Delphi seeks hefty wage, benefits cuts
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Governor hints at Delphi incentives
Apparently the Free Market is only supposed to operate for smaller firms.
October 26, 2005
Delphi seeks hefty wage, benefits cuts
UAW says company wants to trim pay 60% and alter terms of pensions, health care
By Dee-Ann Durbin
Associated Press
October 26, 2005
DETROIT -- Delphi Corp., which filed for bankruptcy protection this month, is asking the United Auto Workers to agree to pay cuts of more than 60 percent for hourly workers and to relinquish health and pension benefits and vacation time, according to a summary of the auto supplier's proposal distributed to union members in Indiana.
The summary was posted Tuesday on the Web site of UAW Local 292 in Kokomo, Ind., as well as a Web site run by Kokomo-area union members.
The postings resembled proposals floated before Delphi's bankruptcy, but offered the first details of the company's plan.
According to the summary, Delphi, which employs 5,500 in Kokomo and 1,100 in Anderson, wants to cut base wages to $9.50 to $10.50 an hour for production workers and to $19 for skilled trades workers. New production workers would start at a base rate of $9 an hour. Right now, Delphi hourly workers make $27 an hour or more.
Under the proposal, Troy-based Delphi would eliminate a jobs bank that gives full pay and benefits to around 4,000 laid-off workers, which Delphi says costs it $400 million each year. It also would have the right to sell, close or consolidate any plant.
Delphi's pension plan would be frozen and accept no new participants after Jan. 1, according to the summary. Delphi also could reduce retiree benefits or terminate the pension plan, but no further details were given in the summary.
Delphi and its former parent, General Motors Corp., still are settling how much GM owes Delphi's retirees, including 2,000 in Indiana. GM has said it could be liable for up to $12 billion in pension obligations.
Hourly workers would be asked to pay health-care deductibles for the first time, of $900 per individual and $1,800 per family. Dental and vision care would be eliminated. The proposal would drop annual paid holidays from 16 to 10, including a paid week of vacation between Christmas and Jan. 1. It also would eliminate annual cost-of-living adjustments.
Delphi is scheduled to appear in bankruptcy court Thursday.
A Delphi spokeswoman did not return a call for comment Tuesday night.
A spokesman at the UAW's Detroit headquarters declined to comment Tuesday. Union leaders criticized the proposal harshly when Delphi presented it to them last week.
"Delphi's proposal is designed to hasten the dismantling of America's middle class by importing Third World wages to the United States," said UAW President Ron Gettelfinger and Vice President Richard Shoemaker in a joint statement.
http://www.indystar.com/apps/pbcs.dll/article?AID=/20051026/BUSINESS/510260366/1003
http://www.indystar.com/apps/pbcs.dll/article?AID=/20051026/BUSINESS/510260485/-1/RSS
October 26, 2005
Governor hints at Delphi incentives
By Erika D. Smith
erika.smith@indystar.com
October 26, 2005
Gov. Mitch Daniels met with officials at bankrupt Delphi Corp.'s Kokomo plant today, and said the state may offer incentives to keep and, perhaps, attract jobs at the high-tech Indiana plant.
Daniels did not elaborate saying it is too early to say what those incentives might be or when they might go into effect.
But he said his administration would work with Delphi to promote Indiana as a business-friendly state, with an approachable tax structure and minimal regulatory hoops.
"I believe in playing offense," Daniels said.
Delphi, the Troy-based auto parts supplier, filed for bankruptcy protection earlier this month and is asking the United Auto Workers to agree to pay cuts of more than 60 percent for hourly workers and to relinquish health and pension benefits and vacation time.
Delphi employs 1,100 workers at its ignition parts factory in Anderson and 5,500 at its electronics and safety division headquarters in Kokomo. The Kokomo plant is among the company's most profitable.
Kokomo Mayor Matt McKillip, who also was at the morning meeting, said he expects to have several conversations with state officials over the next few days.
"We hope to turn some lemons into some lemonade," he said.
http://www.indystar.com/apps/pbcs.dll/article?AID=/20051026/BUSINESS/510260485/-1/RSS
Governor hints at Delphi incentives
Apparently the Free Market is only supposed to operate for smaller firms.
