After battling for months with Pratt & Whitney over ways to save more than 1,000 jobs at two facilities in Connecticut, the IAM welcomed a suggestion by Connecticut Treasurer Denise Nappier to cut executive pay as a means to keep Pratt’s Cheshire and East Hartford operations open.
“The loss of 1,000 skilled jobs at Pratt & Whitney will impact thousands more in Connecticut, in terms of the effect on suppliers and subcontractors, and on the mom and pop enterprises that form the backbone of their local economies. As many as 6,000 jobs are at stake right now, and it is high time to take a closer look at the executive compensation practices at UTC,” said Nappier.
According to Nappier, five top UTC executives, who raked in $70 million in total compensation last year, could easily eliminate that cash gap that P&W claims is needed to keep the facilities open and operating in Connecticut.
“By scaling back executive compensation to a more reasonable level, the company can retain these skilled jobs in Connecticut without negatively impacting the bottom line and shareholder value,” Nappier stated.
Pratt & Whitney, a highly profitable subsidiary of UTC, claims the closure of the Cheshire and East Hartford facilities is necessary due to a $20 million gap between the cost of operating in Connecticut and moving the work elsewhere.
“Treasurer Nappier, as always, knows her facts and figures, and watches out for the fiduciary welfare of the state,” said District 26 Directing Business Representative Everett Corey. “In this case, her assessment is right on target – a few well-paid executives could, with little personal sacrifice, save the jobs of 1,000 Pratt workers and thousands more in communities across the state.”
Not surprisingly, UTC responded by defending its outsized executive compensation levels, which are among the highest in the nation. “We believe that UTC executive compensation practices have contributed to our record of outperforming our peers and delivering value to our shareholders,” said a UTC spokesman.