By John Q. Hosedrinker The irony of GM’s profit nearing record highs a year after claiming it couldn’t afford to meet its workers’ pay demands seems almost comical at first glance, but beneath that surface is a grim reality that speaks volumes about the state of corporate America. I find myself reflecting on how often I’ve encountered this narrative, where companies cry poverty just as they are about to close negotiations that could lead to meaningful improvements for their employees. It’s a playbook that’s become all too familiar over the years.
When GM executives, led by CFO Paul Jacobson, proclaim about the strong revenue growth and profitable operations while simultaneously refusing to uplift workers’ wages, I can’t help but feel a knot in my stomach. They’ve managed to keep their profits soaring while maintaining a façade of fiscal responsibility that excludes those who actually drive the company forward: the workers. The blatant dissonance here is staggering. Just look at the numbers – billions in profits and millions spent on stock buybacks and dividends, yet the very people who produce and support those profits are left wondering how to make ends meet.
What strikes me even more is the cyclical nature of corporate greed. Each year, we see companies announcing record profits while simultaneously issuing layoffs or slashing raises—an all-too-frequent pattern that feels like a slap in the face to hard-working employees. The large dividends and stock repurchases have become the norm, viewed as a testament to a healthy company, yet these actions come at a hefty cost to the workers who are consistently told that they need to tighten their belts because “there just isn’t enough money.” How is it that profits can be so robust when the workforce itself is treated as expendable?
It’s frustrating to witness the narrative that somehow this financial engineering is necessary for the company’s health, while in reality, it’s often a guise under which the boardroom elites hoard wealth at the expense of those who keep the wheels turning. Unions are depicted as the antagonists of corporate stability when, in reality, they’re the ones striving for fairness and equality. The ability of corporations to continually shrink their labor cost while boasting about stellar profits is a fundamental flaw in the system—a system that prioritizes shareholders above all.
Moreover, I increasingly sense that this all demonstrates an egregious failure of accountability. We see this with GM, a company that has not only managed to turn hefty profits but has also benefited from government support in the past. Despite this, the focus remains singularly on stock prices rather than ensuring fair treatment for employees. If our tax dollars are propping up these corporations, then why aren’t we demanding substantive commitments to fair wages and employment security in return? The disparity is a glaring reminder of the widening gap between executives and employees.
I can’t push aside the troubling realization that we may now be entrenched in a new gilded age, where those at the top feed off the labor of those at the bottom while perpetuating a cycle of exploitation. The ongoing wage stagnation faced by workers—often reflective in the absurdly low percentage increases in pay versus soaring profits—is a bitter pill to swallow. It feels like a game where the rules are rigged; a game designed to ensure that while the corporate executive’s yachts keep getting bigger, the employees’ lives stay stagnant.
This pattern isn’t isolated to GM; it’s a glaring reflection of corporate America as a whole. Companies wade through profits like water, using every opportunity to tout success to investors, yet turn a blind eye to the cries for recognition and fair compensation from their workers. It seems as if the incessant drive for “infinite growth” has resulted not just in financial outcomes, but also in systemic neglect of the individuals building the very foundations of these corporations. This is precisely why supporting organized labor is crucial. Workers deserve representation in the face of corporate greed, and if any realization can resonate throughout this narrative, it is that the time for substantive change is now.
We must recognize that the vast wealth accumulation within these corporations cannot continue unchecked. The repercussions of ignoring the needs of the workforce extend beyond individual welfare; they encapsulate the essence of a sustainable economy. Living through this wave of corporate governance, I find myself questioning how the balance can be restored, and it becomes clear to me that the path forward must involve greater responsibility and equity from the companies we allow to flourish. New laws are needed to ensure that every stakeholder, not just shareholders, benefits from the prosperity that is claimed by the corporations. As long as we continue to let these companies treat employees as afterthoughts rather than foundational assets, we not only risk the livelihood of millions, but we also jeopardize the very fabric of our economic system.