Effective and Personal Management Solutions

Managing Director Insights

Right and Wrong


Day 32 of the UAW Strike.

Last week the UAW shut down the Kentucky Truck Plant, Ford’s largest and most profitable facility.

The reasons:

CEO compensation

Corporate profits

Stock buy-backs, etc.

And just a general anger and distaste of billionaires and corporate greed.

Fain’s right.

Workers have not benefitted as executives have.

The disparity in CEO pay v. worker pay increases year, after year.

The games that CEOs play with stock programs in publicly traded companies doesn’t seem right to us mere mortals.

And billionaires?

Corporate governance of American companies is an opportunity for society to improve.

It’s sure different from those in Asia and Europe.

But Fain isn’t going to change all of these issues in one UAW negotiation.

Regardless of how much he manifests it.

And that’s where Fain is wrong.

He truly doesn’t understand why the companies haven’t met all of his demands.

They have a responsibility to their shareholders.

They are profitable with trucks and SUVs, but outside of these products they struggle.

And the move to electrification is not a fait accompli for success and profits.

Billions of investments at stake … technology … facilities … and hopefully … those vehicle sales will take off.

There are no guarantees here.

He wears a badge, “I didn’t want to strike, but I will”.

I don’t believe it as far as Fain goes.

He salivates at the idea of inflicting pain on these companies. The leaked emails are corroborating evidence here.

He is exhibiting sociopathic tendencies:

Attempting to control others with threats or aggression.

Using charm or wit to manipulate others for personal gain.

Lack of empathy for the other parties in this negotiation.

His passion for winning every single concession is preventing him from seeing the forest through the trees.

He won this thing.

But now, they have reached past the breakeven point for the UAW.
The $500 a week strike pay is not enough for his members to last indefinitely.

Workers at other OEM facilities are being laid off, and some who are not in the union will not be invited back.

The collateral damage is reverberating through the industry.

And he’s culpable here.

Any small concessions that the Detroit 3 may grant from here forth, are not worth the days out of work for his members or the industry.

Ford’s offer last week to the UAW was the same as it was two weeks ago.

If there are additional major concessions from the Detroit 3 because Fain refuses to budge, it’s only going to negatively impact the UAW down the road.

Every move has a counter-move.

Ask for 1 or 2 more reasonable concessions and make it a day.

Get everyone back to work.

Build on the wins and the momentum gained.

Start repairing the relationship with the OEMs … the companies who pay the bills.

But don’t destruct something, that you didn’t build all by yourself.

Building here at SCN – Search Consulting Network and hope you are as well!

Make it a great day!

Jim Guerrera

Author Info

Jim Guerrera

Jim Guerrera, Managing Director, founded SCN in 2000. Jim is primarily responsible for the development of the leaders at SCN, strategic planning, the hiring and development of company associates, culture leadership, core value leadership, sales le...

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