Delphi Proposal to Cut Wages in Half!

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If American corporations have their designs on Third World wages for American workers, they'll be looking at general strikes as are seen in parts of Europe.

Golden parachutes? A general strike will bring corporate America to its senses. Executives should be pink slipped on Friday for Monday's uncompensated layoff.
If you think Mexican or Chinese auto parts will cost you less, you're sadly mistaken. You'll pay the same price for them as if American workers made those parts. Labor costs have nothing to do with your price. Profits have everything to do with your price. As labor costs go down, profits go up...the price remains the same!
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Nomen Nescio wrote:

Unfortunately, this will not happen. American workers have been doped up with corporate butt gas and Jesus Juice-they voted to put their economic well-being junior to Republican conservatives' re-election because of abortion, gambling and gay marriage. These issues brought about substantial debate, with the unofficial Republican line being that God would smite America for these abominations unless voters kept Bush, DeLay, Santorum, and other fundaloony corporate fellators in office.
Apparently preferring starvation to divine smiting, they did.
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What pray tell are you referring?
What is "Jesus Juice"?
While you are at it. What do the Democrats and Independents do wrong?
> > Nomen Nescio wrote: >> >Delphi, which supplies suspension systems for the Mini and Range Rover >> >Sport and cruise controls for Jaguar, was forced to seek bankruptcy >> >protection in a New York court after failing to win concessions with >> >unions. The United Auto Workers union resisted its attempts to cut hourly >> >wages by more than half, to about $10 or $12. >> > >> >> If American corporations have their designs on Third World wages for >> American workers, they'll be looking at general strikes as are seen in >> parts of Europe. > > Unfortunately, this will not happen. American workers have been doped > up with corporate butt gas and Jesus Juice-they voted to put their > economic well-being junior to Republican conservatives' re-election > because of abortion, gambling and gay marriage. These issues brought > about substantial debate, with the unofficial Republican line being > that God would smite America for these abominations unless voters kept > Bush, DeLay, Santorum, and other fundaloony corporate fellators in > office. > > Apparently preferring starvation to divine smiting, they did. >
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U.S. auto parts sector vulnerable to Delphi strike
Reuters / October 14, 2005
CHICAGO -- The U.S. auto parts sector faces potential supply shocks if hourly workers strike Delphi Corp., which is pursuing wage and benefit concessions from its unions, a key focus of its bankruptcy reorganization, an analyst said.
"It's a distinct possibility that a work action does take place somewhere through the course of this bankruptcy," Fitch Ratings managing director Mark Oline said.
Highlighting that possibility, Richard Shoemaker, the United Auto Workers official responsible for labor contract negotiations with Delphi, told Reuters on Thursday, Oct. 13, that a strike "certainly is one of the options that is available" to the union.
Delphi, which filed the biggest bankruptcy in U.S. automotive history Oct. 8 in New York, has said it wants to negotiate significant cost cuts with its unions and plans to submit written proposals to them next Friday.
However, Delphi also has told the U.S. Bankruptcy Court that it plans to begin the process of rejecting the agreements in mid-December if it cannot reach a deal with its unions that would significantly cut its U.S. manufacturing costs.
"We have not yet seen any supply disruptions, but it remains a key risk," Oline said. "That risk will only increase as we get closer to a date where Delphi, if unable to achieve a contract with a UAW, needs to impose a contract."
Delphi has about 50,600 employees in the United States, including 34,750 hourly workers, almost all represented by unions. Delphi had sought to negotiate wage and benefit cuts from the UAW to avoid bankruptcy, amid reports that suggested it sought cuts as deep as 63 percent.
"The extent of the wage and benefit reductions Delphi is seeking would be difficult for any union to swallow easily," Oline said, adding that Fitch is also keeping close watch on Delphi's plan for its pensions.
Smaller suppliers, which can be more vulnerable to cash flow interruptions than larger companies, may feel some pressure because of payment disruptions.
A missed customer payment could be a tipping point, but that has not happened so far with the bankruptcy cases of Collins & Aikman Corp. and Tower Automotive Inc. and appears unlikely in the Delphi case, said Neil De Koker, president of the Original Equipment Suppliers Association.
"I don't suspect there will be a rash (of bankruptcies), but there will be other Chapter 11s because the industry is still struggling," he added.
The vast majority of smaller suppliers probably have no more than a few percentage points of business with any one company and should weather the storm without having to file for bankruptcy themselves, De Koker said.
Collins & Aikman, which manufactures automotive interiors, filed for bankruptcy protection in May and Tower Automotive, an auto-body frames producer, filed for Chapter 11 in February.
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What you seem to believe to be true, is not. Foreign manufacture do not 'come to the US and build factories and vehicles.' What they do is merely assemble vehicles of imported parts, in plants build with taxpayers money via bond issues, with under paid workers, with few benefits, that were trained buy the states. To add insult to injury they take the profits they earn in this country, out of the county federal corporate tax free. American manufactures, to stay competitive, are being forced to seek lower priced parts and reduced payroll and benefit costs that are closer to those costs in the subsidized foreign operated plants.
mike hunt

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hmm i know someone who makes parts in this country namely in howell michigan for toyleta and makes good money with full benies and that is a outsourced part from toyleta , then i know a few few poeple that work for honda and make dam good money
Mike Hunter wrote:

