Delphi reaches buyout agreement with second-largest union
Delphi has announced the successful negotiation of a buyout deal for its employees who are represented by the International Union of Electrical Workers (IUEW). Approximately 8,000 employees are eligible to participate, and will receive either lump-sum payments of $35,000 or packages ranging from $40,000 to $140,000. Delphi's former parent company General Motors will be footing the bill for these buyouts, which will be in the neighborhood of several hundred million dollars. Additionally, up to 3,200 IUEW workers will be able to transfer to GM for retirement purposes.
[Source: Money/CNN]
Reader Comments (Page 1 of 1)
gbh 3:36AM (6/18/2006)
If one were to pretend that the 8000 emps will be alotted ONLY 40K each, that's 320 Million. Reality will be in the 500-600MM range. Poof! Another HALF BILLION+ in the toilet for nothing.
This is just one tiny group. The next few bunches will burn up many more billions in cash GM might use to do something really wacky and useful. Like design and build a car somebody actually wants to buy.
Bribing employees to leave jobs that no longer need to be done. Huh? If the UAW lived in the REAL world with the rest of us, they'd be let go just like anybody else would. "Sorry, downsizing and your number came up. Good luck, here's a month's salary as our VERY generous parting gift."
The more that happens with GM, the more it looks exactly like a deliberate attempt to bankrupt it so it can be put right.
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Razib Ahmed 4:37AM (6/18/2006)
Delphi is dong the right thing. The workers who are leaving the jobs may not become rich with this money but they will have something to depend on. And the existing workers will feel better too.
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caffee 5:33AM (6/18/2006)
These workers plus more than 30,000 GM employee's are leaving and severing all ties to the company, no insurance, no retirement. Some of the employee's have worked as many as 25 years with the company, they deserve the severance package. If they invest wisely it can be benificial to them in their future retirement.
With these workers leaving, and it won't be billions of dollars paid out, and the cuts that UAW workers are already agreeing to, GM will save billions each year. I know some of the Toyota sheep on here are sad to hear this, but GM is well on it's way to recovery. With these cost improvements and GM's impressive new product line there it's not surprising the stock is on the rise, only a fool would not invest in a stock that is likely to improve by 40 to 50 Percent over the next two years.
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Robert Farago 8:33AM (6/18/2006)
KBISFB
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gbh 2:06PM (6/18/2006)
Robert, ROFLMFAO. GMDW is a most entertaining rolling obit.
Caffee,
For your own financial health and sanity read the GM financials. If you can see anything but the biggest corporate failure in history coming down the pike, you have either never run a business, or you were at Enron a little too long.
Be really honest with yourself. GM continues to lose over $2000 every time it sells a vehicle. This can continue for how long?
Sure, there are some folks who have made a couple of bucks on GM's 'dead cat bounces'. Please look at at a 3 year chart of this stock. Any of the management changed, productivity improved, or, most importantly, are they selling any cars? Do the math on those buyouts - GM simply cannot pay them and have anything left to run the company.
The only product that GM has redesigned to make somewhat functional is the PR machine. It has actually spewed forth a new and improved fog bank that you are somehow not seeing through.
As I've said before and will say again - If there were ANY salvaging GM, Warren Buffett would've have bought the company, not a Caddy.
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Jeff.55 11:39AM (6/19/2006)
Anyone who thinks a miraculous turnaround is happening at GM is smoking something illegal.GM has been going down the tube for 40 years.Before you rush out and buy GM stock try reading "On a clear day you can see General Motors". Nothing has changed,the General is standing dead, a good gust of wind will knock it down.
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