Missouri Workers Get Pink Slips While CEOs Get Raises

Press release from the Missouri AFL-CIO

Searchable Online Database Released by AFL-CIO Highlights CEO Compensation Compared to Average Worker Salaries

www.paywatch.org

Jefferson City, Missouri – April 19, 2011 – While the unemployment rate in Missouri hovers at 9.4 percent, and legislators consider bills attacking the rights and pay of private and public sector workers, numbers released today by Executive PayWatch (www.paywatch.org) show that Missouri-based chief executive officers haven’t had to worry about making ends meet.

D. N. Farr, CEO of Emerson Electric based in St. Louis, received over $24 million in total compensation in 2010 – 613 times more than what the average elementary school teacher in Missouri made in 2009.

And excessive CEO pay isn’t just limited to Missouri. Millions of Americans struggled to get back on their feet after the worst economic downturn in decades, yet CEOs of the nation’s largest companies got an average pay of $11.4 million in 2010 – a 23 percent increase in one year.

“CEOs making millions upon millions have been using their windfalls to fund politically motivated attacks in the Missouri legislature and in ballot initiatives. Working families lose time and again as politicians fail to stop the bleeding of Missouri jobs overseas and then turn around and cut unemployment insurance. The wealthy are getting richer at the expense of middle class – we’re seeing it at the state legislature in guise of bills like SB202, meant to silence workers voices in Jefferson City, and SB 1, right to work for less.” said Hugh McVey.

“CEOs here in Missouri are making millions while the state legislature is introducing bills benefiting millionaires and CEOs at the expense of average working Missourians. Doesn’t Senator Pro Tem Mayer think we should make sure corporate CEOs pay their fair share?” asked Joseph Feldmann, a sheet metal worker in St. Louis.

The release of the searchable online data bank is part of a broad campaign by the AFL-CIO to strengthen Wall Street reform, close corporate tax loopholes and ensure that poor and middle class Americans are no longer required to pay for the greed of corporate CEOs.

Executive PayWatch’s searchable data bank enables users to get information by state, industry and top-paid CEOs and compare the pay of top CEOs with the median pay of nurses, teachers, firefighters and other workers. For the first time, Facebook users will also have access to the information and to participate in the campaign.

The AFL-CIO’s CEO pay estimate is based on 299 companies in the S&P 500 Index whose executive compensation data is available for 2010. The 299 CEOs received a combined total of $3.4 billion in 2010, enough compensation to support 102,325 jobs paying median wages. The median wage for all occupations was $33,190 in 2009, according to the latest available data from the Bureau of Labor Statistics.

The Fox Guarding St. Louis's Henhouse

In the wake of the Post-Dispatch's shameful non-coverage of 4,300 union supporters rallying in Kiener Plaza, I want to return to a story that I meant to discuss in much greater detail a while ago. After Lee Enterprises bought the Post-Dispatch, they tried to persuade a number of employees to retire early. As part of this persuasion, they said, in writing, that they would provide free health care for life to the employees that accepted early retirement. However, despite Lee's continued profits, late last year they sent a letter to retirees informing them that they would no longer be paying for their health care. That, as you might imagine, had devastating effects for many retirees.

One such retiree is Fred Jackson, a man currently undergoing treatment for cancer. Lee Enterprise's greedy decision will quite literally bankrupt Mr. Jackson at a time he needs to pay for his treatment, but they simply do not care. Please take four minutes and watch the excellent video produced by Hotflash at Show Me Progress:

Just think about that for a second. The company managing the "paper of record" for the St. Louis region cares so little about humanity that they are willing to lie to cancer patients and then screw them over for the sake of a couple fractions of a percentage of extra profit. Lee Enterprises directly embodies the picture of corporate greed unburdened by an inkling of conscience. Can we really expect them to give fair coverage to workers fighting for a fair salary? Can we really think that they, when the chips are down, will provide unbiased coverage of a battle between corporate entities that share their exact same philosophy (profit! profit! profit! and screw the collateral damage!) and the middle class?

Increasingly, I think we can't. The Post-Dispatch has an excellent editorial board and many great employees, but their local political reporting has been going down the toilet and is doing so in a way that tips off the owners' allegiances. I really hope the Beacon, the Riverfront Times, and the St. Louis American can increasingly fill the giant gap left by the failure of the Post-Dispatch's political reporting. And I hope even more that citizens of St. Louis who believe in anything other than mindless, heartless, unwavering support for corporate profits will begin to create and distribute their own news, and cease to be dependent for their primary local news on an entity with so little respect for human life.

We will always fight for progress and reform, never tolerate injustice or corruption, always fight demagogues of all parties, always oppose privileged classes and public plunderers, never lack sympathy with the poor, always remain devoted to the public welfare, never be satisfied with merely printing news, always be drastically independent, never be afraid to attack wrong, whether by predatory plutocracy or predatory poverty.

-Joseph Pulitzer (though I first heard it from Sylvester Brown)