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 tron_2.0
   
Location: Ohio
Gender: Male
 |  |  |  | Delphi files chapter 11, bad news for workers, good news for explorers.
< on 10/9/2005 5:13 PM >
|  | | | From DaytonDailyNews.com
Delphi: 5,700 local jobs at risk
By John Nolan
Dayton Daily News
DAYTON | Delphi Corp., the nation's largest auto parts maker, filed for Chapter 11 bankruptcy reorganization early Saturday afternoon, adding new uncertainty for the company's 5,700 area employees, business partners and local governments dependent on its tax revenues.
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The Delphi bankruptcy is one of the largest in the country's history. It includes Delphi, ranked No. 63 among the nation's Fortune 500 companies, and 38 of its U.S. subsidiaries.
Delphi, based in the Detroit suburb of Troy, has struggled to make a profit since General Motors Corp. spun it off in 1999. It lost $4.8 billion in 2004 and almost $750 million in the first half of this year.
Delphi must cut wages and benefits dramatically to its union-covered hourly employees if it is to be able to afford keeping most of its plants open and maintaining the bulk of its current product lineup, said Robert S. Miller, the restructuring specialist hired in July as the company's chairman and chief executive officer.
Miller said a substantial amount of Delphi's U.S. manufacturing operations will have to be either sold off, consolidated or phased out in order to preserve core businesses. The company makes a wide variety of parts for many of America's new cars and trucks, and its biggest customer is GM.
Some plant closings are inevitable, but no decisions have been made about which ones will stay open or be shut down, Miller said Saturday.
"What I do commit to everyone is, we will be taking a hard look at everything as to whether it is viable," he said. "Any facility that is not profitable is at risk, and that is true whether you are in Chapter 11 or Fort Knox."
Delphi has 31 plants in 13 states. The company has 185,000 employees worldwide, including about 13,000 in Dayton, Warren, Sandusky and Columbus.
Delphi in 2003 put four of its Dayton-area operations into its Automotive Holdings Group, created for its poorest-performing operations. The company's local operations also include its Thermal and Interior plant in Vandalia.
Delphi is well above what competitors pay their labor, while its pay to salaried employees is competitive and its pay to executives lags behind market rates, Miller said.
Union leaders have said they balked at Delphi's demands to reduce to $10 an hour the current union hourly wages of $26 to $30. Delphi wants to cut the overall cost of wages and benefits to a range of $14 to $19 an hour per worker from the current level of about $65 an hour for most of its hourly employees, Al Coven, president of the United Auto Workers union Local 699 in Saginaw, Mich, told the New York Times. Coven called it "a slap in the face."
Delphi filed to reorganize its U.S. operations in federal bankruptcy court in New York, where hearings are scheduled to begin next week. Non-U.S. operations were not included in the filing.
Miller said he expects the company to file a proposal later this month in court spelling out in general terms what the management thinks Delphi will need in order to become competitive. It will likely be late winter before Delphi knows what will happen with wages, benefits and pensions of its employees and retirees, Miller said.
Andy Winchek, who has worked 291/2 years at the Delphi Chassis plant on Needmore Road, said he worries whether he will have a job for another six months when he would be eligible to retire.
"I'm just worried that I didn't waste 30 years. It doesn't look good," said Winchek, 50, of Beavercreek.
Delphi's operation will now be subject to U.S. Bankruptcy Court supervision, a process that could last for months as the financially strapped company develops a plan to overhaul its finances. Delphi hopes to emerge from Chapter 11 in early to mid-2007, Miller said.
Its stock price fell to a close of $1.12 Friday on the New York Stock Exchange, as Delphi approached its self-imposed Oct. 17 deadline for a bankruptcy filing.
The company had negotiated for weeks with its former parent, GM, and its largest labor union, the United Auto Workers, on ways to help reduce Delphi's labor costs and expenses for retirees.
Those talks will continue with those parties and will involve Delphi's two smaller unions, the United Steelworkers and the International Union of Electrical Workers-Communications Workers of America, Miller said.
He met with Delphi's board on Saturday morning and said it was decided there wasn't enough time to conclude the negotiations before an Oct. 17 change in federal bankruptcy law that Delphi regards as unfavorable.
Miller said nothing will change immediately. Delphi will continue to pay its 50,000 U.S. employees and suppliers and will ship its products on schedule.
"Our people will get their paychecks and will still have their health benefits. Retirees will continue to get their checks. Any changes to that will be dealt with in an orderly way," he said.
Miller said he has met or spoken recently with union delegations from Dayton and other cities with Delphi operations. He said he is well aware of the severe effect that plant closings could have in those communities, and is sympathetic to their plight and those of Delphi employees.
"It's what keeps me awake at night, worrying about our people," he told reporters.
Delphi will finance its operations with $4.5 billion in loans, including up to $2 billion in debtor-in-possession financing from a group of lenders led by JPMorgan Chase Bank and Citigroup Global Markets Inc.