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That may be your opinon but the fact is NO foreign manufacter that assembes vehicles or makes parts for their vehicles in the SU that offers wages or benifite anywere near equal to those offered by domestic manufactes that build vehicle and parts for domestic manufactures, peroid. Domestic manufactures also pay federal corpertate income taxes on the profit they earn in the US, Japanese coperations do not ;)
mike hunt

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u need to read at some uaw websites and get the real facts gm has not paid taxes in a few years since it always operates in the red but the upper management gets millions in base pay and stock options while they continue to send work of of our countryn and they wages you site do not exist anymore so the 18 a hour honda pays is good
Mike Hunter wrote:

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philthy wrote:

Sure get the "real facts" by going to some union web site. Maybe we can learn about good investment opportunities in Las Vegas too. At least the UAW showed that maybe they do have some braincells working this week though.
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As I said before you are entitled to you personal opinion but a search of the IRS site will prove you opion to be wrong. GM pays millions in federal corporate income taxes annually, and has for as far back as you chose to search. Ford several years ago did not pay federal taxes during one year, 2000 if I recall, because they had a loss. Union wages and benefits, in the auto industry, far exceed those of any non union plant period. ;)
mike hunt

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Mike Hunter wrote:

That isn't true Mike. I've toured the Nummi plant in Fremont California, and they do the vast majority of metal stamping on site, thus the unibody itself is completely made in the US. Most of their engines come from Toyota factories in the eastern US. Tires, batteries, wheels, windows, interiors, etc are also sourced from US factories.
The Japanese automobile makers are increasing the US content of their US vehicles all the time. There is no cost advantage to them in sourcing components from their home factories in Japan.
John
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Once again what you seem to believe to be true, is not The plant which you reference is the exception.. The reason is the GM/UAW contract requires US parts content to be at least 75%. All of Toyotas other plants are operated far differently. In case you haven't noticed Toyota has decreased the amount of US parts used in the Camry, and others merely assembled in the US, to below 40%. The first number of the VIN is no longer a '4,' it is now a '5,' and Toyota has changed its advertising to include the statement 'assembled in the US of world sourced parts.' ;)
mike hunt

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If they don't, there won't be any strikes because they won't be any jobs. The US is competing against 3rd world countries for jobs. BTW, even at a cut of 50%, the wages are far higher than the wages in 3rd world countries.
Jeff
(...)
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On 10/10/05 06:47 am Jeff tossed the following ingredients into the ever-growing pot of cybersoup:

Yes, but it also costs a lot more to live here than in those 3rd world countries -- certainly for housing, and maybe even for food. And in many 3rd world countries there is still a local market at which to buy food, whereas here one needs a car to get to the supermarket, public transport systems not being the greatest in the world.
BTW, I heard recently that the US is competing even against Canada for jobs, because there employers don't have to pay astronomical costs for health insurance for their employees.
Perce
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Wrong, the employers in Canada have to pay the Government for healthcare. Any employer be it 1 employee to thousands, has to pay for the healthcare of all employees. So don't make comments that you know nothing about.

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David wrote:

In Canada (specifically, Ontario):
Employer health tax is paid by the employer based on 1.95% of the employee's pay (it does not come out of the employees pay). There is no ceiling or limit on this tax.
Ontario health tax is a new tax (about a year old) and it does come out of the employees pay (basically between $500 and $1000 per year, scaled to pay).
WSIB (worker's comp) is also paid by the employer, and is determined by the perceived risk of the nature of the business. The lowest rates (office-type worker, computer programmers, etc) work out to about $125 to $150 per employee per year (30 cents per $100 of earnings, topping off at something like $60k). Other types of jobs (say, building demolition, construction industry, etc) pay much more.
The above numbers are for small businesses. I have no idea if they are the same as large auto companies.
One thing is for sure. In Canada, it's ->less complicated<- to run a business vs the US. Employers don't have to negotiate and deal with health insurance plans. Stuff like dental, optical, chiropractic, ok sure, but that's peanuts.
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Fact: Health care in the USA is the most expensive in the world, bar none. Next most expensive is Switzerland, at an average of about one half that of the USA.
Neither the workers nor the industrialists can help this. The freaking government could, but is too much in the pockets of the medical lobby.
Neither do Americans have the access to quality care as we have been told to believe. We brainwash ourselves, with the help of the gummint, to believe we have all the best, but that doesnt hold water.
GM is is deep caca too, and is evaluating the advisability of taking bankruptcy just behind Delphi.
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So are the airlines. Four of them went bankrupt under similar circumstances last month. The whole damned service/manufacturing industry (except for housing construction) is about to crash, due to world economic pressure. Only problem with third world wages is that they won't pay my first-world property taxes.
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You can bet it has an effect on pay.
- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Retired Shop Rat: 14,647 days in a GM plant. Now I can do what I enjoy: Large Format Photography
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On 10/10/05 11:31 am MoPar Man tossed the following ingredients into the ever-growing pot of cybersoup:

We're paying more than that (i.e., more than $1000 *USD* per *month*) for health insurance and still have significant co-pays.
In Australia (so a businessman from there was telling me recently) the most anybody pays for health insurance is 2.5% of income -- and that covers the retired and unemployed as well.
Perce
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