Posted on 10/27/2005 2:36:49 AM PDT by ShadowDancer
Senator 'Stunned' By Delphi Offer To Unions
Auto Supplier To Appear In Federal Bankruptcy Court
POSTED: 4:24 pm EDT October 26, 2005
WASHINGTON -- Sen. Debbie Stabenow said Wednesday she was "stunned" by Delphi Corp.'s proposal to union members to slash hourly workers' pay and jettison health and pension benefits, and urged the auto supplier to abandon its strategy.
The Michigan Democrat, in a letter to Delphi Chairman and CEO Robert S. "Steve" Miller, called the proposal to the United Auto Workers the "wrong strategy" to help the company come back from bankruptcy protection.
"I was stunned to see that Delphi's first offer to its workers calls for an unprecedented elimination of health care and pension benefits, and wages as low as $9 an hour," Stabenow wrote.
"I appreciate the difficult job ahead of you but I strongly believe that this is the wrong strategy for Delphi and all American manufacturers," she wrote. "We need to stop this race to the bottom with cuts in wages and benefits for American workers."
Delphi, in a statement, said it appreciated Stabenow's letter.
"We recognize that we're going to need help from many different people to alleviate the impact of our reorganization on communities. This kind of dialogue from Senator Stabenow is useful and we appreciate the support of our elected officials as we proceed through the restructuring process," the company said.
Details of the proposal emerged Wednesday. Neither the company nor union leadership has disclosed the proposal because a federal bankruptcy court judge granted Delphi's request to keep the offer confidential. Delphi is scheduled to appear in bankruptcy court Thursday.
Under the proposal, the Troy, Mich.-based company would cut base wages to $9.50 to $10.50 an hour for production workers and $19 for skilled trades workers. New production workers would start at a base rate of $9 an hour. Delphi hourly workers currently earn $27 an hour or more.
It would also freeze Delphi's pension plan and accept no new participants after Jan. 1. Delphi also could reduce retiree benefits or terminate the pension plan, and hourly workers would be asked to pay health care deductibles of $900 per individual and $1,800 per family.
A message was left with the UAW.
The UAW, which represents most of Delphi's approximately 34,000 U.S. hourly workers, has blasted the plan. Miller has said he understands the concern of workers but notes the company is paying wage and benefit packages worth $65 an hour, about two to three times more than competitors.
Miller has expressed hope a deal with the unions can be reached by mid-December, when Delphi could ask the bankruptcy court to void its contracts if no agreement has been reached. The court could then impose new contracts.
Stabenow, who met with Miller last week, asked for his support on legislation to lower health care costs, protect workers' pensions and counter trade practices by China and Japan that have caused problems for American companies.
"The solutions are there. Your leadership is needed to help us create the political will to get it done," she wrote.
The fruits of free traitors.
Delphi (old Delco) will soon be a distribution warehouse for parts manufactured in Southeast Asia.
Why would she be "stunned"? The company is simply saying to its workers that if they won't work for ?9/hr., it will simply hire illegals who will be happy to do so at a time when the government could care less about enforcing immigration laws.
Stabanow ping.
Failure to concede to the demands of organized labor has done nothing for this country but bring on the era of soaring unemployment and negative economic growth that we see today! Next you'll be advocating that the government no longer dictate prices OR wages.....fascist!
All one need do is look at the trade rags from the 80's and 90's.
You will see something mentioned over and over, something called "good debt".
Corporations were sold on the idea. And if they tank now, is it their fault, or the bloodsuckers that were there at every turn to offer them credit?
We have all been sold a bill of goods that is fraudulent. Medicare, Social Security, Company pensions, even health care for military veterans has ended up being a screw job.
Because SOMEONE, is making bets about how these assets will perform in the future.
Luv it!
If the Dow was to go to 36,000 tomorrow, all you'd hear is how great it was! What they wouldn't say is how a dollar of you money yesterday would buy one share, and now it will only buy 1/4 a share...
Even if honesty could buy love, perhaps none of us would be happy.
It's called negotiation Sen. Stab-me-now. The auto industry should have come to their senses and taken a harder negotiating line over the last 40 years. Then there might have been something left on the carcass for the union vultures.
The American consumer is first a wage earner. It won't matter how low prices are if the average wage allows nothing but subsistence on beans.
Delphi is/was certainly uncompetitive, but repudiation of contract disturbs me. I guess that this is legal (in certain circumstances) in the US? It seems to make it too easy for management to walk away from their mistakes.
Well, you could call - Threat of firing - extortion also...
It is unconscienable for the courts to void or impose new contracts.
The folks being screwed by the new contracts have no recourse.
We are all well familiar with how many times the courts actually come to defend the little guy.
Nine bucks an hour? Christ, man, people who come across the border, huddle twelve to a van, and fix lawns make more than that!!
Coming from a large Union town, with a few thousand Delphi employees, I can tell you that Delphi workers have taken advantage of Delco/Delphi for years, with the UAW covering for them all the way. I could tell so many stories of my own family members who leave work early every day, show up at work drunk, or only work an hour or two of thier shift when they are there, and they can't be touched because of the UAW. They always demand more money and benefits, but want to work less, and then can't understand when the company they've helped ruin goes under. The company I work for may be non-union, and I may make $10 an hour less than Delphi, but at least I still have a job.
What part of bankruptcy do these people not understand? $9.50 an hour sure is better than a pink slip.
Besides, the Michigan democrat should be happy to Delphi end its health care plan- that gives her another excuse to nationalize health care.
I should also inform you that many of the forum's readers, don't recognize sarcasm....
We've learned to use the < sarcasm> to assure readers when we're being sarcastic..
Semper Fi
My father in law is losing his job December 23 of this year. He has been with the company 6 years. For 3 and a half years the company was nonunion the employees were well treated received raises etc. Because of where the company is located it had to be union. The employees were told by the owner if they went union he would have to close the plant. Now 2 and a half years later the plant is closing and moving back to japan. The owner met all his contract obligations to his customers and is going home.
The union here is so greedy that the owner can not even open up a new business here in Ohio without the union being in the plant.
Now my father in law has to start over again at 60 years of age, oh he lost his last job 7 years ago because of the union at that plant, and the job before that do to the union. He did not vote for the union but he still got screwed by the union.
What Delphi, or Delco, or GM, pays for work is none of Ms. Stabenow's business, and it's none of her business BECAUSE there is nothing she can or should do about it.
She creates nothing, produces nothing, distributes nothing, and buys nothing more than any other Michigan citizen.
She should STFU.
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