Delphi demands 63% pay cut from UAW - Delphi execs get boost in severance

[Bozita]

Yep, two articles. Put them together and you get a good picture of Bush's new economy.

Read and weep.

Headline article, frontpage above the fold:
http://www.freep.com/money/autonews/delphi7e_20051007.htm

Delphi demands 63% pay cut from UAW

BY MICHAEL ELLIS
FREE PRESS BUSINESS WRITER

October 7, 2005


Delphi Corp. has demanded such drastic cuts in wages and benefits for workers that, according to one UAW local , its members would no longer be able to afford the cars they help build.


According to a flyer sent to at least two UAW locals Thursday, the company is asking for wage cuts of as much as 63%, to $10 an hour, and for workers to pay 27% of their health care costs versus 7% currently.


Union members at several Delphi plants say they and their coworkers are not going to agree to such a severe change in their livelihood, even if it means that the company will end up declaring bankruptcy under Chapter 11. But if the workers say no and Delphi goes bankrupt, plants could be closed, thousands of workers could lose their jobs and companies that depend on Delphi, including General Motors Corp., could face costly disruptions.


Delphi, the nation's largest auto parts supplier, is a critical component of Michigan's economy, employing 14,700 people in the state and creating thousands of jobs at the smaller suppliers it works with.

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And now, let's see what's happening to Delphi execs:

http://www.freep.com/news/latestnews/pm6516_20051007.htm

Delphi execs get boost in severance pay


Friday, October 7, 2005

BY JASON ROBERSON
FREE PRESS BUSINESS WRITER

Delphi Corp., the nation’s largest automotive parts supplier, approved a separation agreement for each of its 21 U.S. officers that bumps up their pay if they lose their jobs, according to a filing with the Securities and Exchange Commission posted Friday.

The previous separation agreement for Delphi’s top executives was identical to that of all salaried employees, a problem that Delphi Chief Executive Officer Robert S. “Steve” Miller pointed out to Delphi’s compensation committee, according to the filing.

"It wasn’t competitive," said Claudia Baucus, a Delphi spokeswoman.

This new separation agreement -- which provides for a severance payment in the event Delphi terminates the officer’s employment without cause or if the officer quits for good reason -- includes 18 months of salary and 18 months of bonuses after the officer leaves the company. Currently all salaried employees receive severance pay for 12 months after leaving the company.

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