Pen Truth Contributor
The following is from an earlier blog posted on another site May 8, 2009.
We all know what the word value means. The word “Value” is in our face constantly, “Family Values”, “Christian Values”, “Excellent Value”, “Under Valued”, “Over Valued”, etc. The term value is thrown around like some grand ideal yet those that generally throw around this word have a perverted definition of the term.
Let us take a look at the idea of personal value. Everyone wants to be valued, to know their contribution is valued. This is a very human desire to want to have value, every man, woman and child desires this. When we feel that were not valued we become resentful. The perception that we are not valued causes us to end relationships, loose interest in our jobs and become disillusioned with our lives. Our world view is even skewed by our sense of value.
Three years ago a U.S. motor company which was seeing diminishing sales came to agreement with the UAW auto workers union to eliminate numerous jobs through various means. The business publications all hailed the profit saving move. This negotiation was to realize a savings of $400 million in the first year. Not three months later the top executives of this faltering company received $450 million in bonuses. The American public was told that the hundreds of jobs were eliminated to cut costs not further enrich the already wealthy.
Those savings and more were rewarded to executives for making the company more profitable, yet it is the union that keeps getting a bad rap for the motor company’s losses. Think about it this way; you hire a financial advisor to help you save more of your earnings. The financial adviser helps you save $10,000 the first year and then charges you $10,500 for that year’s effort. Kind of dumb wouldn’t you say?
We forget corporate executives do not own the companies; they are employees of that company. The board, made up of executives from other companies decides executive pay packages. Executives on boards deciding perverted sums of compensation knowing that executives on the boards of their employers will be deciding their obscene pay packages. Also kind of dumb wouldn’t you say?
In 2007 the top 500 CEOs earned an average of $12.5 million (2008 numbers are not in yet.) That year the average income was around $32 thousand. Divide 12500 by 32 and see how many average incomes these persons receives (Hint for the math challenged, about 390.) Each earns as much money as 390 average employees combined. The average UAW worker earns about $38 an hour in salary and benefits (entry level pay is $12 plus benefits.) The top 5 auto execs earned an average of $18.4 million or the pay of 233 UAW workers combined.
Unions are not to blame. U.S. auto executives earn many times more than their counterparts at foreign auto manufacturers and yet the foreign companies are more profitable. So where is the value in all of this you might ask? Precisely! I guess that as long as we have TV, Fast Food, a roof over our heads and a fat belly, we just won’t give a damn.
Maybe my next blog should be on the terms obscene and perverted.