This Thursday a congressional committee will get to hear from a former Delphi engineer about the plight of the salaried retirees from GM/Delphi. I am one and this article really sums it up better than any other I have read or that I have tried to relay myself.
Obama said that it was going to be tough, that there would have to be sacrifices made by all. He was referring to the restructuring of the auto industry.
Well, I will totally disagree with him on that in part. Yes there has been some sacrifiing but not on all fronts. His hinchmen, as well as Bush's, have really stepped up to the plate. You start with Paulson and George's give away of money without rules and you end with Barrack's favorite son Geithner writing new rules and defying the law.
Tell the lady in this article that she is going to make sacrifices that are equal to all that worked for these companies. If you can do that and sleep at night then you don't have American blood running through your veins.
Equality, the UAW and IUE/CWA members got their top-up pension funds. They got a reduced healthcare program. I didn't say eliminated, I said reduced. Some call it catistrophic, I call it healthcare. They pay more upfront but their monthly premiums reflect it. They went from about $25 a month for a premium to $125 approximately. Yes, their out of pocket is double mine but if I didn't qualify for HCTC I would be paying $1600 premiums monthly. I just started paying $320. Sometime after Jan. 1 I get to find out what my pension will go to. I'm currently get less than a third what the lady in the article gets and with fewer years of service. My only advantage is I have 12 years on her. It's a jump ball situation.
GM was put into backruptcy by the government. Delphi was in bankruptcy all by themselves way ahead of the economic melt down. Both are out of bankruptcy now and Delphi is no long an American company in my books. They have a ticker symbol on Wall Street but manufacture nothing here. GM, they closed some plants, shut down dealerships and, are buying more tires from China thus shutting down an American tire supplier. Obama said this would be a taxable offense if companies took or sent work outside the US. Well, let's see, did GM get taxed for this procedure, hell no. Obama is taxing China 35% import duties, wow! He made them mad and we actually have people in congress saying that was too much. He had the opportunity to go higher.
I understand that these issues are somewhat touchy but.....These same stone throwers argued that GM should have stood up to the unions years ago and took the strikes they were threatened with. Why didn't they yell foul, tax 'em more instead of be careful, don't make them mad. What are they going to do, sell our bonds, guit buying our currency, send us more toys polluted with chemicals?
I voted for Obama and the jury is still out as to whether that was a wise choice. It wasn't his opponent that I voted against, it was the party. Way too radical. Heck, Cheney doesn't know he's out of office yet.
Read: http://www.nytimes.com/2009/10/27/business/27delphi.html?_r=1&hp
Showing posts with label bankruptcy. Show all posts
Showing posts with label bankruptcy. Show all posts
Tuesday, October 27, 2009
Thursday, October 8, 2009
Delphi, GM, Out of Bankruptcy
I guess it's official, Delphi, my former employer, is out of bankruptcy. Four years.
They really went into their final approach this past February when they asked the courts to let them cancel the health care and life insurance of their salaried workers. We, I'm one of them, received a Fed-Ex package almost to the day of their IPO status of 2/5/99. We were given 30 days to make life changing decisions, to find alternate plans and policies for our health care, life insurance and extended care coverage. Those of us that had pre-existing conditions had no choice. Pay the full bill, which there are many who already pay these high fees but we weren't use to this. Some would never have life insurance again, pre-existing conditions make this financially impossible to have. We were never asked to pay more if needed, the bill just went up. But to go up almost 1500% in your budget, in one month, was very hard to handle. We were promised, in a handshake agreement, that we would have these benefits until we reached 65 when medicare kicks in.
We were told we would have supplemental pension monies until we turned 62 and then you would file for social security. On July 31 Delphi and the PBGC decided that the pension should be in the hands of the PBGC which means those not old enough to draw SS were going to loose even more, maybe as much as 50% of their income. Someone that was anywhere from 55 to 62 was going to have a problem. Most of those that were in the youngest group were not ready to retire. They were forced out and hadn't found work yet. This is the economy from hell. They could possibly have kids in college, mortgages, trying to find healthcare, etc.
Well, those that were in charge fared very well with their special retirement packages. They were charged with crimes but got off with slaps on the wrist. They have large homes which are in their wives names. They have even had the nerve to ask the courts to have Delphi pay for their legal fees. They requested approximately 10 million dollars in aid.
Now Delphi is out of bankruptcy, most likely with the help of taxpayer monies through GM. Now, we have an American company with no manufacturing plants in the United States. They will be supplying GM with parts for the cars that are made stateside and off shore. Unfortunately, more and more of the GM brands are being made off shore. Unfortunately GM has even helped some of our tire companies close or have lay-offs this year because they have chosen to buy foreign (Chinese) tires to put on their automobiles. Thank you Mr. and Mrs. Taxpayer.
