A GM production line in Detroit. Since 2003, the average hourly wage for US car workers has declined about 30 per cent. Bloomberg
A GM production line in Detroit. Since 2003, the average hourly wage for US car workers has declined about 30 per cent. Bloomberg
A GM production line in Detroit. Since 2003, the average hourly wage for US car workers has declined about 30 per cent. Bloomberg
A GM production line in Detroit. Since 2003, the average hourly wage for US car workers has declined about 30 per cent. Bloomberg

How CEOs of Detroit's Big Three car makers made $1bn since 2010


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The United Auto Workers’s historic stand-off with Detroit’s three car-making giants is centred on an age-old tension: The union says corporate greed is keeping workers from earning fair wages while Ford Motor, General Motors and Stellantis say they cannot afford union demands.

While both arguments have some merit, one fact stands out: The 10 people who have served as chief executive officers of the companies since 2010 have collected more than $1 billion in compensation. Meanwhile, the wages of US car workers – unionised or not – have declined by about 17 per cent in that time frame.

This reality underpins the strike now entering its fifth week that is playing out against the backdrop of growing income inequality and rising executive compensation.

“We went backward in wages in the last 15 years,” UAW president Sean Fain told reporters last month. “Hell, most of our members can’t even afford to buy what we make.”

The $1 billion total that Detroit automotive chief executives have taken home includes salaries, bonuses, the value of stock awards, fringe benefits and special payouts linked to retirement or corporate transactions.

A representative for Stellantis noted that recent mergers resulted in large one-time pay packages for the previous chief executives.

The median worker at GM and Ford earned $80,034 and $74,691 in 2022, respectively. Stellantis, which is based in the Netherlands, paid its average employee €64,328 ($67,800) last year.

At both GM and Ford, that puts chief executive-to-worker pay ratios higher than the average among the biggest publicly traded US companies, according to data compiled by Bloomberg.

Stellantis said that it has distributed more than €2 billion in profit-sharing to employees under the current chief executive Carlos Tavares.

In filings, each of the companies say that most chief executive awards are tied to performance targets. If results worsen, payouts shrink. GM chief executive Mary Barra said as much in a recent interview, noting that 92 per cent of her pay was based on performance of the company.

However, each of the current chief executives gets an annual salary of at least $1.7 million, regardless of performance.

While the amounts make for good picket-line material, they are not unique. Corporate boards across industries have for decades doled out bigger and bigger packages to chief executives, leading to a growing divergence between how corporations in the US and beyond have rewarded workers relative to their top bosses.

Wages are one of the major sticking points in union negotiations. The UAW initially asked for 40 per cent increases and wants to emerge from its strikes with at least 30 per cent raises, sources said.

GM's electric Hummer on the production line. The car maker's chief executive has said its labour costs are already $22 an hour more than electric-vehicle leader Tesla. Reuters
GM's electric Hummer on the production line. The car maker's chief executive has said its labour costs are already $22 an hour more than electric-vehicle leader Tesla. Reuters

So far, Ford says its offer of a 23 per cent raise is as high as it can go while GM and Stellantis have been reluctant to offer much more than roughly 20 per cent increases.

There is good reason for the ask: Since 2003, the average hourly wage for US car workers has declined about 30 per cent, according to the Bureau of Labour Statistics.

Among the factors contributing to this trend was the rise of non-unionised car production in the US and the UAW agreeing in 2007 to lower wages for new hires at the Detroit Three's plants.

While Fain has described what some of his members make as “poverty wages”, those employed in vehicle manufacturing still make more than the average private-sector worker – albeit by a narrowing gap.

UAW members also make more than non-unionised workers in the sector.

GM’s chief executive Barra has said the company’s labour costs are already $22 an hour more than electric-vehicle leader Tesla, and that this competitive disadvantage would only grow as a result of the UAW’s requests.

Fain has made it part of his mission to undo concessions agreed to during the Great Recession. Among the benefits sacrificed were pensions – any worker hired before 2008 has one; anyone who has joined since does not.

Legions of companies across industries have scrapped or frozen pension plans because they are costly. One study found that companies save 13.5 per cent on long-term employee payroll costs when they freeze defined pension benefits.

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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Dos

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  • Always ask for the dress code if you don’t know
  • Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work 
  • Wear 100 per cent cotton under the kandura as most fabrics are polyester

Don’ts 

  • Wear hamdania for work, always wear a ghutra and agal 
  • Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
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Cyber crime - This includes fraud, impersonation, scams and deepfake technology, tactics that are increasingly targeting infrastructure and exploiting human vulnerabilities.
Cyber terrorism - Social media platforms are used to spread radical ideologies, misinformation and disinformation, often with the aim of disrupting critical infrastructure such as power grids.
Cyber warfare - Shaped by geopolitical tension, hostile actors seek to infiltrate and compromise national infrastructure, using one country’s systems as a springboard to launch attacks on others.

Tamkeen's offering
  • Option 1: 70% in year 1, 50% in year 2, 30% in year 3
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The National Archives, Abu Dhabi

Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.

Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en

South and West: From a Notebook
Joan Didion
Fourth Estate 

UAE currency: the story behind the money in your pockets
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Matt Hardy and Bray Wyatt win the Raw Tag Team titles against Cesaro and Sheamus

Jeff Hardy retained the United States title against Jinder Mahal

Bludgeon Brothers retain the SmackDown Tag Team titles against the Usos

Seth Rollins retains the Intercontinental title against The Miz, Finn Balor and Samoa Joe

AJ Styles remains WWE World Heavyweight champion after he and Shinsuke Nakamura are both counted out

The Undertaker beats Rusev in a casket match

Brock Lesnar retains the WWE Universal title against Roman Reigns in a steel cage match

Braun Strowman won the 50-man Royal Rumble by eliminating Big Cass last

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Sole survivors
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Sunday:
GP3 race: 12:10pm
Formula 2 race: 1:35pm
Formula 1 race: 5:10pm
Performance: Guns N' Roses

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Updated: October 14, 2023, 4:00 AM