Shame on You, GM and the UAW

Originally promising production of 40,000 ventilators immediately, once the CARES Act was passed, GM decreased their offer of production to 6,000 ventilators in 6 weeks, also at increased prices. This is what caused the Trump administration to invoke the Defense Production Act (Hansen, 2020).

The CARES Act recently passed includes limitations on how much an employee or officer of a corporation or businesses requesting federal loans during this time can earn for the next 2 years (McConnell et al, 2020):

“SEC. 3103. LIMITATION ON CERTAIN EMPLOYEE COMPENSATION.

(a) IN GENERAL.—The Secretary may only enter into a loan or loan agreement under section 3102(a) with an eligible business after the eligible business enters into a legally binding agreement with the Secretary that, during the 2-year period beginning March 1, 2020, and ending March 1, 2022, no officer or employee of the eligible business whose total compensation exceeded $425,000 in calendar year 2019 (other than an employee whose compensation is determined through an existing collective bargaining agreement entered into prior to March 1, 2020)—

(1) will receive from the eligible business total compensation which exceeds, during any 12 consecutive months of such 2-year period, the total compensation received by the officer or employee from the eligible business in calendar year 2019; and

(2) will receive from the eligible business severance pay or other benefits upon termination of employment with the eligible business which exceeds twice the maximum total compensation received by the officer or employee from the eligible business in calendar year 2019.

(b) TOTAL COMPENSATION DEFINED.—In this section, the term “total compensation” includes salary, bonuses, awards of stock, and other financial benefits provided by an eligible business to an officer or employee of the eligible business.”

With this contingency stipulated within the CARES Act, big businesses with high-paid CEO’s like GM and Mary Barra are feeling the financial frustration of being ineligible for federal loan assistance during the Covid-19 crisis. In response, Barra, who usually earns well over $2 million a year, will take a pay cut of 1/3 for the next 6 months, while salaried superiors beneath her will take a pay cut of 1/4 and the remaining GM salaried employees will take a pay cut of 1/5 (LaReau, 2020). GM will also be withdrawing $16 billion from its available revolving credit as a precautionary measure to provide for additional flexible spending as needed.

Whether you like him or not, Donald Trump is a businessman and is a President who has donated his salary, in full, every quarter, to help meet specific American needs ever since he was inaugurated into office. For the fiscal year of 2019, his salary was distributed to the following with the intended utilization purposes:

4th Quarter: Department of Health and Human Services: Coronavirus (Wilkie, 2020).

3rd Quarter: Assistant Secretary of Health: Opioid Epidemic (Associate Press, 2019).

2nd Quarter: Surgeon General: Public Health Advisories (O'Donnell, 2019).

1st Quarter: Depart of Agriculture: Outreach Programs (Huberman, 2019).

During a time of dire American needs, it is no wonder why POTUS is upset that states and big businesses are begging for federal financial aid without first trying to help themselves. Surely, Mary Barra of GM and the likes do not need a salary of over $1 million to live comfortably and contribute to the country during a global crisis. Most would agree that GM has a moral, ethical and economical obligation to the American people, even more so to the people of Michigan, to do just that and step up to help. GM has all that they need to make it happen.

All the while, as reported by Fox 2 Detroit, small businesses here in Michigan, like Value Wholesale, are voluntarily re-purposing their warehouses for PPE production that they can donate. Healthcare workers are starting independent GoFundMe pages to raise their own funds to purchase much needed supplies. The Oakland Press is featuring stories of citizens sheltering in place at home sewing and donating face masks to medical facilities. While the big enterprises continue to waste time measuring the length of their bats, crossing T’s and dotting the I’s of contracts, it is the everyday average Jane’s and Joe’s that are stepping up to the plate swinging and keeping us going in the game of life.

As all of this transpired this week, it also comes as no surprise that UAW leader Rory Gamble secured legal representation and requested a meeting with federal officials to discuss the longstanding issue of corruption within the union, its labor leaders and their vendors (Snell & Howes, 2020). Currently, the last two Vice Presidents of the UAW have already been convicted. The last two Presidents that held the position prior to Gamble are now facing criminal charges. The purpose of meeting with federal officials, according to a UAW statement, is to request “technical assistance with our ethics and compliance reform efforts.”