If you want to know who or what Delphi is, google Delco Products. Home of the first shock absorber. Founded in Dayton, OH. This was their name before being split off from GM. They were also Harrison Radiator, the maker of the automobile air conditioner. Inland, two locations in the Dayton area, made the interiors and safety devices for GM. Delco Moraine supplied the brakes. Fractional electric motors as well as electromotive motors for the railroad trains were made in Kettering, OH, another Dayton suburb. Other suspension parts came from Michigan and the list goes on and on. Delco was a big part of GM.
They really went into their final approach this past February when they asked the courts to let them cancel the health care and life insurance of their salaried workers. We, I'm one of them, received a Fed-Ex package almost to the day of their IPO status of 2/5/99. We were given 30 days to make life changing decisions, to find alternate plans and policies for our health care, life insurance and extended care coverage. Those of us that had pre-existing conditions had no choice. Pay the full bill, which there are many who already pay these high fees but we weren't use to this. Some would never have life insurance again, pre-existing conditions make this financially impossible to have. We were never asked to pay more if needed, the bill just went up. But to go up almost 1500% in your budget, in one month, was very hard to handle. We were promised, in a handshake agreement, that we would have these benefits until we reached 65 when medicare kicks in.
We were told we would have supplemental pension monies until we turned 62 and then you would file for social security. On July 31 Delphi and the PBGC decided that the pension should be in the hands of the PBGC which means those not old enough to draw SS were going to loose even more, maybe as much as 50% of their income. Someone that was anywhere from 55 to 62 was going to have a problem. Most of those that were in the youngest group were not ready to retire. They were forced out and hadn't found work yet. This is the economy from hell. They could possibly have kids in college, mortgages, trying to find healthcare, etc.
Well, those that were in charge fared very well with their special retirement packages. They were charged with crimes but got off with slaps on the wrist. They have large homes which are in their wives names. They have even had the nerve to ask the courts to have Delphi pay for their legal fees. They requested approximately 10 million dollars in aid.
Now Delphi is out of bankruptcy, most likely with the help of taxpayer monies through GM. Now, we have an American company with no manufacturing plants in the United States. They will be supplying GM with parts for the cars that are made stateside and off shore. Unfortunately, more and more of the GM brands are being made off shore. Unfortunately GM has even helped some of our tire companies close or have lay-offs this year because they have chosen to buy foreign (Chinese) tires to put on their automobiles. Thank you Mr. and Mrs. Taxpayer.
If you want to know who or what Delphi is, google Delco Products. Home of the first shock absorber. Founded in Dayton, OH. This was their name before being split off from GM. They were also Harrison Radiator, the maker of the automobile air conditioner. Inland, two locations in the Dayton area, made the interiors and safety devices for GM. Delco Moraine supplied the brakes. Fractional electric motors as well as electromotive motors for the railroad trains were made in Kettering, OH, another Dayton suburb. Other suspension parts came from Michigan and the list goes on and on. Delco was a big part of GM.
Monday, July 6, 2009
Cold day in hell for the auto industry
This isn't all about GM going down and thousands of individuals and other smaller companies loosing out. If so, the courts, the Obama administration, et. al. would be looking at the thousands of individuals, union or non-union that are going to suffer from within the company. I don't have the ability to have the exact number but these political heads could give you one, real or fictional, if they wanted to.
Before GM spun off Delco Products to become Delphi, a company just about as old as GM and made up of some of GM's founding fathers, they (GM) had retirees that retired under the GM umbrella. They retired as Delco Products employees, a Division of GM. They were from that other union, the IUE, the one that everyone forgot but is the one that gave up more concessions than any other union in GM's history. Now GM is saying that they don't have an agreement with the IUE/CWA because they don't have any active working members. Well, just how stupid do they think people are. I didn't work there but it was in my community, the GM truck plant in Moraine, OH. Closed in December of 2008 and was the last active IUE covered plant. Note here, the CWA part merged in with the IUE after the IPO of Delphi.. The truck plant received award after award and GM even spent huge sums of money putting in the latest and greatest paint facility. GM closed it for a UAW facility. One that did not have all the credentials, just THE union of choice backing it. You see, there has always been a war of unions in the GM family and the prevailing God Father is the UAW. The ironic thing here is that the hourly members of Delphi, the IUE/CWA union members were taken BACK into GM. I'm sure that the membership as a whole had no idea as to what their next fate was. GM and the UAW reached a VEBA agreement and the IUE/CWA was left out in the cold. GM accomplished what appears to have been the plan in the beginning, to divest itself of the unions. UAW healthcare is now covered by a VEBA plan and the IUE/CWA doesn't exist in their minds. The only thing left is the IUE/CWA pensions being left underfunded and then not funded and then voluntary move to the PBGC like the salaried retirees are getting from Delphi.
