Full Version: Delphi declares Chapter 11
I pointed out that Delphi's costs were static even when their sales were down. Why is that? Their labor costs are fixed. They cannot close idle (or below capacity) plants because of the union.
I will agree with you that the management should not be giving themselves raises at this time, but you can almost see why they are doing it: they need to keep "key" people from leaving during this time of crisis.
Delphi does not design parts: GM does. They really have little control over who their customer is. Their customer is GM, by and large.
Delphi has gone out and gotten contracts from other companies than GM. That is a feather in their cap. Getting away from the mess that is GM.
The problem here is cost. Cost, cost, cost. The union is a huge part of that. It keeps labor costs up and it keeps overhead up by forcing Delphi to keep money-losing plants open.
I will agree with you that the management should not be giving themselves raises at this time, but you can almost see why they are doing it: they need to keep "key" people from leaving during this time of crisis.
Delphi does not design parts: GM does. They really have little control over who their customer is. Their customer is GM, by and large.
Delphi has gone out and gotten contracts from other companies than GM. That is a feather in their cap. Getting away from the mess that is GM.
The problem here is cost. Cost, cost, cost. The union is a huge part of that. It keeps labor costs up and it keeps overhead up by forcing Delphi to keep money-losing plants open.
I don't think there is anything such as a "key person" in an organization like Delphi- all management are completely replaceable with a lower paid person, in fact, I know at least three right off the top of my head that would work for a mere 500K per year and do a bang up job LOL
Okay, that little snarky comment aside-
Looks like UAW DOES adapt- far quicker and far more intelligently than any managment in the US- they just signed a tentative contract saving 15 billion of the 60 billion in legacy costs for retirees, based on employee contributions- I wonder if management has made any concessions on thier benefits, salary and behavior? Somehow I doubt it
UAW, with a stroke of the pen, has reduced the companies liability by 1/4- and the employee has made sacrifices for the good of the company- what sacrifices has management made? How about none- ever?
I think this makes DRs friend comments about "management screwing us over" completely correct- Just think, Waggoner could save the company 3 mil a year just by giving back 1/4 of his salary, and STILL make more than 99% of the poeple in America. Not even a real sacrifice IMHO. But he still won't do it- too greedy, immoral and unethical.
The bottom line here shows one thing- Unions have a self interest in the long time viability of a company, management does not- and that is the entire debate- how do we force management in America to start looking after the long term health of companies that they present no risk of tearing apart, as long as they tear it apart through general incompetence, legally, without fraud?
Each and every time a company has been in dire straights in America, Unions have offered concesions to keep the doors open, it is management that has run it into the ground.
In fact, UAWs actions probably have had more positive effect on this company than any CEOs decisions for the last 40 years.
On a side note, Kirk Kerkorkian looks like he hasn't lost his touch- I wonder if he knew that UAW would do this?
Okay, that little snarky comment aside-
Looks like UAW DOES adapt- far quicker and far more intelligently than any managment in the US- they just signed a tentative contract saving 15 billion of the 60 billion in legacy costs for retirees, based on employee contributions- I wonder if management has made any concessions on thier benefits, salary and behavior? Somehow I doubt it
UAW, with a stroke of the pen, has reduced the companies liability by 1/4- and the employee has made sacrifices for the good of the company- what sacrifices has management made? How about none- ever?
I think this makes DRs friend comments about "management screwing us over" completely correct- Just think, Waggoner could save the company 3 mil a year just by giving back 1/4 of his salary, and STILL make more than 99% of the poeple in America. Not even a real sacrifice IMHO. But he still won't do it- too greedy, immoral and unethical.
The bottom line here shows one thing- Unions have a self interest in the long time viability of a company, management does not- and that is the entire debate- how do we force management in America to start looking after the long term health of companies that they present no risk of tearing apart, as long as they tear it apart through general incompetence, legally, without fraud?
Each and every time a company has been in dire straights in America, Unions have offered concesions to keep the doors open, it is management that has run it into the ground.
In fact, UAWs actions probably have had more positive effect on this company than any CEOs decisions for the last 40 years.
On a side note, Kirk Kerkorkian looks like he hasn't lost his touch- I wonder if he knew that UAW would do this?
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