Wabtec Compensation vs $35 hourly Rates

Are you angry at Wabtec workers who earn $35 per hour? Before you write your letter to the editor, read this.

The Security and Exchange Commission requires compensation disclosure of all public companies. To quote their website: The Summary Compensation Table provides, in a single location, a comprehensive overview of a company’s executive pay practices. It sets out the total compensation paid to the company’s chief executive officer, chief financial officer and three other most highly compensated executive officers for the past three fiscal years. (https://www.sec.gov/fast-answers/answers-execomphtm.html).

Here is the 2018 compensation table for Wabtec:

Wabtec compensation chart

Feel free to peruse the report yourself. (https://www.sec.gov/Archives/edgar/data/943452/000114036119006593/ntp10000723x1_def14a.htm#tCDA) You may also view how much stock these individuals owned at year end, shareholders who owned more than 5% of Wabtec’s common stock as of March 22, 2019 (GE owns 25%), and a variety of other information.

So why are many residents siding with these executives rather than the $35-per-hour workers?

I believe Corporate America is pitting middle-class workers against each other. (Review the recent ad Wabtec took out in a local paper.)

But my friend, Dr. Nancy Hogan, professor at Ferris State, says it best. “The economy is driven by consumers—you and me—but the rhetoric that corporations are ‘job creators’ brainwashes everyone into believing we have to take a pay cut to ‘keep the jobs’. Show me one CEO who has taken a pay cut to help either the workers or the company.  Higher wages from unions raise the wages of non-unions. But the people side with those making 300+% more than the workers rather than workers who are a reflection of themselves.”

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Cyndie “CJ” Zahner has lived in the Erie community her entire life. She is a retired grant writer/administrator and now writes fiction novels. Her husband, brother-in-law, and nephew-in-law work at Wabtec. Her brother, Mike Filutze, is a GE retiree. Her father-in-law, Edwin Zahner, was a proud GE employee for thirty-seven years. Follow Cyndie on InstagramTwitterFacebookGoodreadsBookBubLinkedIn and purchase her books on Amazon. See her BookCircle Online interview here.

Entirely Justified?

In their own minds, CEOs and economic development leaders in Erie, Pennsylvania are entirely justified. They truly believe Wabtec workers should agree to two-tiered wages, mandatory overtime, reduced vacation, and flexible scheduling for the good of the company—for the good of the city.

But Erie’s little labor dispute is about more than them. It is about more than us—and I mean us in the sense that I am standing on the side of the union. (And I haven’t always done that in the past.)

If you think this is simply a labor dispute in our little town, you are dead wrong. This is about our country’s unions, the protection they provide to the middle class, whether they can continue to be an effective bargaining tool in the future, AND it is about middle-class America, itself.

Every political eye in the country knows us. And whether you know it or not, Erie is making a mark in history.

The political battle

With the number of electoral candidates soaring, you can be sure each and every presidential contender is watching the little Wabtec/UE Local 506 union negotiations. These people want our votes. They want the votes of millions of Americans like us.

But if they want mine, forget political parties and talk to me about the classes. We have rich, middle-class, and poor Republicans and Democrats. What will they do for the middle class?

Every politician says they will help us because they know if they don’t say that, they don’t have a chance in hell of being elected. So do they support organized labor? Yes or no.

There is good and bad to everything. You do not have to support union members who disparage workers entering a plant they strike against. You don’t even have to support strikes that halt production if you feel there are better bargaining tools. But you should  at least support and acknowledge that organized labor helped grow the middle class in the past and without it in the future, the middle class is sure to erode.

Before unions? Middle class workers had less fringe benefits (some had none) and less safety precautions. They worked longer hours for less pay.  Many fell prey to mandatory overtime and flexible schedules.

People say the workers at Wabtec WANT overtime, so what’s the big deal? Agreeing to work overtime to finish a product for your employer is NOT the same as being forced to do it. There is a huge difference.

Mandatory overtime

Gives an employer power over your life.

Flexible scheduling

Gives an employer power over your life.

Two-tier wages

Pushes future Erie middle-class workers down a few rungs of the ladder toward the working poor. Is that better than losing jobs?

I truly don’t know the answer to that.

That is the great debate in our little town. Residents volley opinions on whether or not we should agree to reducing $35 an hour jobs to $20.

But why is no one pointing a finger at top management?

Community support

While I understand opinions across the country vary, I find it hard to understand the jealousy of many middle-class workers within my own community—both blue- and white-collar workers AND Republicans and Democrats.

Nancy L. Hogan Ph.D., a professor at Ferris State University in Michigan, said it best: “The economy is driven by consumers…you and me…but the rhetoric that corporations are ‘job creators’ brainwashes everyone to believing we have to take a pay cut to ‘keep the jobs.’ Show me one CEO who has taken a pay cut to help either the workers or the company. Higher wages from unions raise the wages of non-unions. But the people side with those making 300 +% more than the workers, rather than workers who are a reflection of themselves.”