Miller has previously guided Bethlehem Steel and Morrison Knudson Corp. through bankruptcies. He said the only time he was unable to maintain the pension plan was at Bethlehem Steel, where he said the situation was considerably worse than Delphi's.
The new federal bankruptcy law that takes effect on Oct. 17 restricts "key employee" retention programs — bonuses that companies pay to executives to keep them from leaving for jobs elsewhere. Critics said those retention programs amounted to paying bonuses to the very executives who had steered a company into financial trouble.
Miller said he is aware that some union leaders are angry about the possibility that Delphi could pay executive retention bonuses, but that losing executives to other jobs could hurt Delphi's reorganization.
As for himself, Miller said he was hired out of retirement and has no contract, so he wouldn't get paid if he resigns or is fired.
Miller said he understands that the bankruptcy could hurt morale among union workers. But, he said, their best efforts will be needed to help the company serve customers through the reorganization.
Under current law, a company in Chapter 11 has 120 days in which it has the exclusive right to file a reorganization plan, and that deadline can be repeatedly extended if the bankruptcy court approves. Under the new law, this deadline for exclusive filing can only be extended up to 18 months from the date the bankruptcy was filed.
Miller said Delphi will continue supporting its technology research operations during the bankruptcy reorganization.
"If we start falling behind in our technology, then this company will be on a death spiral," Miller said.
The bankruptcy filing is likely to increase the financial strains on GM, which agreed when it spun off Delphi in 1999 to provide medical and pension benefits to Delphi retirees if the company went bankrupt before mid-2007. GM remained Delphi's top customer, buying $14 billion in parts from Delphi last year.
There will be limits to what help GM is willing to provide as Delphi tries to work out its problems, Miller said.
"General Motors has no interest whatsoever in taking back plants that were spun off to Delphi. That's not going to happen," he said.
On Saturday, Delphi said it hired Robert J. Dellinger as executive vice president and chief financial officer to help guide the company's reorganization. Dellinger, 45, served most recently in similar jobs with Sprint Corp., after a 19-year career with General Electric Co. through June 2002.
He succeeds John D. Sheehan, who had served as interim chief financial officer at Delphi since March. Sheehan will continue as chief accounting officer and controller, focusing on guiding the restructuring, Delphi said.
Plant closings are inevitable. I will keep everyone posted on plants that will close in the future.
[quote][i]Posted by yokes[/i]
I find your lack of coziness.... disturbing.
[/quote] |
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compwiz32190
Location: PA, United States
Gender: Male
| | | Re: Delphi files chapter 11, bad news for workers, good news for explorers.
<Reply # 1 on 10/12/2005 1:10 AM >
| | | | It may be good for explorers, but I would rather see all these people have work and be able to support themselves and their families (whether you support unions or not, it really doesn't matter).
edit: fixed spelling
[last edit 10/12/2005 1:11 AM by compwiz32190 - edited 1 times]
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tron_2.0
Location: Ohio
Gender: Male
| | | | Re: Delphi files chapter 11, bad news for workers, good news for explorers.
<Reply # 2 on 10/12/2005 2:41 AM >
| | | | Posted by compwiz32190
It may be good for explorers, but I would rather see all these people have work and be able to support themselves and their families (whether you support unions or not, it really doesn't matter).
edit: fixed spelling
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Oh no, I absolutely agree. Its really quite a shame that Delphi is bankrupt.
[quote][i]Posted by yokes[/i]
I find your lack of coziness.... disturbing.
[/quote] |
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ian_evil
 
Location: Providence, Rhode Island
Gender: Male
we hope you have enjoyed our program.
| | | | Re: Delphi files chapter 11, bad news for workers, good news for explorers.
<Reply # 3 on 10/12/2005 4:10 AM >
| | | | HAH! I'm a UAW union member that just got laid off too. Hot shit.
[center][b]New England Industrial Culture Online[/b]
Stencil/Graffiti, Street Art - Industrial/Exprimental Music - Urban Exploration
"[i]We are the ones you had to dehumanize.[/i]"[/center] |
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nostra-YOUPPI!
Umpire
Location: Shahre:'on Kaybec
Bonsoir et cest partie
| | Re: Delphi files chapter 11, bad news for workers, good news for explorers.
<Reply # 4 on 10/12/2005 4:15 AM >
| | | | the company i used to work for is a supplier and former division of gm employees are shaking right now due to possible future layoffs,
Montreal Expos 1969-2004 Forever Proud Lets Keep The Dream Alive |
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seicer
 
Location: New York
Gender: Male
| | | Re: Delphi files chapter 11, bad news for workers, good news for explorers.
<Reply # 5 on 10/12/2005 4:27 AM >
| | | | And while Delphi labors get a huge pay cut, the executives get a huge pay raise, plus bonuses, stock options, etc.
This bankrupcy will also affect GM. Watch the stock ticker and financial channels in the upcoming months...
