The following are self explanatory:
Delphi demands 63% pay cut from UAW
October 7, 2005Delphi execs get severance boost
BY MICHAEL ELLIS
FREE PRESS BUSINESS WRITER
Delphi Corp. has demanded such drastic cuts in wages and benefits for workers that, according to one UAW local , its members would no longer be able to afford the cars they help build.
DELPHI'S PAY DEMANDS
Delphi has threatened to declare bankruptcy unless it gets concessions from the UAW and aid from former parent General Motors Corp. The demands, according to newsletters sent to UAW locals, include:
•Reducing pay by as much as 63% to $10 to $12 an hour and total wages and benefits by as much as 77% to $16 to $18 an hour. Delphi currently pays its union workers from $25 to $27 an hour and total wages and benefits of $65 to $70 an hour, making its employees among the best-paid industrial workers in America.
•The right to close, sell or consolidate most of its U.S. plants over the next three years.
•Ending all cost-of-living pay increases.
•Eliminating pay during the Independence week shutdown in July.
•Eliminating the jobs bank, under which Delphi guarantees the pay and benefits for unnecessary workers.
•Reducing holidays to 10 to 12 days per year, down from about 16.
•Reducing vacation to a maximum of four weeks per year.
•Increasing employee contributions for health care to match the salaried plan by increasing doctor and prescription co-pays and other measures. Delphi hourly employees pay about 7% of their health care costs, compared with the 27% paid by salaried workers.
•Changing pensions to reflect the lower wage rates by cutting them to less than $1,500 a month instead of the current rate of about $3,000.
According to a flyer sent to at least two UAW locals Thursday, the company is asking for wage cuts of as much as 63%, to $10 an hour, and for workers to pay 27% of their health care costs versus 7% currently
October 8, 2005
BY MARK PHELAN
FREE PRESS BUSINESS WRITER
With reports circulating that Delphi Corp. could file for bankruptcy as early as today, the company promised about 21 of its top executives Friday that they'd get more money if they are fired or laid off.
THE WORKERS: Take a 63% cut in pay? First reaction is anger
The Troy-based maker of almost every part you'll find on a car, from brakes to satellite radio receivers, wants to encourage those leaders to stick with the company, even if it files for bankruptcy. Delphi is the nation's largest auto supplier and the fourth-largest company in Michigan.
But the richer benefits for top executives were just another insult to many of the company's blue-collar workers, who found out Thursday that the company wants to cut their pay as much as 63% and reduce health care and retirement benefits.