I have no experience with posting diaries but while reading the Detroit Free Press this a.m. I jumped from my breakfast and dashed to my computer. According to an headline article written by staff writer Michael Ellis with help from staff writer Mark Phelan “Delphi demands a 63% pay cut from the U.A.W.” Quoting from the story “Delphi Corp. has demanded such drastic cuts in wages and benefits for workers that, according to one local U.A.W. local union, its members would no longer be able to afford they help build. According to a flyer sent to at least two U.A.W. 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 cuts, versus 7% currently.” More after the flip.
“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.”
That is just the beginning of a story that outlines Delphi demands that include cuts in wages, benefits, vacation time, pensions and the like, and comes shortly before the company’s deadline for a deal with the union.
The man at the top of the Delphi is an old hand at grave dancing from the W.L.Ross Co. His game plan is simply to make the workers agree to impossible demands.If they don’t he will throw the company into bankruptcy, relieving its pension and health costs for retirees.That bankruptcy filing will also legally throw all these liabilities back onto GM which will be put in immense danger.
Now the beauty of all these maneuverings is that W.L. Ross, which has placed the trojan horse Robert Miller at Delphi gets a first crack at picking up the bankrupt Delphi.At the right opportunity, it will unload Delphi along with several other bankrupt auto parts companies to the highest bidder.
In Kokomo, there is no joy today among the hundreds of Delphi people dependent on that company for their livelihood.
Thanks for the comment and insight. Sad day for Kokomo , Detroit, and other Midwestern towns. Lots of blame to go around on this sad deal. The MBA,s at GM who run that show, must be shaking their heads again today. They didn’t get it when they built the first generation of U.S. made compact cars in the 60’s to ward of imports from VW. They didn’t get it in the gas crunch days of the 70’s when they were building gas-guzzling Sedans with big v-8’s.
If they really have bet the farm on a new generation of big boxy SUV’s like another recent Free Press headline proclaimed, then I’m afraid the bank is going to foreclose real soon. Then another line from the laste 70’s will have new relevancy: “last person out of Michigan, remember to turn out the lights!”,
I’m originally from the Detroit area. Growing up it was still possible to be both blue collar and middle class. My father was an auto mechanic at a time when the combination of high skill level and seniority meant that he could earn a very good living. He even once became a “free agent” and had different car dealerships bidding for his services.
But that is ancient history. For Delphi the writing is on the wall. No American car company is looking locally for parts — and just as GM and Ford complain about high health care costs, Delphi must also shoulder the bill for America’s failure to establish universal health care.
So why do so many middle class Americans vote Republican? The Republicans will tell you its “values”. The Democrats say its because too many liberals are not strong enough on defense and too strong on abortion rights.
I believe it is because the Democrats have failed to differentiate themselves from the Republicans by proposing real solutions to real middle class problems: health care, education and the like. And when the Democrats do address these issues it is with lukewarm rhetoric that does not sound too different than the Republicans.
Sadly, many Democrats believe that by addressing these issues with real solutions we will be labeled as lefties — but aren’t we already labeled as lefties for simply opposing the Bush administration? Besides, the idea that “staying the course” and letting the Republicans implode sounds too much like Bush telling us to “stay the course” in Iraq — both are failed policies, and neither will provide evidence that what is failing today will succeed tomorrow.
Thanks for the comment and insight numediaman, I to remember Detroit as a thriving blue collar, middle class town.
Lots of blame to go around on this sad deal, including the MBA’s at GM who run the show. Recently another Free Press Headline proclaimed that GM Stakes Future ON New Yukon. How many times does that company have to get hit over the head with energy crisis situations before they understand what to build? I’m afraid if they really have bet the farm on a new generation of giant SUV’s, they will be getting a foreclosure notice soon.
I appreciate your comment about Republican Lite Democrats as well. Lots of folks at BooMan are talking seriously about a third party, because they are so frustrated with the Dems.
for the diary keepinon. I don’t really read the local media much, so posts like this keep me up to date.
Seems to me that Delphi spin-off is working out just about as it was planned. “Externalization of costs” by corporations. Because that is what our system encourages. Enriches corporate owners and stewards. Makes society (i.e., taxpayers) pay. Ultimately, you end up with a broke government, and a bunch of corporations that are sold-out, not capable of any positive production for society, a gigantic underclass burdened with public and private debt, and a few robber barons who can afford to live the life of the jet-set in the new global community.
America. You gotta love it.
Appreciate the comments and your rec. BostonJoe. This sad deal has lots of blame to spread around, including the MBA’s at GM who run the show. Another recent Free Press Headline proclaimed that GM Stakes Future On New Yukon. They didn’t get it in the 60’s when they built the first generation US “compact cars” to ward of the VW Beetle. They didn’t get it in the gas crunch days of the 70’s when they were selling Big Boxy Sedans with gas guzzling V-8’s.
If they really have bet the farm on a new generation of large boxy gas guzzling SUV’s, then I think the bank is going to foreclose on them real soon.
I think I will take myself up on my suggestion to you a few days ago. This evening just might be time for a dry Rob Roy… or two! Stay on top of the Plame story for us. I could not stop reading last nights offerings till nearly midnight.
Good diary and also all the comments. This whole mess with GM(and Ford), Delphi will effect not only Michigan but the whole country.
I don’t know how far heads in the sand the American car companies had to be to continue to ignore all the warning signs of continuing with their pigheaded quest to make gas guzzling vehicles-or the American public to continue to buy them-but the warning signs have now turned into very dangerous times for workers in those companies(not the big shots of course they have their fucken money).
The auto industry once the backbone of blue collar families let itself be consumed by greed and is causing the industry here to die and with it millions of families and a huge part of the economy.
Thanks for the comment and insight. I’m reminded of the 80’s film staring Michael Douglas who plays a Wall Street type. He buys companies, then dismantles them for profit. As he is about to do this to an airline company, he addresses the stockholders at a meeting. The classic “Greed is Good” line comes from his address. Apparently, that line could be attached to the CEO at Delphi. Most folks who have a stake in the survival of Delphi (don’t we all?) would disagree.
You know most of us don’t see the connection between peace and the health of our economy.Imagine for all the money wasted on Iraq and Afghanistan, what could have been accomplished by investing in our education, infrastructure and health?
As a simple example, while the Republicans were busy blocking tax payer supported Universal Health Insurance,it is exactly the kind of program that would have helped GM, Delphi,Ford, Visteon and many others.When the health insurance premiums are removed as a line item from corporate operations, the survivability of our corporations increases tremendously. That would, however, require that the Republicans think of our people as assets, a task at which they do not excel.
The large tax cuts that have essentially emptied our Treasury of the funds needed for necessary projects, like levees for New Orleans, were deemed more important, for ideological reasons, than meeting the needs of people.Even when the full dimensions of the tragedy was unfolding before our eyes,the Administration’s response amounted to an eyewash.
Nothing short of a spiritual and moral change would be needed to set our country on the right path.Like Ambassador Wilson correctly predicted after the Niger forgey and Iraq debacle, “We are f—-d”.