Delphi Bankruptcy

[August1991]

UAW leaders have said the company is looking to slash wage rates by half, to between $10 and $12 an hour.

G & M

Delphi, a division of GM until 1999, is seeking to cut pay for its 34,000 unionised workers by as much as two-thirds, to as little as $US10 an hour. One union local pointed out in a letter to its members that at those wages, they could no longer afford to buy the new cars that contained the parts they produce.

Sydney Herald (It provides a good summary.)

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There will be a lot of finger-pointing, and dark accusations that GM is avoiding pension and health liabilities. But this is largely a problem of unions being unwilling to change, and North America no longer being a good place to manufacture cars. It is quite likely that in 50 years, there will be none manufactured here at all.

In Canada, Delphi would be asking for a government bail out. I don't know this business well but I guess Magna is a competitor for Delphi. Stronach was wise to send his daughter into politics.

[Canuck E Stan]

For your interest

A little bit from what I know of Dephi,

GM had a plant in Windsor known for years as the Trim plant(made interiors for their cars).

Gm was trying desperately to close this plant(sometime in the early 80's?) and out source the work.

The Union(UAW before becoming CAW) wasn't going to let it happen. Eventually with GM's help and $$ support, Dephi took over the plant with the union still in place.

As most articles state about the reasons for Dephi demise, high cost of labour ect., Dephi just couldn't do it, precisely for the same reason General Motors wanted to dump the plant in the first place.

I believe other plants under the Dephi banner in Ontario were also part of GM,although I don't know of those.

In the contract just signed, GM Canada workers on production will make $35 an hour at the end of the contract. We're talking nuts on bolts kind of work here.

Skilled workers will make $38 an hour.

I don't believe Dephi workers got that much,but probably very close.

[Guest eureka]

$27 per hour and the whole shebang used to be a division of GM.

[Toro]

There's too much capacity in the global auto industry. I think August is correct. At some time, cars will no longer be made in North America.

I was looking at the balance sheet of GM not too long ago. The pension and healthcare liabilities alone are around $70 billion while equity is about $20 billion. I would not own the stock. There is a fair chance that GM and F will also file some time in the future.

[Shakeyhands]

Odd.........

Honda said studying plant

Ontario is a front-runner, sources say

To pick site within next 12 to 18 months

Honda has quietly started the process of considering plans for a third auto assembly plant in Ontario, according to industry sources.

The Japan-based auto giant is looking at increasing production capacity in North America before the end of the decade because current output won't be able to keep up with strong demand, sources familiar with the company say.

And the sources say Ontario, where Honda already has two booming plants in Alliston, about 80 kilometres northwest of Toronto, is a front-runner for a third plant elsewhere in central or southwestern Ontario.

http://www.thestar.com/NASApp/cs/ContentSe...tacodalogin=yes

[Argus]

$27 per hour and the whole shebang used to be a division of GM.

<{POST_SNAPBACK}>

Unless this is very skilled work I have to wonder about this level of renumeration. I think the north american auto makers let their labour costs get out of hand back when they only had to compete with each other. If you're just doing routine assemblyline work which doesn't take long to learn the pay rate should be more like half that.