On many occasions the NH Labor News has shown the similarities between unions and the Occupy movement. The economic divide between the working class and the executives who run the corporations. This divide has grown astronomically over the last 10-15 years. While workers are struggling to pay their bills durning this down economy some executives are taking advantage of loopholes in the Federal Government Contracting language. However, President Obama is trying to fix this.
Lesley Field, Acting Administrator of Office of Management and Budget: Office of Federal Procurement Policy explains:
Here are the facts: since 1995, the Government has been required by statute to reimburse senior executives under Federal contracts up to the annual compensation for the top executives at large publicly-traded companies. In 2010, this meant that the Government had to reimburse up to nearly $694,000 – more than 2 ½ times the $250,000 the Government paid when the cap was first instituted in 1995.
So now the President is calling on Congress to act before the Office of Personel Management raises the current cap to $750,000 (1). This should be a no-brainer for all of those Representatives who are looking to cut spending and reduce the Federal budget. Field also stressed: “The proposal does not limit how much contractors may pay their executives – only how much the Government will reimburse them”. If companies choose to pay their senior executives 10 times the average workers pay that is their choice. However the President want to put a stop to the Federal Government paying these outrageous salaries.
Think of all the money that could go back to the people who need it by cutting the Federal reimbursement of these salaries!