Abandoned |
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nostra-YOUPPI!
Umpire
Location: Shahre:'on Kaybec
Bonsoir et cest partie
| | Re: Delphi files chapter 11, bad news for workers, good news for explorers.
<Reply # 6 on 10/12/2005 4:45 AM >
| | | | it will have and effect on all former GM divisions like EDS, also its partner ships like subaru , toyota and honda,
Montreal Expos 1969-2004 Forever Proud Lets Keep The Dream Alive |
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tron_2.0
Location: Ohio
Gender: Male
| | | | Re: Delphi files chapter 11, bad news for workers, good news for explorers.
<Reply # 7 on 10/12/2005 2:29 PM >
| | | | Yeah, I imagine this will sorta be the beginning of a type of "domino" effect for the American car manufaturers. Mainly GM.
Its really just a shame.
edit.
Read in the paper this morning that Delphi is claiming that plant closings for all of the plants in Dayton are most likely. Also, people will start getting laid off as early as Christmas.
[last edit 10/12/2005 2:31 PM by tron_2.0 - edited 1 times]
[quote][i]Posted by yokes[/i]
I find your lack of coziness.... disturbing.
[/quote] |
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nostra-YOUPPI!
Umpire
Location: Shahre:'on Kaybec
Bonsoir et cest partie
| | Re: Delphi files chapter 11, bad news for workers, good news for explorers.
<Reply # 8 on 10/12/2005 2:35 PM >
| | | | EDS is gonna lose a whack, delphi owes them a lot for services rendered, eds was first hit by enron, worldcom, now this!
Montreal Expos 1969-2004 Forever Proud Lets Keep The Dream Alive |
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atomx
Location: Brighton, ON
Gender: Male
| | | Re: Delphi files chapter 11, bad news for workers, good news for explorers.
<Reply # 9 on 10/12/2005 2:36 PM >
| | | | EDS got lots from GM here in Canada.
"Programming today is a race between software engineers striving to build bigger and better idiot-proof programs, and the Universe trying to produce bigger and better idiots. So far, the Universe is winning." - Richard Cook |
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nostra-YOUPPI!
Umpire
Location: Shahre:'on Kaybec
Bonsoir et cest partie
| | Re: Delphi files chapter 11, bad news for workers, good news for explorers.
<Reply # 10 on 10/12/2005 2:42 PM >
| | | | EDS has been hit bad in recent times by GM they are no longer the exclusive IT provider to GM and its divisions, they spread themselves too thin in terms of the other secotrs they support. its a company that used to pride itself on its low layoff rate but during Dick Browns tenor as CEO they had a lot of public and hidden layoffs like the 20000 globally in one day in september 2003. EDS relied too much on the general motors account to float them, and now with GM going with other providers in some of thier facilities EDS is losing bigtime,
Montreal Expos 1969-2004 Forever Proud Lets Keep The Dream Alive |
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Agent Skelly
 
Web Sheriff
Location: Oregon Territory
Gender: Male
Prenez De L'Avance Avec Chrysler!
| |  | | | Re: Delphi files chapter 11, bad news for workers, good news for explorers.
<Reply # 11 on 10/12/2005 3:27 PM >
| | | | Ford's parts supplier, Visteon recently they bought back to prevent them from this kind of situation.
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yokes
Location: Toronto
Gender: Male
I aim to misbehave
| | | | Re: Delphi files chapter 11, bad news for workers, good news for explorers.
<Reply # 12 on 10/12/2005 3:37 PM >
| | | | I saw this on the Buffalo news recently. Man, that town just can't catch a break.
"Great architecture has only two natural enemies: water and stupid men." - Richard Nickel |
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Agent Skelly
Web Sheriff
Location: Oregon Territory
Gender: Male
Prenez De L'Avance Avec Chrysler!
| | | | | Re: Delphi files chapter 11, bad news for workers, good news for explorers.
<Reply # 13 on 10/12/2005 4:04 PM >
| | | | Posted by SMLG
I saw this on the Buffalo news recently. Man, that town just can't catch a break.
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In the case of Buffalo, the whole town has been going down since 1900.
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yokes
Location: Toronto
Gender: Male
I aim to misbehave
| | | | Re: Delphi files chapter 11, bad news for workers, good news for explorers.
<Reply # 14 on 10/12/2005 4:10 PM >
| | | | The Death of the Great American City in action. UE gives new life to old death.
"Great architecture has only two natural enemies: water and stupid men." - Richard Nickel |
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tron_2.0
Location: Ohio
Gender: Male
| | | | Re: Delphi files chapter 11, bad news for workers, good news for explorers.
<Reply # 15 on 10/12/2005 8:24 PM >
| | | | Yup. Dayton will be out of around 5,700 jobs in the near future.
[quote][i]Posted by yokes[/i]
I find your lack of coziness.... disturbing.
[/quote] |
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