive officer Alan Mulally, calling it “morally reprehensible.”
Speaking with reporters following the union’s bargaining convention, King also said he believed Mulally’s pay package was ill-advised.
“I like Alan Mulally. I think he’s done a terrific job,” stressed King, “but I don’t think any CEO is worth $300 million,” a reference to the estimated payout the Ford chief executive received in terms of stock and stock options recently reported to the Securities and Exchange Commission.
“I think it’s morally reprehensible,” King said. “There is still a lot of poverty in the world,” he said. “I don’t think it helps Ford either,” King said, adding “a lot of people” helped Ford recover as it earned more than $6 billion last year.
The attack on Mulally’s compensation came as a 2011Harris Poll EquiTrend study indicated Ford was the highest-ranked brand among American consumers dethroning Toyota, which fell all the way to fourth behind not only Ford but Japanese rival Honda.
King’s comment followed a long afternoon of discussion and debate in which Ford’s policies came under fire from local union leaders in Cleveland, Kansas City, Mo and Dearborn, MI. The UAW leaders, who were gathered to discuss bargaining strategy, scolded Ford’s management for not doing enough to save jobs in the U.S. and for keeping workers on temporary status for years on end.
“When Alan Mulally can make $54 million (in bonuses”), then temporary workers have the right to decent wages and benefits,” King said during the opening speech to the convention, which is held every four years before the UAW starts negotiations with General Motors, Ford and Chrysler.
“I know companies want to move to a temporary workforce,” said King.
Gary Walkowicz, bargaining chairman at the Ford Truck plant in Dearborn, Mi. said concessions by employees were instrumental in saving Ford from bankruptcy. “We need to get back every concession,” said Walkowicz.
Despite the tension evident in the hall during the union convention, King said he was “optimistic” about the negotiations.
For one thing the economic climate is a lot more positive than it was four years ago, he said.
“These are mature companies with a lot experience,” the long-time union leader added, stressing he wasn’t concerned about giving up the ability to strike GM or Chrysler under the terms of the federal bailout.
“I’d like to have the right to strike. What I’m looking for is some creative problem solving,” he said.
Posturing is a normal outcome of the union convention, but sources both inside the UAW and at the Detroit Big Three believe King’s approach will be to find a solution that both rewards workers for their sacrifice while still helping maintain the financial health of the automakers.
(Will the UAW focus on an expanded profit-sharing program? Click Here for that story.)
A Ford spokesman said the automaker has a solid relationship with the UAW and it is in the company’s best interest to continue working together.
The spokesman also said Mulally’s compensation reflected Ford’s goal of retaining a world-class CEO.