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1832 Members Locked Out
Local 1832 members at Peterbilt in Madison, Tennessee
are currently locked.Paccar Inc., the parent company
of Peterbilt, can be described as the highest quality, most profitable
truck manufacturer in North America and its conservative management team
does not expect to break that trend. The company has reported profits
every year for the last 62 years, in good times and bad. Company stockholders
have been the beneficiaries, receiving increases in the regular quarterly
dividend of 140% in the last six years as stockholders' equity continues
to grow year after year. The chart below shows revenue and after-tax profits
for the last four years.
1998
1999
2000 2001
Revenue (Billions) $7.89
$9.02
$7.90 $6.09
After-tax Profits (Millions) $416.80 $583.60
$441.80 $173.60
The conservative Pigott family owns between 10% and 16%
of the stock and exerts considerable managerial control. Four of the ten
Board members are company executives or family members, while the majority
of the Board is part of the Northwest corporate elite. Behind the company
is the Bank of America, one of the largest financial institutions in the
country and one of its largest stockholders.
Paccar was the second largest producer of Class 8 trucks
in North America in 2001, with 24.5% of the market. They are not doing
so bad this year either. The company reported third-quarter net profits
of $128.9 million, three times that of a year ago and net sales of $2
billion, which represents a 33% increase above that of a year ago. Earnings
per share of $1.11, was 35 cents higher than analysts' expectations.
The company executives are doing well with salaries in the millions of
dollars. The top five executives combined enjoy salaries in excess of
$8.1 million. Obviously, this is not counting the millions of dollars
in stock options, to be cashed at a later date. The chart below shows
some of the executives' salaries in 2001.
Mark Pigott, CEO $2.9 million: 66.4% increase from 2000
David Hovind, President $1.8 million: 33.2% increase from 2000
Mike Tembreull, Vice Chair $1.8 million: 33.0% increase from 2000
While profits continue to be high and the executives continue
to enjoy their high salaries, the majority of the workers at the Peterbilt
plant in Madison, Tennessee are forced to survive on state unemployment
benefits of $275 per week, as they remained locked out of their jobs.
UAW Local 1832 and the International Union began negotiations on July
22, 2002. The Union had 14 non-economic proposals; the Company had 87.
The proposals presented by the Company reflected drastic reductions in
almost every area of the Agreement. |
