March 30, 2006

Delphi's Excistance In Danger?

The big news around here right now is the Delphi-GM-UAW talks about wages and contracts.

Delphi/GM wants to lower employee wages from $27/hour to $16.50/hour. Just on a 40 hour week the employees would be losing $22k/year in wages. Most people work a lot more than 40 hours/week, so potentially they could be losing $30k, $40k or even more per year.

Of course Delphi/GM is pointing the fingers at the hourly worker as the reason why they are near bankrupt, but instead they should turn that finger around and point it at themself.

GM recently is in trouble for "accounting irregualarities" with the Securities Board, hmmm gee that wouldn't hurt the company would it?

Also, why are the top executives taking paycuts also? Their salaries are out of hand and don't match up to the job they doing running the company.

Delphi/GM say they will take it to court and have the judge dismiss the contact under Bankruptcy laws but if that happens the workers will go on strike. And it will be a long, nasty strike. A strike wouldn't be good for GM because something like 80% of their parts are supplied by Delphi, which would close down all GM manufacturing plants.

I mean, what do the workers have to lose by striking? Not much.

Posted by Quality Weenie at March 30, 2006 08:24 AM | TrackBack