Companies are now REQUIRED to expense stock options plans right away (APB 123 R), as of 6-15-05. So they are quickly becoming unfavorable as an incentive. Most are now just giving stock instead of options.

 

It surprises me how some people don’t understand this bonus for the execs. First, the execs are getting 26% of the income that competitive execs get, RIGHT NOW. Their income has already been cut 75% from competitive levels. It’s nearly impossible to keep people when they can get 4x more money doing the same type of work somewhere else. That’s the situation right now unless you get the bonuses that they asked for. I know I would be looking elsewhere if my pay dropped to 26% of what it is now, with an uphill battle to even turn your company around.

Now take a worker represented by the UAW. They make at least 2x the amount that their peers are, HERE IN THE USA, not oversees, doing the same type of work. That is why Delphi is trying for wage cuts for the UAW. They simply want to pay them what others in the automotive industry pay their employees for the same work.

I’m not sure if the best exec team in the world could have kept Delphi out of their current situation. There were just too many items stacked against them. High labor and health care costs, too large of an infrastructure, too many employees, unmotivated employees, being pounded down by the OEMs in terms of price, with raw material costs rising.

Dan

 

I think the big question here is: "What have they done to deserve the bounes?"

I have not heard of any improvement at Delphi and their still trying to drain the last penny out of the UAW. How about they take a pay cut like Bill Ford has and tie any pay to performance, e.i getting out of Chtpr 11.

 

General Motors made a nice tasty **** sandwich called Delphi, and now the guys working there have to eat it -- of course they're going to want a decent payback.

There's a lot of things to knock them for, but the basic structural issues which drove them into Chapter 11 were created by GM when they spun off an insolvent part of their company. Why would anyone take a job at a company that was very intentionally set up to fail?

 

That's fine. If they turn Delphi around and have a bunch of stock at $1 a share they stand to make good money. That's originally wanted to say, but I dont know the business side too well.

 

Asking them to move pay down will actually keep the jobs in the US. And they aren't asking to make them the same as they would be paid overseas. Why should someone who makes fuel injectors make 40-50k, when they make less fuel injectors a day then someone overseas? It isn't a hard job. It isn't a job that requires alot of technical When GM was making money, they weren't trying to run a tight ship and now they are paying for it.


Switch gears just for a minute. MSN released the 25 worst paying jobs. On the list was cashier. Check out the numbers here.

http://articles.moneycentral.msn.com...bs.aspx?page=2

Cashiers: Receive and disburse money in establishments other than financial institutions.

Mean annual salary: $17,200
Top-paying industry: Postal service ($50,120)
Top-paying state: Washington ($22,100)
Top-paying metro: San Francisco ($23,560)

Why is the Postal Service paying 50k AVERAGE for cashiers? Why should Delphi or GM or any other business that has a union over pay basic jobs and the majority of the general public blame the execs for wanting to reduce the cost of labor when that is a large problem. The execs already well below the avg, the bonuses they are receiving arent going to make or break this already broken company.

 

Delphi has stated they want to move most of their production overseas even if they do get their big UAW pay cut. So the debate over union versus non-union wages is largely academic at this point.

 

Not to get off Delphi but, my company just notified us(UAW employees) that we're "highly unlikely" to get a profit sharing payment for last year, signed by our CEO, then, same day, Union members found an anouncement(intranet) of profit sharing for "Non-represented" employees to share some $21 MILLION, because.."we had such a good year"...
We voted down a rediculous contract last month, and the last lines of our memo said " this should be considered as a catylist to cooperate more in the future to become more competetive"...or basically give them whatever they ask for next time around..
All of this was on the heels of an "Ethics" declaration memo a couple of days before they lied to our face!

 

Do your non-represented employees get paid the same as the UAW represented workers, or are they different types of jobs? Not a sarcastic question, I'm honestly curious.

The UAW is killing the domestic auto industry if you ask me. There is absolutely NO reason for unions anymore with the work laws that are in place today. Sorry, but that's my view. It's nothing against you personally, but the union that represents you. I've known many fine workers who are represented by the UAW. And by the way, you are not technically a UAW employee. The UAW does not may write your paycheck. The company you work for does. That's always been a pet peave of mine. Heck, I've even used the term incorrectly, but it has always irked me when I hear guys say that they work for the UAW. They don't work for the UAW, they work for Delphi, GM, Ford....

Dan

 

stereomandan,
Technically, I would agree, but if you don't sign up, you CAN'T work there, and if the UAW pulls your card, guess what?, you get fired. But I meant UAW "represented" Employees, guess I should've been clearer, thanks.
And, with all due respect, I don't know what industry you work in, but the Auto industry has no greater need in history of a Union than Now! We are systematically being de-industrialized for the sake of a quick profit. Millions of "real" manufacturing jobs are evaporating, or being restructured with HUGE cuts in pay and benefits...guess where the bulk of the middle class is/was??

If you wish to find out the "truth", you must look at all sides/facts without judging, or condemning. Not just figures put out by one side or the other, or by other media corporations, but raw data, yourself.
I can tell by you comments(full of opinion) you've already made up your mind, and it will be near impossible to change it.
Well, many are salaried, but some plants out west and south of the border are similar production jobs as we do...BUT, our output is greater than all other plants COMBINED...what does that tell you...not being cocky, just fact. We produce more than 4 times/day/shift as our nearest sister plant, with a higher First-Time-Quality rate. We make maybe a little more than 1/3 more compensation.
No hard feelings...
FYI, Honda just build its new plant JUST iniside the Indiana border near the Ohio line...why??? The area has the better, if not the BEST record for manufacturing in the country...check their own words in recent articles.

BTW, the sited the only reason for building just 40 mile over the Indiana/Ohio border was NOT to draw employees away from their sister operations...
(The same labor pool GM/Delphi pulls from...)

 

Very good reply. And thanks for keeping this a civil conversation, since I made some pretty strong accusations. I was a mechanical engineer for GM/Delphi for 6 years so that might give you a little background into the reasons for my comments. I have since moved to the chemical industry, which I have found to be a better industry to work in, although I do miss the type of people in the auto industry. They are much more my type of people, not afraid to work hands-on, and do the work themselves. On average, the auto industry has more handy-men, shade tree mechanic types, which jives better for me.

I didn't have time to look over your reply very well, but I will reply soon when I have more time to give it a good response.

Dan

 

Unbelievable....

 

Ohhhh... I dunno, probably something like better employee retention, reduced theft, more productivity, so on and so forth. Thats what good pay gets you, crap pay tends to do the opposite, not to mention intangible stuff like sucking all your hard earned money into welfare/healthcare programs because "competitive wages" for common jobs aren't really livable wages in the good ol' US of A.

 

All employees are dispensable - it's time for the Delphi board members to move on... but I know that if they did leave the company, they would each help themselves to a small fortune in any case.

How to stop corporate greed?

 

LOL You nailed it.