Judge Allows Delphi To End Salaried Retiree Benefits.

bobdoering

Stop X-bar/R Madness!!
Trusted Information Resource
#1
The Wall Street Journal (2/25, McLaughlin) reports, "Delphi Corp., the largest parts supplier to General Motors Corp., won court approval to terminate health benefits for thousands of retired salaried employees after arguing the move is critical to keeping its slow-going bankruptcy reorganization afloat." The approval to end "the benefits to about 15,000 people allows the auto supplier, which has been operating under Chapter 11 protection since late 2005, to wipe out more than $1 billion in liabilities and $70 million in annual cash costs."

The AP (2/25) notes, however, that the bankruptcy judge who "tentatively approved Delphi Corp.'s request to stop paying for its salaried retirees' health and life insurance...left the door open for some former employees to be excluded from the move."


From SME Daily Executive Briefing
 
Elsmar Forum Sponsor

Wes Bucey

Prophet of Profit
#2
The Wall Street Journal (2/25, McLaughlin) reports, "Delphi Corp., the largest parts supplier to General Motors Corp., won court approval to terminate health benefits for thousands of retired salaried employees after arguing the move is critical to keeping its slow-going bankruptcy reorganization afloat." The approval to end "the benefits to about 15,000 people allows the auto supplier, which has been operating under Chapter 11 protection since late 2005, to wipe out more than $1 billion in liabilities and $70 million in annual cash costs."

The AP (2/25) notes, however, that the bankruptcy judge who "tentatively approved Delphi Corp.'s request to stop paying for its salaried retirees' health and life insurance...left the door open for some former employees to be excluded from the move."


From SME Daily Executive Briefing
Bummer! Spend a lifetime serving the master and at a time when you REALLY need a break, he spits in your eye and says, "HAH! You were a fool for believing anything we said to get you to work for us and make our top executives lots and lots of money!" Remember - these "salaried employees" are NOT the guys who were pulling down 6 and 7 figure salaries - these were the poor slobs who worked long hours for straight salary and zero overtime pay!

:topic:In my view,there should be a "clawback law" which allows the bankruptcy judge to reach back fifty years and take money from all those executives who were earning 200 and 300 times what the working stiffs were getting.
 

smryan

Perspective.
#3
:topic:In my view,there should be a "clawback law" which allows the bankruptcy judge to reach back fifty years and take money from all those executives who were earning 200 and 300 times what the working stiffs were getting.
I like that notion. In my "if I ran the world" scenario there would be a law capping the max difference between the lowest paid and highest paid persons in any organization to 40-50k. More sharing the wealth.

Back on topic - do the retired employees have a legal leg to stand on for a class action suit for breech of contract or something?
 
W

wmarhel

#4
I like that notion. In my "if I ran the world" scenario there would be a law capping the max difference between the lowest paid and highest paid persons in any organization to 40-50k. More sharing the wealth.
Sorry, but no thanks. It may sound good in theory, but can you show evidence where any application of this method has been successful in the long term? I've seen extremes at both ends, where people were paid too much; and where people haven't been paid enough. A blanket practice like you mention wouldn't solve anything.

The wealth is out there, some people just need to be willing to go out and get it. Oh yeah, it might require some sacrifices along the way; but why would anyone expect that? :sarcasm:

Back on topic - do the retired employees have a legal leg to stand on for a class action suit for breech of contract or something?
There is probably little they can do since it has gone through the legal system and been approved by it. A class action lawsuit would likely make the lawyers rich.

Wayne
 

Marc

Fully vaccinated are you?
Leader
Admin
#5
Sorry, but no thanks. It may sound good in theory, but can you show evidence where any application of this method has been successful in the long term?
Can you cite evidence where it hasn't been successful in the long run?
 

SteelMaiden

Super Moderator
Trusted Information Resource
#6
I'm going to take an ugly and unpopular stance. Time and time again we have seen where retirement benefits have broken or nearly broken the backs of various industries. My industry for example, is incredibly different today because so many companies went broke say 6-7 years ago because of legacy costs. People retire healthier, earlier, life expectancies are longer, costs are higher. When does it behoove us, as individuals, to begin to be responsible for our own futures? Should we not begin to think what we will need to have for ourselves and begin planning for it instead of expecting to live via the company forever after we retire? Recent history shows us that "the company" might not survive as long as we do. Companies, imho, should begin to teach people to plan for their futures, as well as teach them to make money for the company.:2cents:
 

