DELPHI Strike?

[beelzebub]

http://www.thecarconnection.com/Auto...56.A10210.html

The day of reckoning has come. With its two key unions, the UAW and IUE, rejecting demands for massive pay cuts, bankrupt auto supplier Delphi has gone back to court. It is seeking to have its labor contracts voided, while also cutting thousands of jobs. Union officials, meanwhile, are passing out picket signs and getting ready to declare a war that could result in serious collateral damage. The biggest impact would likely be felt by General Motors, whose North American plants, some analysts predict, would be shut down by parts shortages within days. But other manufacturers, including the Japanese giant, Toyota, may also be seriously impacted.

[importedtuna]

Something tells me Toyota would get through just fine. In fact they'd probably pick up market share. It's not like they have 90% domestic content in even a fraction of their vehicles anyway. The only vehicles I can imagine suffering would be the only-in-america models.

[mjd1001]

Originally Posted by importedtuna

Something tells me Toyota would get through just fine. In fact they'd probably pick up market share. It's not like they have 90% domestic content in even a fraction of their vehicles anyway. The only vehicles I can imagine suffering would be the only-in-america models.

The interesting, and sad thing about this...is an article all over the financial news yesterday about auto parts suppliers. It had to do with both the USA and Europe complaining about how China is being aggressive in the auto parts industry. Apparently some Chinese officials have come out and state that the auto parts industry is one they intend to dominate over the next few years.

What timing....when this is happening to Delphi and American auto parts makers, China is apparently ready, willing, able, and even planning on replacing them.

There might be some backlash if GM opts to go that route, but if Toyota or Honda were to quickly start getting more and more of their autoparts from the Chinese (replacing US part makers), there is little to stop them.

[actionjack]

Unions have outlived their need.

The U.S. automakers are swamped with costs that are frivalious. Benefit packages excede anything normal and are extravagant. If Delphi has to go to banko court to clean house then so be it.

[kenman923]

This could be a killer for Delphi.

[GM-10]

I hope every "Bolt-Putter-Onner" at Delphi that supports the UAW mob position gets what they deserve...for being greedy and short sighted.

A trip to Mickey Dees for an application and 50% off their happy meals.

[theVengineguy]

Originally Posted by kenman923

This could be a killer for Delphi.

I wouldn't be worried about Delphi, I would be concerned about GM's assembly lines being starved for parts. Killing production on things such as Tahoe with a high ROI wouldn't be great, especially since it's right out of the gate. GM is hard up for cash, and not fullfilling retail orders would put them further in red ink.

[JVal14]

Originally Posted by theVengineguy

I wouldn't be worried about Delphi, I would be concerned about GM's assembly lines being starved for parts. Killing production on things such as Tahoe with a high ROI wouldn't be great, especially since it's right out of the gate. GM is hard up for cash, and not fullfilling retail orders would put them further in red ink.

That's it right there. If there's a strike, it will be GM that gets screwed first. And it will likely cause GM to crash. I've read estimates of $1 billion dollars out the door every week; and that's from their cash reserves with no revenue to cover it. If there's a strike that lasts more than a week or two, GM is finished, and Ford will probably follow. Who knows what will happen to Chrysler and DCX, but a lengthy strike will essentially end domestic automaking as we know it; all because of greed and lack of foresight.

[desmo9]

I've said this before and will say it again. If the UAW is truly insistent on keeping Delphi wages in the stratosphere at GM's expense, there's an easy way to do it.

When the buyout dust settles, Delphi will have about 10K active workers to GM's 80K. If all those GM workers take a $1/hr pay cut, and GM uses all that money to subsidize the Delphi UAWers over and above the $16/hr Delphi will pay, then GM workers make about $26 and the Delphi workers about $24. The numbers could be tweaked in different ways, but the point is, with so many more GM workers to Delphi workers, GM workers only have to give up $1 to allow a Delphi worker to gain $8.

If the UAW is indeed concerned about the welfare of workers, and not just saber-rattling, then this is a surefire way to go. It enables GM to assist Delphi without GM losing any more money than they already have (to the buyout program).

Elegantly simple solution. If the GM workers are seen as so stingy as to not give $1/hr to help out their formerly-GM union brothers, then the UAW will be seen as petty. Or, they give in and problem solved. But mark my word, Wagoner's too weak to push for such a solution. He'll shell out billions to keep Delphi workers in the $22 figure until they retire, then give GM workers a $2 raise in 2007. Guaranteed. if he wasn't a feeble oaf, then he'd have stood up for some reform in the 2003 contract and we'd not be in such a crisis today ... and Delphi shareholders wouldn't have lost 100% of their investment. Thank Rick Wagoner for that.

[mike's 01ws6]

Originally Posted by GM-10

I hope every "Bolt-Putter-Onner" at Delphi that supports the UAW mob position gets what they deserve...for being greedy and short sighted.

A trip to Mickey Dees for an application and 50% off their happy meals.

I hope the same for your family.

[56 Starchief]

good idea desmo

[msupete]

Originally Posted by actionjack

Unions have outlived their need.

The U.S. automakers are swamped with costs that are frivalious. Benefit packages excede anything normal and are extravagant. If Delphi has to go to banko court to clean house then so be it.

100% agree

[GM-10]

Originally Posted by mike's 01ws6

I hope the same for your family.

Hey...I'm spent my time in school and risked capital to get where I am.

A UAW "BPO" went to a parts plant and picked up an entitlement.

I didn't rely on a wish...or any corrupt extortion group.

This is the fault of the "BPO."

UAW "BPO" leeches have killed the goose that layed golden eggs.

I HIRE PEOPLE.

[steverino]

Originally Posted by desmo9

I've said this before and will say it again. If the UAW is truly insistent on keeping Delphi wages in the stratosphere at GM's expense, there's an easy way to do it.

When the buyout dust settles, Delphi will have about 10K active workers to GM's 80K. If all those GM workers take a $1/hr pay cut, and GM uses all that money to subsidize the Delphi UAWers over and above the $16/hr Delphi will pay, then GM workers make about $26 and the Delphi workers about $24. The numbers could be tweaked in different ways, but the point is, with so many more GM workers to Delphi workers, GM workers only have to give up $1 to allow a Delphi worker to gain $8.

If the UAW is indeed concerned about the welfare of workers, and not just saber-rattling, then this is a surefire way to go. It enables GM to assist Delphi without GM losing any more money than they already have (to the buyout program).

Elegantly simple solution. If the GM workers are seen as so stingy as to not give $1/hr to help out their formerly-GM union brothers, then the UAW will be seen as petty. Or, they give in and problem solved. But mark my word, Wagoner's too weak to push for such a solution. He'll shell out billions to keep Delphi workers in the $22 figure until they retire, then give GM workers a $2 raise in 2007. Guaranteed. if he wasn't a feeble oaf, then he'd have stood up for some reform in the 2003 contract and we'd not be in such a crisis today ... and Delphi shareholders wouldn't have lost 100% of their investment. Thank Rick Wagoner for that.

Good idea, I like this. We'll see if solidarity is all talk or a reality

[GM-10]

From UAW "BPO" to "McD HGG" ...McDonald's Hamburger-Go-Getter

A Midwestern Odyssey