Will corporate greed continue to roadblock the production and distribution of essential needs during the Covid-19 pandemic? Will the Governor of Michigan and the President of the United States continue to bicker about constituent responsibility and office accountability? I guess we shall wait and see what happens next week. One thing is for certain, big wheels keep on turning not only here in Michigan, but across the nation and around the entire world as we are all effected by this global pandemic.

My head and heart are with the Jane’s and Joe’s that are really putting in the footwork and effort to keep things rolling during this critical time. Also, with the decision makers, perhaps even some that have come to their days of reckoning. May light and love guide you to do what is right and not just what is profitable. While many people continue to suffer and die, most will survive to remember not the things you said, but your actions and what you did.

By: Amanda Spradlin Date: 03/28/2020 

References

Associated Press. (2019, November 26). Trump donates his 3rd-quarter salary to fight the opioid epidemic. Retrieved March 27, 2020, from https://www.pbs.org/newshour/politics/trump-donates-his-3rd-quarter-salary-to-fight-the-opioid-epidemic

Fox 2 Detroit. (2020, March 28). Detroit area doctors start GoFundMe account raising money for own supplies. Retrieved March 28, 2020, from https://www.fox2detroit.com/news/detroit-area-doctors-start-gofundme-account-raising-money-for-own-supplies

Fox 2 Detroit. (2020, March 28). Oak Park business using 3-D printers to make protective masks for medical workers. Retrieved March 28, 2020, from https://www.fox2detroit.com/news/oak-park-business-using-3-d-printers-to-make-protective-masks-for-medical-workers

Hansen, C. (2020, March 27). Trump Invokes Defense Production Act to Force GM to Manufacture Ventilators. Retrieved March 28, 2020, from https://www.usnews.com/news/national-news/articles/2020-03-27/trump-invokes-defense-production-act-to-force-gm-to-manufacture-ventilators-as-coronavirus-spreads

Huberman, B. (2019, December 13). Where Did President Trump Donate His Salary? Retrieved March 27, 2020, from https://www.snopes.com/news/2019/12/13/president-trump-salary-donation/

Joseph, G. (2020, March 25). Michiganders showing what they're made of during the coronavirus. Retrieved March 28, 2020, from https://www.theoaklandpress.com/news/coronavirus/michiganders-showing-what-they-re-made-of-during-the-coronavirus/article_e0d7c483-5f8c-54d3-acdf-50ab59f8dfcc.html

LaReau, J. L. (2020, March 26). GM salaried workforce must defer pay due to coronavirus impact. Retrieved March 28, 2020, from https://www.freep.com/story/money/cars/general-motors/2020/03/26/gm-salaried-workforce-must-take-pay-cut-due-coronavirus-impact/2921448001/

McConnell, Alexander, Crapo, Grassley, Rubio, Shelby, & Wicker. (2020, March 21). Text - S.3548 - 116th Congress (2019-2020): CARES Act. Retrieved March 27, 2020, from https://www.congress.gov/bill/116th-congress/senate-bill/3548/text#toc-idb797bc213c5140b9ada4942903cfcb61

O'Donnell, J. (2019, August 16). President Trump donates $100,000 of his salary to Surgeon General's office. Retrieved March 27, 2020, from https://www.usatoday.com/story/news/health/2019/08/16/president-trump-fund-surgeon-general-advisory-salary-donation/2030174001/

Snell, R., & Howes, D. (2020, March 27). UAW offers unprecedented meeting with feds amid corruption scandal. Retrieved March 28, 2020, from https://www.detroitnews.com/story/business/autos/2020/03/27/uaw-offers-unprecedented-meeting-feds-amid-corruption-scandal/2914913001/

Wilkie, C. (2020, March 3). Trump donates his 2019 fourth-quarter salary to help combat coronavirus. Retrieved March 27, 2020, from https://www.cnbc.com/2020/03/03/trump-donates-his-2019-q4-salary-to-help-combat-coronavirus.html