Quote:
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Originally Posted by Cathar
• Indiana employees: nearly 7,000
• 2004 performance: Lost $4.7 billion on sales of $28.6 billion
"More than 3,000 of those workers are union members whom Delphi executives have targeted for hefty pay and benefit cuts."
Hmmm, $4.7bil / 3000 = $1.57mil per worker.
Must be paying these unionised workers some pretty nice salaries nowadays if a pay cut to 3000 workers is going to turn the company around...
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iiuc that's only
part of their US workforce (i guess that US regional papers are much more concerned with local jobs..) - further down the article it says
The bankruptcy affects only Delphi's U.S. operations and its 50,000 domestic employees. The company's foreign units and 135,000 employees would not be impacted.
The 25,000 Delphi employees represented by the UAW -- about 80 percent of its domestic hourly work force -- receive the same wages as GM workers, about $27 an hour. Miller said that is about twice as much as workers at Delphi competitors.*
so i guess that (using ricecrispi's figures for a worker based on a 40hr week as i don't know what kind of working week is normal in the states....) that's a potential saving of about $676million if they cut to $14/hr..... so add on the 4k "spare" workers and you're over a billion$ - which seems to be the scale of the current problem (if they've lost $750m in the year to date...)
*not sure is the other 20% of the hourly paid workers are on different terms or not... i would assume that closed shops etc are unlikely to be legal in the US so that employees who don't join the union get the same terms, but as i'm not sure i've left them out of the equation ....
i have to say that $27 an hour seems an extraordinarily high wage for a production line worker - and presumably there are benefits on top??
Delphi's 12,000 domestic retirees also face uncertainty. Delphi will continue to pay and fund its pension obligations, but a Delphi attorney told a bankruptcy judge in New York on Saturday that its retiree obligations are "unsustainable and will eventually sink the company."
At the end of 2004, Delphi had $4.3 billion in unfunded pension liabilities, according to a filing with the Securities and Exchange Commission.
Delphi has sought some relief from GM, which spun off Delphi in 1999. As part of that deal, GM is liable for some of Delphi's pension obligations if Delphi is in bankruptcy. GM estimated Saturday that total could reach $11 billion.
seriously? they let companies fund pensions from their ongoing operations in the states??
US bankruptcy laws seem to be very much for the benefit of the management
