|
Two-Tiers Plan Continues to Strangle American
Manufacturing Workers
By Bonnie Henthorn
12/31/05 "ICH" -- -- With the rash of corporate bankruptcies, labor
disputes and the unprecedented increases in corporate management
salaries, bonuses and fringes, profitable corporations are using the
same unfair, disrespectful and discriminatory practices to increase
their ever growing profits at the expense of the working class.
In a small town in West Virginia, PPG Industries, Inc., a
multi-million dollar, global corporation, has offered a two-tier pay
system to their 470+ union employees, asking them to ratify a
contract that knowingly creates a second “class” of worker with
different pay rates and benefits for all new employees. How is a
union to represent two classes of workers? They cannot and that is
what the company is banking on, the beginning of the end of this
local union.
ICWUC / UFCW Local 45C went to the picket lines in opposition of
this new wage plan on September 9th, 2005. The strikers vow to
protect the rights of all union members, not just those lucky enough
to already be an employee. The workers do not understand why there
is such drastic cost-cutting measures when, by the company’s own
admission, they have enjoyed record sales, quarter over quarter for
more than a year. This local union produces chlor-alkali chemicals,
among other chemicals, with these particular items having performed
well in past quarters.
PPG issued a press release April 21st, 2005 entitled: “Another
strong performance for PPG in 2005, says CEO” discussing last year’s
(2004) performance. It states: “PPG generated record sales of $9.5
billion in 2004, with net income up 38 percent…” (emphasis added).
The CEO predicted that PPG would see continued strength in the
company’s chlor-alkali business in 2005.
Another release entitled: “PPG Reports Adjusted Net Earnings Grow 56
Percent in First Quarter on 10-Percent Stronger Sales” discloses the
company’s 1st quarter of 2005 earnings as:
"Our sales in the first quarter were an all-time record for any
quarter, reflecting the continued growth in all segments of our
balanced business portfolio,” (emphasis added) said Raymond W.
LeBoeuf, Chairman.
It also states that “Chemicals sales increased $154 million, or 34
percent, on higher selling prices for chlor-alkali products, …”
“Operating earnings were up $114 million primarily because of higher
selling prices and improved volumes, which more than offset higher
energy costs and inflation.” “Our strong earnings performance
reflects the strength of our chlor-alkali business coupled with
improvements in glass” says LeBoeuf.
Again, a press release dated July 21st, 2005 entitled: “PPG Posts
Record Sales for Any Quarter; Net Income up 24 Percent in Second
Quarter” notes:
"We not only generated record sales for any quarter, we also enjoyed
one of our best quarterly earnings performances ever," (emphasis
added) said Charles E. Bunch, current Chairman and CEO. "While the
global economy shows signs of moderating, we see continued strength
in our coatings and chemicals segments, which achieved record sales
each of the past two quarters. (emphasis added) This measurable
proof validates our earnings growth strategies and positions PPG to
continue generating shareholder returns.”
It also said: “Chemicals sales increased $134 million, or 27
percent, on higher selling prices for chlor-alkali products, higher
volumes in optical and the impact of foreign currencies.”
“Record profits”, “best quarterly performances ever”, “net income up
38%”, “net income up 24%”, these are not the statements of a company
who needs to push drastic cost-cutting measures. From the sound of
the press being put out by the company, the chemicals sector is
performing well and this performance is expected to continue, why,
then the need for such drastic cost-cutting measures? The answer
lies in the trend of skyrocketing management salaries, as well as,
plain corporate greed.
A study featured in the Pittsburg Post-Gazette on Sunday, May 16,
2004, of Pittsburgh’s “fortunate 50” Executives shows that four of
PPG Industries, Inc.’s management received raises in pay, bonuses,
benefits, stock options, etc. ranging from 179% to 255% for the year
of 2003. Again, where is the need for cost-cutting measures?
Stockholders also have no reason to complain as the stock for PPG
Industries, Inc. has grown from $44.70 (on 9/2/02 at ratification of
the last work contract) to $70+ in the 1st quarter of 2005. The
stock has since receded somewhat due to energy costs and such, but
there is still no argument that the stock is in trouble or even
merely, holding its ground. Again, where is the need for
cost-cutting measures?
No, this attempt to implement a two-tier system is merely the
concoction of some high-priced lawyers who have devised a plan to
further exploit American workers. The company refuses to negotiate
the issue with the union after nearly four months of picketing and
insist on using shady tactics in court to win injunction after
injunction against the union as is typical in situations such as
this, with the judicial system not even questioning the issue of
whether the two parties are negotiating.
It is understandable and agreed that corporations are in the
business to make money. They are expected to do so. Ideally, the
more they make, the more secure a job, the better and more secure it
is for its workers and for the community. However, the scales
continue to be tilted against the American worker and for big-time
money and corporate greed.
Bonnie Henthorn (
henny@starband.net )
Translate
this page
(In accordance with Title 17
U.S.C. Section 107, this material is distributed without profit to
those who have expressed a prior interest in receiving the
included information for research and educational purposes.
Information Clearing House has no affiliation whatsoever with the
originator of this article nor is Information Clearing House
endorsed or sponsored by the originator.) |
