Delphi, the worlds largest Automotive parts supplier is demanding massive cuts from its UAW workforce or threatening to file for bankruptcy. With 185,000 employees worldwide, Delphi has targeted its 24,000 UAW workers, demanding pay cuts of 60+%, benefit cuts of 77% and the right to close any plant any time it wishes.
CEO, Robert S. (Steve) Miller, of Federal Mogul and Bethlehem Steel bankruptcies fame, told white collar worker to stay focused and do their job. The consensus is that Miller will march Delphi into bankruptcy regardless of UAW actions in order to shed pension obligations which are underfunded by $14.5 Billion and other debt of about $6 Bilion. For Miller this is Standard Operating Procedure. Expect Delphi file Chapter 11 next week.
Even if the 24,000 UAW workers give in to the demands of Delphi, half of them will lose their jobs anyway as many of the Delphi plants will be closed and the worked shipped overseas. The hardest hit state will be Michigan, of course. Currently home to 14,000 Delphi UAW Employees, I'm sure we'll lose at least half of those jobs, then the reductions in pay, etc. will have the effect of a 11,000 worker layoff. No to mention the trickle down effect at all the local suppliers to Delphi.
But of course, Michgan was a "Blue" State so nobody will pay much attention and we'll hear the usual excuses that UAW workers are inefficient, unproductive and deserve their fate. Welcome to the 21st Century and Visteon is soon to follow.
Detroit News Article