Posted on 10/16/2005 9:02:20 PM PDT by Born Conservative
They both deserve each other.
"New York bankruptcy Judge Robert Drain"
That is a great name for a bankruptcy judge, it's like something out of Dickens!
Being granted a bankruptcy allows a person or a corporation to escape certain financial and contractual obligations. If the bankruptcy would allow Delphi to negate certain obligations to its hourly employees, then the severance packages for salaried employees should be looked at as well.
Giving executives a ton of money and the workers peanuts is disgusting.
Bankruptcy judges pay attention to management and the creditors (usually a committee) rarely to unions.
The UAW won't be happy until they drive the big three as well as Caterpillar out of business. It's a funny thing, these people trying to bankrupt the people who feed them.
Agreed, but if the union has an agreement that the company is seeking to breach, the union WILL have input.
Won't these guys collect more in unemployent compensation than what Delphi is offering in pay? A single guy could squeeze by on $20K, but a family? Forget it.
Guess Delphi will imitate Tyson's chicken and hire a lot of illegal aliens.
The "executives" get the money only if they are laid off and even then they aren't allowed to work for a competitor for 18 months.
Take it as a sign that they actually don't intend to lay off managers and are serious about emerging from bankruptcy.
So, if part of the reorganization is a change in the collective bargaining agreement, then the judge will allow no input from the union.
I'm no friend of the UAW (I work in automotive and write this from Korea, where the UAW has forced us to move manufacturing jobs), but it seems awfully lopsided.
Our biggest problem in automotive is not the current wage rates, because those can be bargained (or moved). It's the current benefit agreements with retirees and such.
If those guys on the line had gone to College and learned something, instead of spending all of their time at the Bowling Alley, and Eagles, they might be included in the golden parachute.
Not really
I went to college. I got my MBA.
Believe me, I'm nowhere near "Golden Parachute" territory, and neither are 99% of all salaried employees or college graduates.
I wish that it worked that way ;) Unfortunately, there is, indeed, a significant amount of "cronyism" in even public companies. Operating Officers routinely lease land from friends and purchase materials and services from family members.
Again, though, if GM has contractual obligations with the employees or retirees, and those obligations would be modified or severed under a bankruptcy ruling, then generous payouts to the senior officers should also be reconsidered (if possible).
I agree that creditors are and should be given a significant priority over other considerations, but allowing one group to walk away untouched seems ridiculous.
The hit management usually takes is stock related.
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