According to a union official's letter, Delphi was looking to cut workers' total UAW wage and benefits package to $16 to $18 an hour, <b>down from about $65 an hour currently.</b> Delphi aimed to make this happen by slashing wages to about $10 an hour and eliminating cost-of-living allowances. It would have also cut <b>the program under which workers on longer-term layoffs continue to get full pay</b>, plus reducing the union health-care plan and trimming vacations and holidays. http://www.marketwatch.com/news/yho...o&guid={6AB8D6A4-C0BF-4DEB-B453-F1B364DD915B} _________ $65/hour in total compensation! I bet even the socialist frogs making peugeots & citroens don't make half that. Anyone else wondering why U.S. durable goods manufacturers can no longer compete?
are you include fringe benefits in at hourly earning??? i think its more like 25-30 which is still high... but do you personally think anyone in a highly unionized area can live in 10-12 per hour?? that barely 24k per year. I don't personally agree with them making 30 per hour for doing brainless work but at least a relatively comfortable living is not asking to much 35-45k per year 1 which would equate to around 17 to 20 per hour. look these companies can pay these people 50 hour for all the automation these parts companies have through technology but when you have competitors pay chinese peasants $1 per hour there is no competition at all... simply not fair for the american worker.
their standard of living is alot lower then ours. the world is split in two... former communists and the developed countries...until that gap thins out there is no pure competition that free market economics stands by.
GM Cut to `Sell' By Banc of America After Delphi Bankruptcy Oct. 10 (Bloomberg) -- General Motors Corp., the world's biggest carmaker, was cut to ``sell'' from ``neutral'' by Banc of America after the bankruptcy filing of former unit Delphi Corp. raised the chance GM may seek court protection as well. Banc of American analyst Ronald Tadross today increased his odds of GM filing for bankruptcy to 30 percent from 10 percent and lowered his target share price to $18 from $32. ``We think GM's biggest supplier's (Delphi's) recent bankruptcy filing should raise GM's retirement liabilities by at least $6 per share,'' he said in an e-mailed note forwarded from a client. Delphi on Oct. 8 filed in U.S. Bankruptcy Court in New York in the largest auto industry reorganization in U.S. history. The plans to shut, sell or consolidate U.S. plants. Delphi's default may add as much as $11 billion to GM's retirement costs if the automaker has to meet a 1999 promise to guarantee the pension obligations of Delphi, GM spokeswoman Toni Simonetti said Oct. 8. The automaker said in a statement that it expects the exposure, which would be added to GM's future pension and health- care liabilities, would be somewhere in the middle of the range from zero to $11 billion. Delphi has told GM it is ``more likely than not'' that GM will be obligated for some retirement expenses because of the bankruptcy, GM said. GM said it owes Delphi about $1.2 billion for parts it has purchased and may be able to offset some of what Delphi owes it by not making those payments if allowed by the bankruptcy judge. GM accounts for almost 50 percent of Delphi's sales. Troy, Michigan-based Delphi is seeking to revitalize its operations while regulators probe improper accounting that enabled the company to overstate years of cash flow and profit.
the co will demand huge concessions. the union, although they know concessions must be made, will lead a strike and eventually cave. the company will ask for larger than needed concessions, the union leasdership will keep their jobs by getting the workers a better deal than the company asked for originally. company gets what they want, union leadership keeps jobs & workers take a reality haircut. a strike is only necessary so that union leadership can keep jobs... the workers & company should be at bargaining table now to help save both
Will GM follow Delphi into bankruptcy? One analyst puts chance of bankruptcy at GM at 30% after Delphi filed, but another says no. October 10, 2005: 5:32 PM EDT By Chris Isidore, CNN/Money senior writer NEW YORK (CNN/Money) - The chances that General Motors will file for bankruptcy are now about 30 percent, according to one industry analyst, following the bankruptcy filing by the company's former parts unit, Delphi. Rod Tadross, Banc of America's securities analyst, estimated Monday that GM's retirement liabilities rose to about $6 a share after the automaker warned Saturday that it could be on the hook for as much as $11 billion in contract obligations to its former employees at Delphi. GM spun off the world's largest auto-parts maker in 1999 but retained responsibility for some of the company's retirement health and pension benefits if Delphi filed for bankruptcy before 2007. http://money.cnn.com/2005/10/10/news/fortune500/gm_outlook/index.htm
When the local UAW plant cut its production from 3 shifts to 1 the average earnings of these workers was $75k a year:eek: Not to mention that on any holiday like memorial day - that friday before - half the work force of full timers would simply call in sick so they could get a 4 day weekend. Many drink on lunch (not coke or pepsi either) - watch movies on the job - flat out lazy - and i could keep going. What the union does is send these people home without pay instead of firing them. In fact it literally takes a criminal act to get fired from it. So UAW gets their workers 75k a year but fails to give companies like GM a quality work force who actually deserves the money. I say good riddance to any company that would allow a union of workers to do this - hell in my neck of the woods making half of that would allow anyone to live a very nice life. Home ownership newer car purchase and a toy. Now onto cars - as a fan of the import "go karts" VW, Honda, Mitsubishi, Subaru etc - the only American car even worth it is the Neon SRT4. The Cobalt is ugly and is just the wrong setup for going after the import crowd. Mid size - boring - what midsize GM or Ford does anyone want? Chrysler has a good thing going with its 300/magnum/charger lineup but even those cars are not as impressive as say an import in the style department. Trucks & SUVs - VW's diesel is the most powerful for any truck (noncommercial) at 310hp and 500ft lbs+ - puts those American trucks to shame. Gas powered in both classes are dying with gas prices rising. I think a government funding of health care would help GM and Ford stay afloat. Then take on the union and demand they trim the fat and come to work or put the whole group out of work and hire "scabs" who will show up to work for half the pay. Then get on the designers butts to come up with some eye catching styles with ground shaking performance that is effcient and make them affordable. But who knows - GM made some dumb moves itself - but if it wants to survive it needs a complete overhaul or else everyone will be out of a job.
you think right, in fact govt funding will help any biz stay afloat.... im not buying it... what will also help these cos stay afloat is to go into BK, reorganize & come out leaner. the workers will be forced to pay for a portion otheir medical insurance & take pay cuts... if they think they are worth more on the open market, well there's the door; prove it. the tough one is the reitrees that are gonna get dry humped into submission.