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Monday, 13 October 2008
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Offshoring Delphi Jobs Hurts U.S.
Monday, 08 January 2007
Planned shutdowns enrich execs, lawyers while punishing workers.

By Ron Gettelfinger: Labor Voices

Imagine beautiful New York City: limousine service, and the finest food and beverage to satisfy a gourmet appetite with waiters responding to your every need.

This is not your typical restaurant. It's the office of a law firm, specializing in bankruptcy, which bills up to $835 an hour and charges for every minute it can possibly rack up. Those attending include Delphi's management from Troy and a bevy of attorneys, financial advisers and representatives of equity groups and hedge funds. They are salivating over the remains of a once-proud company with callous disregard for families and communities. To them, it's all about the money.

On the other side are dedicated Delphi workers and their families. Their future may include relocation, finding re-employment or a second job, and getting another mortgage to pay bills or keep their children in college.

Workers vs. high-paid lawyers

In July 2005, Steve Miller rode into town like a hired gun with the intention of driving Delphi into a self-serving, mechanical bankruptcy. He wanted to petition the court before the new bankruptcy law took effect on Oct. 18, 2005 so as not to disturb his Key Employee Compensation Plan -- valued at $388 million -- or the other perks he and his gang are enjoying. That's why Delphi's bankruptcy filing took place on Oct. 8, 2005. Not because the company was running out of money -- but because Miller was running out of time to seize company assets for his personal gain.

Miller flew in private jets and rode in chauffeured limousines while degrading the dignity of work. He insulted hourly workers in his speeches to standing ovations at country clubs when he knew nothing about the business and even less about the workers.

In November 2005, Miller told the Grand Rapids Press that a search firm called him at home in Oregon and said, "Your country needs you. Because this is not about Delphi. It's about the whole automotive industry."

"The only group that hasn't come to the party here in terms of sacrifice for the company's survival," Miller said, "is our hourly represented work force."

What CEO 'sacrifice'?

Really! This from a chief executive who has shorted Delphi's pension plan by more than $1 billion, while accepting a $3 million signing bonus and $750,000 in salary for six months on the job in 2005.

Miller was "struck" to learn that the average Delphi hourly worker in Mexico made $7,000 a year. Wow! Think how little he would have to pay if he moved those jobs from Mexico to China, Vietnam or other low-wage countries.

This could accommodate pre-bankruptcy pension deals worth millions of dollars for higher-echelon Delphi management like President Rodney O'Neal. After all, O'Neal and the others are entitled and deserving because of their great leadership. In fact, they were given $20 million in bonuses through June of 2006. Oh, wait a minute! Delphi's in bankruptcy.

Workers loyal despite insults

Meanwhile, back at the work site, Delphi workers have continued building a quality product in a safe, productive manner with no stop shipments. While Miller was insulting them, they stayed true to the customer. This is a credit to union workers and local management, who have operated under very difficult circumstances since July 1, 2005.

As bad as the situation may be, Delphi workers -- standing together as a union -- have fought together in court and at the bargaining table. Individual workers would never stand a chance against Delphi's $835-an-hour legal firepower. The United Auto Workers and all the other unions involved will continue to fight for justice for Delphi workers.

Delphi's proposed new financing arrangements are contingent upon a "consensual resolution" of labor issues. This reinforces a fact that we have made clear from the beginning: Our membership will be heard. That's why we are leaving all of our options open.

As for Miller's claim that he came to Delphi because he was told "Your country needs you": He intends to leave just 10 percent of Delphi's operations in America, with the rest sold, closed or relocated overseas. My question to him as he ponders his next victim is: Your country needs you for what?

 
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