If there is truly five year business plans in corporations then one only needs to be in touch with what happened at Delphi starting in 1999. To know and understand how the equipment was being brought in for the next generation of automobile. Seven or eight pieces of equipment would make approximately 1,800 parts in a shift, replacing on piece of equipment that would make up to 5,000 pieces in a shift. Difference besides the obvious, you could pick the seven or eight pieces up and put each one in the back of a heavy duty pickup truck and send them across the boarder. The shock equipment that was in the Woodman Dr., Kettering, OH plant is in Mexico today. The equipment that made struts is still there in plant 14 but is now owned by Tenneco. GM, on all fronts, looks as if it was divesting itself of Delco by forming Delphi but yet they held on to them with buying leverage and other means to the point that they got what they wanted or will get what they want if the courts have their way. GM will be union free so to speak, divested of a company that they only wanted part of and the biggest part....no "legacy" costs to human beings. These aren't stock holder being screwed, they are the real equipment of these corporations. They have blood and sweat running in and out of them instead of electricity and hydraulic fluid. They aren't made of steel but of flesh. They don't breakdown and get repaired with the twist of a wrench or a screw driver, no they get cancer from working around the chemicals that they aren't told about until OSHA or some other form of government warns them. They suffered when the temperatures reach levels over 100 degrees plus day after day in the summer and sometimes year round. They have lost fingers, hands, eyesight and hearing because safety wasn't number one for so many years. And yet, they are looked upon with envy one minute and thrown out as disposable assets the next. No obligation. You got paid. We're keeping our perks. Sorry about your losses.
The non-union parts of Delphi and GM are the salaried individuals. The union parts are of course the IUE/CWA members. GM, the courts, the government all say sorry for your luck or I am here to help protect your rights. The courts say sorry for your luck, the company had a contractual agreement with the union, YOU are nothing more than a "moral obligation". The courts can't make GM or Delphi have morals. There was a time when a handshake was a contract, that's what the salaried people had, a handshake. They would be given dream sheets annually that would show what they received in salary compensation, vacation time, holiday time, their healthcare package and a scenario of what their pension would look like if they continued to put into their 401k along with their GM/Delphi sponsored pension amounts. Now, with the help of the courts, the salaried scum do not have their healthcare and in some cases of this very large entity, GM/Delphi, may loose part of their pension to the PBGC. Let me say here that not all are in this boat. There is language, very similar to the masses of salaried individuals, that gives upper executives everything for life. After making millions a year, they loose nothing. Some of the execs that lead Delphi down the path of failure but really promoted the IPO and the quality of the company as a whole, are even asking the courts to have Delphi pay nearly $10,000,000 for THEIR legal fees. The way it looks is that GM will pay it with the taxpayer help. I was salaried and I had to sign permits for parts of the plant or a piece of equipment was tested for safeness to enter. IF, for some reason the meter was reading wrong and something happened and one of the employees had an accident I was told that I could be sued by him or his family and that I was on my own. I lost many sleepless nights over this worrying. that I could loose everything I worked for.
I agree with this paragraph from the article A Step Closer To Exiting Bankruptcy "That arrogance was a big factor in GMs long slide into bankruptcy. It's also a problem the executives have been working to break down for years. CEO Fritz Henderson knows the change has to continue. GM must become more nimble, responsive to customers, and its leaders must be willing to admit they don't have all the answers." As a former GM-Delco-Delphi salaried employee I have heard these same words time and time again. It is only the last thirteen words that are new. Bringing the Springhill, TN Saturn plant on was a big thing at that time. The union had fought for the right to stop the line to fix a problem in the assembly process. That is why the Saturn was such a dependable vehicle and they could show commercials of taking care of a customer in Alaska where there was no dealership. It gave you the idea that you would be treated like a Rolls-Royce customer.There is the story that a customer tried to think RR for fixing a problem during the night and RR responded that they had never had a problem. He must have been mistaken. I'm not sure what Mr. Henderson means by nimble, do we go back to Iacocca's days and bring a platform to market in months instead of years? Responsive to customers, well they still have the Buick of the older generation and I must say that I am glad they don't have a Cube in their arsenal. The question about the word responsive is, who wanted the SUV's, the public or the manufacturers. VERY profitable on the one side and American big on the other. I remember the noise when they did away with rear wheel drive. After all, rear wheel drive, big motors and huge tanks is as American as you can get.
