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Guest Josh

Angry UAW fights Delphi exec bonuses

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Guest Josh
The United Auto Workers on Tuesday filed a scathing objection to Delphi Corp.'s proposal in U.S. Bankruptcy Court to reward its executive team with bonuses and stock potentially worth more than $500 million.

In its filing, the UAW called Delphi's executive compensation program "grossly excessive" and said it would impede the union from reaching agreement with the bankrupt auto supplier on wage and job cuts for hourly workers.

The UAW's objection, along with a similar filing by the United Steelworkers of America, set the stage for a battle on the compensation package at a Nov. 29 court hearing in New York.

At issue is whether Delphi will be allowed to pay cash bonuses and award stock to top executives while the company is in bankruptcy and when it emerges from Chapter 11.

Delphi has claimed that its "key employee executive compensation" is vital to retain executives during bankruptcy, as well as to "boost employee morale" among its top management.

But the UAW, which represents 24,000 hourly U.S. workers at Delphi, blasted the program in light of Delphi Chairman Robert S. "Steve" Miller's demands for massive layoffs and huge pay and benefit cuts for union members.

"The (key employee compensation plan) destroys any notion that Delphi's bankruptcy will require shared sacrifice," the UAW said. "Designed to handsomely reward a select few with oversize payments, the KECP is decidedly the wrong message to send to Delphi's workers."

Full Story: http://www.detnews.com/2005/autosinsider/0.../A01-392012.htm

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I may disagree with the UAW on many things but they are absolutely right on this point. Since Delphi is in bankruptcy and is teetering on the financial brink it is obscene that the execs should reward themselves with massive bonuses and stock options. And this is done while expecting the workers to shoulder the paycuts while the execs seem to sacrifice very little or none at all. Pathetic

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This even pisses me off. And what will REALLY piss me off is when the workers decide to strike because of this! As justified as their protest would be, it would essentially hammer another nail in GM's coffin.

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