July 20, 2006

Delphi Just Screwed Themselves

I have no doubt in my mind now that Delphi workers will walk out on strike rather than take the huge paycuts and benefit concessions that they are being asked to take by management to save the company.

A U.S. bankruptcy court on Wednesday approved an extension of a multimillion dollar bonus plan for top Delphi Corp. executives over the objections of unions representing its 33,000 U.S. factory workers.

The bonuses, which the supplier argued are vital to retain key employees as it restructures, will go to 460 top officers if Delphi hits certain earnings targets between July and December. Similar bonuses, cleared by the court in February , came to $36.3 million for the first six months of the year, Delphi said. The second piece will total roughly $20 million if the company meets the performance targets and up to $37.9 million if the targets are exceeded.

But the United Auto Workers and Delphi's other five unions blasted the payouts, which come as hourly workers are being asked to accept steep wage and benefit cuts to aid the company's turnaround.

The plan "sends the message that hourly workers are the dispensable commodities of the Chapter 11 case while the executives will be insulated from the effects of a dislocating transformation," the UAW said in a court filing prior to Wednesday's hearing.

These are the same executives who put the supplier in bankruptcy but yet feel that they are owed million dollar bonuses to stay? All the while the rank and file are being asked by these same people to take 60% paycuts and start paying for their own insurance?

A strike is emminent, mark my words.

Posted by Quality Weenie at July 20, 2006 06:58 AM | TrackBack