Posted on 04/07/2006 3:17:13 PM PDT by SmithL
Auto parts maker Delphi Corp. is free to move ahead on its plan to offer thousands of hourly employees the chance to retire, a bankruptcy judge ruled Friday, marking a key milestone in the company's effort to tame staffing levels amid falling production.
The ruling allows Delphi, one of the world's largest suppliers of auto parts, to pay as many as 13,000 hourly employees to retire. Based in Troy, Mich., Delphi filed for bankruptcy protection in October and is trying to shed what it says are increasingly unsustainable labor agreements that have left it overstaffed and saddled with costly benefit programs.
Judge Robert Drain, of the U.S. Bankruptcy Court in Manhattan, on Friday approved Delphi's plan to offer eligible employees a $35,000 lump sum payment in exchange for their retirement. The payments will actually be funded by former parent General Motors Corp., which agreed to do so as part of a broader labor deal.
Delphi, General Motors and their largest union, the United Auto Workers, announced that deal in March. Under the agreement, some 113,000 GM workers could be eligible for early-retirement incentives or buyouts of between $35,000 and $140,000, depending on seniority and whether they want to keep health care and other benefits.
(Excerpt) Read more at sfgate.com ...
GM seems like a bad company to work for.
If I was a shareholder, my position would be: oust the entire board of directors, and oust all top management.
To continue paying big bucks to people that kill the Camaro line with no replacement, that name cars "Lucerne," and that move at the speed of glaciers is stupid.
"Blaming Mgmt is only a small part of the problem. The unions have caused a large part of the problem & they know it."
What do the unions have to do with naming the car "Lucerne?"
Why can all the other auto companies deal with their unique labor situations, except GM and Ford?
Bottom line for me: GM has been badly managed for a long time. Too many mistakes.
Yes, caving to labor is among the mistakes, but is only one.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.