Bottom line, I can't feel for GM, or any of the other corporations that treat their employees like they were never there unless they made the big bucks. I put 22 years in, all but 2 were with GM, until my heart gave out. Too many hours, twelve plus a day on the floor in the heat and noise? In one year alone the only days I got off were my vacation days and those worked averaged over ten a day. I had a couple of twenty-four hour days to get particular pieces of equipment back up and running. The thanks I got was a letter on Feb. 5th of this year stating that Delphi was filing to dump my healthcare. I was never asked if I would pay more of the monthly fee. I went from $143 a month to $1495 a month and the loss of life insurance as well in the blink of an eye or thirty days, which ever comes first. I also do not trust any politician after this year. There is NO protecting of our pensions going on. The good 'ol boys network will get what they want. After being treated like we, the former GM/Delphi retirees have been treated one tends to start getting involved, or at least should, and discovering things they wish they hadn't. Start with names like Henry Paulson, Robert Rubin, John Thain, Robert Steele, Joshua Bolten, Mark Patteson, Ed Liddy, Jim Cramer, Harry B. Wilson and see what they have in common. I'll give you a hint, Goldman Sachs. The last one is the governments lead counsel in the GM bankruptcy case. There will be an IPO for the NEW GM, will Goldman Sachs get to sell it? Will all those unfortunate retirees get anything for their years of service? Someone is going to make money and it won't be the little forgotten true heroes of the corporate world. It will again be the brotherhood of the corporate world.
Matt Taibii's article in Mad Magazine or you can find it on the net in pdf form should be read by all.
Before GM spun off Delco Products to become Delphi, a company just about as old as GM and made up of some of GM's founding fathers, they (GM) had retirees that retired under the GM umbrella. They retired as Delco Products employees, a Division of GM. They were from that other union, the IUE, the one that everyone forgot but is the one that gave up more concessions than any other union in GM's history. Now GM is saying that they don't have an agreement with the IUE/CWA because they don't have any active working members. Well, just how stupid do they think people are. I didn't work there but it was in my community, the GM truck plant in Moraine, OH. Closed in December of 2008 and was the last active IUE covered plant. Note here, the CWA part merged in with the IUE after the IPO of Delphi.. The truck plant received award after award and GM even spent huge sums of money putting in the latest and greatest paint facility. GM closed it for a UAW facility. One that did not have all the credentials, just THE union of choice backing it. You see, there has always been a war of unions in the GM family and the prevailing God Father is the UAW. The ironic thing here is that the hourly members of Delphi, the IUE/CWA union members were taken BACK into GM. I'm sure that the membership as a whole had no idea as to what their next fate was. GM and the UAW reached a VEBA agreement and the IUE/CWA was left out in the cold. GM accomplished what appears to have been the plan in the beginning, to divest itself of the unions. UAW healthcare is now covered by a VEBA plan and the IUE/CWA doesn't exist in their minds. The only thing left is the IUE/CWA pensions being left underfunded and then not funded and then voluntary move to the PBGC like the salaried retirees are getting from Delphi.
If there is truly five year business plans in corporations then one only needs to be in touch with what happened at Delphi starting in 1999. To know and understand how the equipment was being brought in for the next generation of automobile. Seven or eight pieces of equipment would make approximately 1,800 parts in a shift, replacing on piece of equipment that would make up to 5,000 pieces in a shift. Difference besides the obvious, you could pick the seven or eight pieces up and put each one in the back of a heavy duty pickup truck and send them across the boarder. The shock equipment that was in the Woodman Dr., Kettering, OH plant is in Mexico today. The equipment that made struts is still there in plant 14 but is now owned by Tenneco. GM, on all fronts, looks as if it was divesting itself of Delco by forming Delphi but yet they held on to them with buying leverage and other means to the point that they got what they wanted or will get what they want if the courts have their way. GM will be union free so to speak, divested of a company that they only wanted part of and the biggest part....no "legacy" costs to human beings. These aren't stock holder being screwed, they are the real equipment of these corporations. They have blood and sweat running in and out of them instead of electricity and hydraulic fluid. They aren't made of steel but of flesh. They don't breakdown and get repaired with the twist of a wrench or a screw driver, no they get cancer from working around the chemicals that they aren't told about until OSHA or some other form of government warns them. They suffered when the temperatures reach levels over 100 degrees plus day after day in the summer and sometimes year round. They have lost fingers, hands, eyesight and hearing because safety wasn't number one for so many years. And yet, they are looked upon with envy one minute and thrown out as disposable assets the next. No obligation. You got paid. We're keeping our perks. Sorry about your losses.