Dr. Hogan is correct. Middle-class workers are siding with the elite rather than those who are a reflection of themselves.

It never ceases to amaze me how people will defend immigrant’s rights, the rights of the unborn, and the rights of the protected classes, and yet ignore the basic rights of the middle-class worker.

Why aren’t we defending the middle class?

We should stop fighting amongst ourselves, rise up, and insist the rich make concessions.

Why don’t we? The media may be fueling the fire. Read UE Local 506 president Scott Slawson’s words in today’s Erie paper: https://www.goerie.com/news/20190502/wabtec-bosses-future-of-erie-plant-rides-on-2-tier-wages#.

Read Daniel Moore’s March 6, 2019 article in the Pittsburgh Post-Gazette. Referring to Erie, Moore wrote, “Over the last week, the company and the union escalated the strike’s public relations battle to win support from residents of Lawrence Park, an Erie County town of a few thousand people founded by GE Transportation in 1910.” (https://www.post-gazette.com/business/career-workplace/2019/03/06/Wabtec-GE-union-workers-contract-talks-labor-strike-manufacturing/stories/201903050026)

CEOs and Political leaders are working the media, including social media, to win support for themselves against organized labor.

Is organized labor bad?

For the middle class? No; absolutely not.

For wealthy owners of company’s and political leaders who receive campaign contributions from rich CEOs? (Take a look at past videos of election night celebrations for current political leaders. You may see a few familiar faces.) Absolutely.

Entirely justified?

Is their stand that Erie’s skilled labor should accept concessions justified?

I don’t know what is right or wrong anymore. But I do know one thing. Without labor unions of the past, our middle class would not be as strong as it is today. And in the future? I worry if the rich influence political leaders to break down organized labor, the middle class will erode.

You may not believe this but I often pray about my dumb little blog, and I don’t believe in coincidences.

This morning I finished reading The Great Gatsby. “Entirely justified” comes from its ending: “what he had done was, to him, entirely justified.”

The book is about social tragedy, defiled dreams of Americans, and the total disregard of the rich. The main characters, Tom and Daisy, are figurative. To me they represent the powerful and the wealthy: “They were careless people, Tom and Daisy—they smashed up things and creatures and then retreated back into their money or their vast carelessness, or whatever it was that kept them together and let other people clean up the mess they had made….”

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Cyndie “CJ” Zahner has lived in the Erie community her entire life. She is a retired grant writer/administrator, and now writes fiction novels. Her husband, brother-in-law, and nephew-in-law work at Wabtec. Her brother, Mike Filutze, is a GE retiree. Her father-in-law, Edwin Zahner, was a proud GE employee for thirty-seven years. Follow Cyndie on InstagramTwitterFacebookGoodreadsBookBubLinkedIn and purchase her books on Amazon. See her BookCircle Online interview here.

Support Erie & Have a Merry Read!

Need a last minute gift under $20? $15? How about under $4. Support your Erie Community. Stop at a local book store! Like Pressed Books.

Of course, I’d love you to buy my novels, but if you aren’t into thrillers, check out other Erie authors that Pressed flaunts. And bring your kids. They have a lovely reading area for children.

The last time I stepped into Pressed’s checkout line, three little girls and their mother were queued up in front of me. Each of the girls had their own money and paid for the books they purchased individually. The checkout was a slow process. Stepping up to a Pressed Bookscounter that towers over you alone took some time, not to mention counting dollar bills out, and change, too!

Annoyed? No way. I loved watching.

There is something about a book in hand in a child that sends a chill through me. The girls were excited for their purchase and so was I. So much so, that if any grandparents have grandchildren they need a last minute item for, I suggest they buy a big box and put a gift card to a local bookstore inside. Then take them after Christmas. Trust me–this gift is more for you than them.Pressed for kids.JPEG

And while you’re picking up those gift cards, can I interest you in The Suicide Gene under $20, Dream Wide Awake, under $15? (If you are more a kindle reader, they are available on Amazon at here  for under $3 & $6). Another author’s book?Or you may take a few moments to relax during the busy season for a great cup of coffee at Pressed, stop in at Pop Luck for some popcorn, or run over to Romolo’s for a shot of caffeine to keep you going.

Have yourself a Merry Read this Christmas!

_________________________________________                            Cyndie Zahner is the author of Dream Wide Awake, a paranormal novel that is totally fiction, but has been inspired by her own experiences. This is the first in a series of blogs about her inspiration behind the novel. Follow her on InstagramTwitterFacebookGoodreadsBookBubLinkedIn and purchase her books on Amazon.