Posted on 10/07/2005 5:05:34 PM PDT by HAL9000
Delphi has improved severance packages for almost two dozen executives as fears grow that North America’s biggest automotive parts supplier is moving closer to seeking bankruptcy protection.Delphi shares almost halved to $1.17 on Friday after rating agencies further cut their ratings and optimism of a deal between the parts maker, the United Auto Workers union and General Motors ebbed. GM is Delphi’s former parent and makes up about half of its revenues. Delphi has warned it may file for court protection by October 17 if substantial progress is not made towards obtaining labour concessions from the union and billions of dollars of financial support from GM. Standard & Poor’s said that while the three parties were “motivated to complete a deal outside of bankruptcy court, the time frame for doing so has become very limited”. Other analysts took the view that an agreement might yet be hammered out by the end of next week.
DELPHI MAY FILE for Chapter 11 as soon as Saturday, leaving workers to face job cuts, slashed medical benefits and uncertain retirements. 7:17 p.m.
I think there are some Delphi workers or retirees on FR....
they want to dump retiree benefit. they pay off the execs, declare bankruptcy, and move everything to china and india and bring the parts for the cars back.
When do the new bankruptcy laws kick in?
Of course, Washington State has the highest corporate income taxes in the nation, so it is a miracle that Microsoft, Amazon, and Boeing (the largest employer in the state) continue to thrive. If they even adopted the managerial techniques of postwar GM and Ford, this state would be f-cked up as well.
The United Auto Workers union, which over several decades crafted a wage-and-benefit package of about $65 an hour -- the undisputed gold standard for U.S. industrial workers -- would find its position weakened in court. The labor and benefits package could be renegotiated if the union and the company fail to reach a deal and most likely the package would be reduced. It is also easier to close plants under the court's protection.
UAW membership numbers have plummeted from 1.5 million in 1979 to 655,000 at the end of 2004.
"The UAW is now going to have to deal with the de-composition of high-wage manufacturing in the United States, just like the steelworkers did. They've avoided it largely, but there's a failure in the system at U.S. auto makers where their costs are divergent from those of a Toyota," said Nelson Lichtenstein, a labor historian at the University of California at Santa Barbara and author of two books on the UAW.
Boeing left...
remember?
All that's in Chicago are the CEO, COO, and the marketing division.
"Management, labor, and government are to blame"
Absolutely right. Greedy, greedier, and greediest.
They file their taxes in Illinois....plus, the 787 will be assembled there, not built.
You are correct in that the wings will be built by Mitsubishi, while the tail will be built (I think) by Toyota. Boeing's domestic plants have effectively become assembly plants since the early 70s.
Toyota!?!?
Better qualify that. "Largest U.S. company factory or something...
"Largest factory in the world" is considered to be China - dwarfs Everett WA 100 times/day.
"Second largest factory in the world" is considered to be India, or so it seems. Everett ain't no India.
China and India ain't factories.
Better look again.
One other 500lb gorilla. Most UAW members are retirees, not workers. They don't care about f'ing over the current generation.
Which is why the UAW caved on outsourcing in the last GM Strike - for health benefits.
About ten days from now, and they severely restrict compensation bailouts for CEO's. This is why the move is being made now. Delphi will go into Chapter 11 but whether before or after the new laws is a question. I would guess sooner rather than later. There is no cavalry coming, since GM spun off Delphi along with a crushing load of legacy obligations to begin with. Delphi is a sacrificial anode to preserve GM's cash flow.
I wouldn't get too cocky. There was a time when the "largest factory in the world" was a place called River Rouge in--you guessed it--Detroit Michigan. Raw iron ore went in one end and finished automobiles rolled out the other. You ought to see it now.
Delphi has warned it may file for court protection by October 17 if substantial progress is not made towards obtaining labour concessions from the union and billions of dollars of financial support from GM.
Why is it that upper Management in troubled companies almost always refuse to own their own failure? Management drops the ball, has a failure in judgement and then gets a raise, lays off some folks and cuts the wages of the rest and then deploy their golden parachute. It's a total lack of accountability.
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