The non-union parts of Delphi and GM are the salaried individuals. The union parts are of course the IUE/CWA members. GM, the courts, the government all say sorry for your luck or I am here to help protect your rights. The courts say sorry for your luck, the company had a contractual agreement with the union, YOU are nothing more than a "moral obligation". The courts can't make GM or Delphi have morals. There was a time when a handshake was a contract, that's what the salaried people had, a handshake. They would be given dream sheets annually that would show what they received in salary compensation, vacation time, holiday time, their healthcare package and a scenario of what their pension would look like if they continued to put into their 401k along with their GM/Delphi sponsored pension amounts. Now, with the help of the courts, the salaried scum do not have their healthcare and in some cases of this very large entity, GM/Delphi, may loose part of their pension to the PBGC. Let me say here that not all are in this boat. There is language, very similar to the masses of salaried individuals, that gives upper executives everything for life. After making millions a year, they loose nothing. Some of the execs that lead Delphi down the path of failure but really promoted the IPO and the quality of the company as a whole, are even asking the courts to have Delphi pay nearly $10,000,000 for THEIR legal fees. The way it looks is that GM will pay it with the taxpayer help. I was salaried and I had to sign permits for parts of the plant or a piece of equipment was tested for safeness to enter. IF, for some reason the meter was reading wrong and something happened and one of the employees had an accident I was told that I could be sued by him or his family and that I was on my own. I lost many sleepless nights over this worrying. that I could loose everything I worked for.
I agree with this paragraph from the article A Step Closer To Exiting Bankruptcy "That arrogance was a big factor in GMs long slide into bankruptcy. It's also a problem the executives have been working to break down for years. CEO Fritz Henderson knows the change has to continue. GM must become more nimble, responsive to customers, and its leaders must be willing to admit they don't have all the answers." As a former GM-Delco-Delphi salaried employee I have heard these same words time and time again. It is only the last thirteen words that are new. Bringing the Springhill, TN Saturn plant on was a big thing at that time. The union had fought for the right to stop the line to fix a problem in the assembly process. That is why the Saturn was such a dependable vehicle and they could show commercials of taking care of a customer in Alaska where there was no dealership. It gave you the idea that you would be treated like a Rolls-Royce customer.There is the story that a customer tried to think RR for fixing a problem during the night and RR responded that they had never had a problem. He must have been mistaken. I'm not sure what Mr. Henderson means by nimble, do we go back to Iacocca's days and bring a platform to market in months instead of years? Responsive to customers, well they still have the Buick of the older generation and I must say that I am glad they don't have a Cube in their arsenal. The question about the word responsive is, who wanted the SUV's, the public or the manufacturers. VERY profitable on the one side and American big on the other. I remember the noise when they did away with rear wheel drive. After all, rear wheel drive, big motors and huge tanks is as American as you can get.
Bottom line, I can't feel for GM, or any of the other corporations that treat their employees like they were never there unless they made the big bucks. I put 22 years in, all but 2 were with GM, until my heart gave out. Too many hours, twelve plus a day on the floor in the heat and noise? In one year alone the only days I got off were my vacation days and those worked averaged over ten a day. I had a couple of twenty-four hour days to get particular pieces of equipment back up and running. The thanks I got was a letter on Feb. 5th of this year stating that Delphi was filing to dump my healthcare. I was never asked if I would pay more of the monthly fee. I went from $143 a month to $1495 a month and the loss of life insurance as well in the blink of an eye or thirty days, which ever comes first. I also do not trust any politician after this year. There is NO protecting of our pensions going on. The good 'ol boys network will get what they want. After being treated like we, the former GM/Delphi retirees have been treated one tends to start getting involved, or at least should, and discovering things they wish they hadn't. Start with names like Henry Paulson, Robert Rubin, John Thain, Robert Steele, Joshua Bolten, Mark Patteson, Ed Liddy, Jim Cramer, Harry B. Wilson and see what they have in common. I'll give you a hint, Goldman Sachs. The last one is the governments lead counsel in the GM bankruptcy case. There will be an IPO for the NEW GM, will Goldman Sachs get to sell it? Will all those unfortunate retirees get anything for their years of service? Someone is going to make money and it won't be the little forgotten true heroes of the corporate world. It will again be the brotherhood of the corporate world.
Matt Taibii's article in Mad Magazine or you can find it on the net in pdf form should be read by all.
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