Automakers to
workers - “Screw you”

There has never been clearer proof of why the auto industry is in trouble. Exposing no belief in a philosophy of “we are in this together,” the executive ranks have treated the workers just like chumps again.

Take a look at Delphi Corporation. Delphi, with 34,000 hourly workers, was spun off by GM in 1999 and is their largest parts supplier. Their workers earn an average of $27/hr. and are being threatened with closure of the company unless they take a 55% cut in wages.

The unions are in an uproar – especially since Delphi filed a five part compensation plan, for approval by a bankruptcy judge, for 600 executives valued at $400 million. Delphi filed for bankruptcy protection on Oct. 8 with plans to emerge from bankruptcy in 2007. The executives apparently have realized that that the company will not make it and are planning to take care of themselves.

As part of their proposed five-part program, top exec's would receive a lump sum on the day Delphi is sold or emerges from bankruptcy. For instance, Delphi President and Chief Operating Officer Rodney O'Neal, 51, with an average annual salary of $1.2 million, would receive $2.8 million; vice chairman David B. Wohleen, 54, with an average annual salary of $890,000, would receive $2.2 million; chief financial officer Robert J. Dellinger, 44, with a $750,000 average annual salary, would receive $2 million.

GM just announced a restructuring designed to shed 30,000 workers last week. Ford will announce its major overhaul plans, including job cuts, in January.
Posted on The Human Stain