The man is Warren Buffett.
Drew Angerer is a photographer.
Warren Buffet declined to intervene in a labor dispute at one of his businesses. The billionaire investor and the CEO of the company delegate responsibility for pay negotiations and most other matters to the bosses of his company's many subsidiaries.
450 steelworkers at Special Metals, a subsidiary of Precision Castparts, have been on strike for 100 days, according to a letter written to Warren Buffet. He complained that their employer has offered them a $2,000 signing bonus instead of a pay raise, and wage increases of only 1% in 2022, and 2% annually over the next three years.
The offer was a "very significant cut in real pay" with inflation currently at over six percent, according to the Vermont senator. He pointed out that Special Metals plans to cut their accrued vacation time and raise their healthcare premiums.
"I am requesting that you intervene in the negotiations because of your personal fortune, cash pile, and Precision Castparts' profitability," wrote the man who is worth $110 billion.
He said that workers should not be concerned about whether they will be able to feed their children or have healthcare. I know that you and the company can do better.
The same day, he replied to the letter, reminding him that most of the decisions about labor and personnel are made by the subsidiaries. The executive wouldn't recommend any action after he passed along the senator's letter. He is responsible for his business.
The chief rushed to defend his businesses from any suggestion that they were anti-union. See's Candies, NetJets, and Buffalo News all have many unionized workers.
It won't surprise his close followers that he dismissed the request for him to wade into a union clash. The investor has structured his company so that he can focus on allocating capital across the conglomerate, striking deals, and managing his stock portfolio instead of running his subsidiaries.
Business Insider has an original article.
