Delphi plans to shed most US plants (CNNMoney)

[Black04GTO]

http://biz.yahoo.com/cnnm/060331/033...lphi.html?.v=3

Bankrupt auto parts maker Delphi moved to get out of contracts with both its labor unions and General Motors, its biggest customer, and announced plans to close or sell 20 of its 28 U.S. factories, moves that could spark crippling strikes and lead to a bankruptcy at nation's embattled No. 1 automaker.

Thank you UAW...you can be proud to have history show you brought down the greatest corporation in American automotive history...sleep well tonight...

[tgagneguam]

The nullification of contracts will only lead to no good. I'm certain the UAW will strike. And it would appear that Delphi, which supplies to Ford and Nissan as well as GM, will feel the pinch, too.

And people think GM at $21.00/share (or so) is a bargain? You aint seen nuttin' yet.

Delphi to Void Contracts and Cut 8,500 Jobs
reuters
DETROIT (March 31) - Auto parts maker Delphi Corp. said it will move on Friday to void its labor contracts and unprofitable deals with former parent General Motors Corp., and that it will shed up to 8,500 salaried workers and cut its global plant base by a third.

The sweeping cuts were expected to be a key part of Delphi's attempts to emerge from bankruptcy and Delphi's chief executive said the company has made recent progress in its talks with union leaders and GM.

Delphi, which filed for bankruptcy protection last October, also said it would eliminate up to 40 percent of its corporate officers as it exits numerous noncore businesses.

The supplier said it expects to sell or close one-third of its global manufacturing sites by 2008 to focus on profitable product areas including electronics, navigation and safety. It identified only eight manufacturing sites as core.

Delphi said it expects to file the motions later on Friday. The filings do not immediately permit unions to call strikes that could shut Delphi and hobble GM at a time when it is hoarding cash and releasing key new models, but union leaders have said it could put a damper on talks.

Delphi, which GM spun off in 1999, said hearings on the labor motions would start May 9 in New York bankruptcy court, but it remains in talks with GM and its unions to try to reach agreements to make its remaining U.S. operations profitable.

"Emergence from the Chapter 11 process in the U.S. requires that we make difficult, yet necessary, decisions," Chief Executive Steve Miller said in the statement, adding that he had seen progress in talks with GM and the unions.

Delphi in October put its U.S. operations in Chapter 11 mainly to slash wages and benefits of hourly workers and close a significant number of plants to reverse losses in North America. International units were excluded from the filing.

The company had said it needed at least the framework of an agreement by Thursday with GM and the unions that represent most of its 34,000 U.S. hourly workers, or it would file the motions in the U.S. Bankruptcy Court in New York on Friday.

Delphi made progress on one front, reaching a basic agreement that could make up to 17,000 blue-collar workers retirement-eligible and allow another 5,000 to return to GM.

However, the United Auto Workers and the International Union of Electrical Workers-Communications Workers of America rejected Delphi's most recent wage and benefit proposal earlier this week, setting the stage for the Friday court filing.

It was not immediately clear how many hourly workers Delphi would need to operate the eight core U.S. manufacturing sites it expects to keep. However, the company said it has about 18,000 hourly and salaried workers at the plants, which would need restructuring, including some job cuts.

The motion to reject GM contracts covers about half of the North American purchase volume revenue of about $7 billion from the automaker. Delphi also has asked GM to reset terms on more than 400 other agreements.

"We need GM to cover a greater portion of the costs of manufacturing products for GM at plants that bear the burden of our legacy costs," Miller said. "We simply cannot continue to sell products at a loss."

Delphi said it plans to focus on products where it has significant competitive and technological advantages and growth prospects in the automotive sector and adjacent areas such as commercial vehicles, medical systems, aerospace and telecommunications.

Areas due to be phased out include brake and chassis systems, ****************pits and instrument panels, and door modules and latches, among others. Many noncore businesses could be successful under other ownership, the company said.

Delphi hopes to save about $450 million per year through the salaried work force cuts and other improvements.

The company also plans to freeze its U.S. pension plans for hourly and salaried workers to maintain benefits accrued. It will offer defined contribution plans for salaried workers and hourly workers who are more than seven years from retirement.

However, Delphi said it will still need outside help from the Pension Benefit Guaranty Corp. and others to extend contribution funding over a longer period.

[WishIhadatruck]

Originally Posted by tgagneguam

The nullification of contracts will only lead to no good. I'm certain the UAW will strike. And it would appear that Delphi, which supplies to Ford and Nissan as well as GM, will feel the pinch, too.

And people think GM at $21.00/share (or so) is a bargain? You aint seen nuttin' yet.

I heard somewhere in the news a few weeks back that every Toyota made in the US has Delphi parts in it.

[steverino]

The earliest the judge will rule will probably be mid-July and then he will extend it out by asking both parties to continue negotiations. In the meantime GM is shifting parts purchases to new suppliers further weakening the UAW's position, so it's to GM's advantage to see this thing drag on ( the UAW cannot legally strike until the judge throws out the contracts).

Heck, If they drag this out far enough, they can bundle this in with the Sept/Oct 2007 contract negotiations between GM & UAW

[01cavalier]

Well, this would be a godo way to reduce the strength of the unions, though I really don't like the idea of jobs leaving the country.

[GM-10]

This is the story of UAW "BPO" or "Bolt-Putter-Onner" ...some times referred to as "Skilled Laborer" or "Jobs Bank Slob"

Go "BPO"

[GM2004]

When you invest most of your money in other countries, those foreign plants will succeed. keep spouting nonsense that the US workers make too much money and when all the good paying jobs at Delphi and GM go away with public support ,your children will suffer the most as all wages will drop over time. The middle class is shrinking. GM and Delphi workers buy products in one form or another that employ you at your job.

Remember poor management and lack of focus hurt GM and Delphi not Union workers. Wake up! if not for yourself do it for your children. Everyone should have a liveable wage, not just the rich and CEO's.

GM closed plants in the US. Now today they announce that they will build a new assembly plant in Mexico. None of GM's foreign plants make money for as far back as I can remember. North American plants carry the burden of making money to keep GM floating so they can keep investing around the world instead of in the US.

[GM-10]

Originally Posted by GM2004

When you invest most of your money in other countries, those foreign plants will succeed. keep spouting nonsense that the US workers make too much money and when all the good paying jobs at Delphi and GM go away with public support ,your children will suffer the most as all wages will drop over time. The middle class is shrinking. GM and Delphi workers buy products in one form or another that employ you at your job.

Remember poor management and lack of focus hurt GM and Delphi not Union workers. Wake up! if not for yourself do it for your children. Everyone should have a liveable wage, not just the rich and CEO's.

GM closed plants in the US. Now today they announce that they will build a new assembly plant in Mexico. None of GM's foreign plants make money for as far back as I can remember. North American plants carry the burden of making money to keep GM floating so they can keep investing around the world instead of in the US.

That's nothing but horse ****************!!!

The union is corrupt.

At the very least if you don't believe me call somebody that works at Janesville or Pontiac East and ask if they think their local is on hoinest.

[Ramair-WS6]

Originally Posted by GM2004

GM closed plants in the US. Now today they announce that they will build a new assembly plant in Mexico. None of GM's foreign plants make money for as far back as I can remember. North American plants carry the burden of making money to keep GM floating so they can keep investing around the world instead of in the US.

Please dear God tell me that you do not actualy believe this.