October 26, 2005
Delphi seeks hefty wage, benefits cuts
UAW says company wants to trim pay 60% and alter terms of pensions, health care
By Dee-Ann Durbin
Associated Press
October 26, 2005
DETROIT -- Delphi Corp., which filed for bankruptcy protection this month, is asking the United Auto Workers to agree to pay cuts of more than 60 percent for hourly workers and to relinquish health and pension benefits and vacation time, according to a summary of the auto supplier's proposal distributed to union members in Indiana.
The summary was posted Tuesday on the Web site of UAW Local 292 in Kokomo, Ind., as well as a Web site run by Kokomo-area union members.
The postings resembled proposals floated before Delphi's bankruptcy, but offered the first details of the company's plan.
According to the summary, Delphi, which employs 5,500 in Kokomo and 1,100 in Anderson, wants to cut base wages to $9.50 to $10.50 an hour for production workers and to $19 for skilled trades workers. New production workers would start at a base rate of $9 an hour. Right now, Delphi hourly workers make $27 an hour or more.
Under the proposal, Troy-based Delphi would eliminate a jobs bank that gives full pay and benefits to around 4,000 laid-off workers, which Delphi says costs it $400 million each year. It also would have the right to sell, close or consolidate any plant.
Delphi's pension plan would be frozen and accept no new participants after Jan. 1, according to the summary. Delphi also could reduce retiree benefits or terminate the pension plan, but no further details were given in the summary.
Delphi and its former parent, General Motors Corp., still are settling how much GM owes Delphi's retirees, including 2,000 in Indiana. GM has said it could be liable for up to $12 billion in pension obligations.
Hourly workers would be asked to pay health-care deductibles for the first time, of $900 per individual and $1,800 per family. Dental and vision care would be eliminated. The proposal would drop annual paid holidays from 16 to 10, including a paid week of vacation between Christmas and Jan. 1. It also would eliminate annual cost-of-living adjustments.
Delphi is scheduled to appear in bankruptcy court Thursday.
A Delphi spokeswoman did not return a call for comment Tuesday night.
A spokesman at the UAW's Detroit headquarters declined to comment Tuesday. Union leaders criticized the proposal harshly when Delphi presented it to them last week.
"Delphi's proposal is designed to hasten the dismantling of America's middle class by importing Third World wages to the United States," said UAW President Ron Gettelfinger and Vice President Richard Shoemaker in a joint statement.
http://www.indystar.com/apps/pbcs.dll/article?AID=/20051026/BUSINESS/510260366/1003
http://www.indystar.com/apps/pbcs.dll/article?AID=/20051026/BUSINESS/510260485/-1/RSS
October 26, 2005
Governor hints at Delphi incentives
By Erika D. Smith
erika.smith@indystar.com
October 26, 2005
Gov. Mitch Daniels met with officials at bankrupt Delphi Corp.'s Kokomo plant today, and said the state may offer incentives to keep and, perhaps, attract jobs at the high-tech Indiana plant.
Daniels did not elaborate saying it is too early to say what those incentives might be or when they might go into effect.
But he said his administration would work with Delphi to promote Indiana as a business-friendly state, with an approachable tax structure and minimal regulatory hoops.
"I believe in playing offense," Daniels said.
Delphi, the Troy-based auto parts supplier, filed for bankruptcy protection earlier this month and is asking the United Auto Workers to agree to pay cuts of more than 60 percent for hourly workers and to relinquish health and pension benefits and vacation time.
Delphi employs 1,100 workers at its ignition parts factory in Anderson and 5,500 at its electronics and safety division headquarters in Kokomo. The Kokomo plant is among the company's most profitable.
Kokomo Mayor Matt McKillip, who also was at the morning meeting, said he expects to have several conversations with state officials over the next few days.
"We hope to turn some lemons into some lemonade," he said.
http://www.indystar.com/apps/pbcs.dll/article?AID=/20051026/BUSINESS/510260485/-1/RSS
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