Posted on 05/11/2006 10:53:55 AM PDT by Racer1
NEW YORK (CNNMoney.com) - Bankrupt auto parts maker Delphi is seeking permission to pay about $60 million in bonuses to its white-collar employees, at the same time it is trying to cut the pay of its union-represented workers by about 40 percent.
(Excerpt) Read more at money.cnn.com ...
Unions killed Detroit.....now management is carving the tombstone.
"Our hourly work force is being paid above what competitors are paying. They've received increased compensation in recent years," said Delphi spokeswoman Claudia Piccinin. "By contrast our salaried work force is paid at or below our competitors. We've seen increased turnover of salaried staff since we filed for bankruptcy."
While I'm generally not for huge executive bonuses when companies do poorly, I think, if true, this is an important point to consider. If you want to keep and/or attract the best talent, you must pay competitive wages.
I,m sure they played there part, but managements lack of ideas and insight is what has them in trouble now. Just look at the battle the big 3 are in against Toyota and Honda now. If management hadn't been milking the SUV wave, they wouldn't had near the trouble they have now.
So you oppose carmakers building cars that Americans want?
The SUV wave was successful because people wanted SUVs. The problem came in financing them for free.
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What consumers saved on financing they're shelling out on gas now!!
It always comes back to bite you.
So the $60M breaks down to an average of less than $5k per salaried employee vs. an average of $72k per exec
It always sells because the second deadly sin is envy and that always sells.
There are instances where management proves that it possesses the sixth deadly sin--greed; however, it seems the people trying to salvage this company are trying to redress previous wrongs and, at the same time, provide incentives to secure necessary management expertise.
It make little or no matter whether management is making the right choice. They will be pilloried on the basis of envy and lose the argument.
Those rats. Deserting a sinking ship. How dare they?
You may be right. I don't know how they will distribute the money. I think the cut per employee at 40% will most likely be at least that much. I situations like this everyone should help and take a cut. After all when these guys talk in meetings its always we or team. Where is the team now.
I don't know if I would use the phrase "best talent" to describe a group of people who have steered a company right into bankruptcy.
The primary words here are "bankrupt auto parts maker".
I can see that 33,000 folks would be needed to turn out the parts but WTF - 14000 management ?
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