bobdoering

Stop X-bar/R Madness!!
Trusted Information Resource
#7
I'm going to take an ugly and unpopular stance. Time and time again we have seen where retirement benefits have broken or nearly broken the backs of various industries. My industry for example, is incredibly different today because so many companies went broke say 6-7 years ago because of legacy costs. People retire healthier, earlier, life expectancies are longer, costs are higher. When does it behoove us, as individuals, to begin to be responsible for our own futures? Should we not begin to think what we will need to have for ourselves and begin planning for it instead of expecting to live via the company forever after we retire? Recent history shows us that "the company" might not survive as long as we do. Companies, imho, should begin to teach people to plan for their futures, as well as teach them to make money for the company.:2cents:
The big picture is that it is robbing Peter to pay Paul - it has to come from somewhere. If the companies lost out because people retire healthier, earlier, life expectancies are longer, costs are higher - then individual's crystal balls would likely not be that much clearer (especially across the scope of all employees - not just the frugal, hardscrabble ones.) You also would have hoped (apparently these things don't work that way anymore) that there is a bulk cost benefit in numbers.

But, without a doubt, at least it WILL clear the company books. And that may be a level playing field to smaller or newer companies that have less legacy cost.
 

Jim Wynne

Leader
Admin
#8
I'm going to take an ugly and unpopular stance. Time and time again we have seen where retirement benefits have broken or nearly broken the backs of various industries. My industry for example, is incredibly different today because so many companies went broke say 6-7 years ago because of legacy costs. People retire healthier, earlier, life expectancies are longer, costs are higher. When does it behoove us, as individuals, to begin to be responsible for our own futures? Should we not begin to think what we will need to have for ourselves and begin planning for it instead of expecting to live via the company forever after we retire? Recent history shows us that "the company" might not survive as long as we do. Companies, imho, should begin to teach people to plan for their futures, as well as teach them to make money for the company.:2cents:
It's certainly time for people to stop trusting their employers for anything, but that doesn't address the issue at all. Companies made promises, and based on those promises employees believed that they were making sound decisions about their futures by going to work for the companies that made the promises.
 

SteelMaiden

Super Moderator
Trusted Information Resource
#9
I guess part of my part is that not only can we continue to believe that promises will always be kept (as is painfully obvious), the business community needs to learn a lesson here as well and quit making promises that might not be able to be kept.
 
S

somerqc

#10
Although I am no rookie, I am still quite young. My career started after the recession of the early 90's. I have NEVER trusted a company for any part of my future.

I will give whatever company I work for 110% of my effort while I am employed by them, but I expect nothing more. If I get it great, but, I don't count on it beyond tomorrow. I give the effort - you pay me what we agreed that my renumeration would be. Simple.

I believe this is part of the difficult shift from one generation to the next.

I wish we had many of the benefits that the previous generations had access to (re: my father is making as much as me in retirement thanks to a very generous retirement plan that he now gets paid by); however, that is not reality so to expect it is foolish. I have been saving for retirements since my late 20's. This gives me 30 years to build a nice retirement fund. Should be possible.

Treat your future/career like a business and plan accordingly. This isn't going away anytime soon so we might as well get used to it.

:2cents:

John
 
Thread starter Similar threads Forum Replies Date
M BOK of Internal Auditor of ISO/TS 16949 - How to Judge the Knowledge of an Auditor IATF 16949 - Automotive Quality Systems Standard 2
S Can you help with a simple SPC sheet to judge if inspection is Good / No Good ? Capability, Accuracy and Stability - Processes, Machines, etc. 8
R How to judge the result of Cord Bending Test? IEC 60601 - Medical Electrical Equipment Safety Standards Series 9
Marc Judge denies request to knock Spamhaus offline After Work and Weekend Discussion Topics 2
B Judge Orders Ford To Recall Cars World News 1
G Does FDA allows remote approvals of quality documentation. Is there any specific guidance on signing any quality records remotely? Document Control Systems, Procedures, Forms and Templates 1
J Does Pakistan Medical Device Import License allows parallel import? Other Medical Device Regulations World-Wide 0
Marc Facebook vulnerability allows hacking of iPhone and Android app After Work and Weekend Discussion Topics 1
B How maintain an AS9100 QMS that allows us to produce non-AS product AS9100, IAQG, NADCAP and Aerospace related Standards and Requirements 5
Marc CrossOver public beta: Allows Windows apps to run without Windows on Intel-based Macs After Work and Weekend Discussion Topics 0
D Gage R&R .xls spreadsheet in Excel that allows you to set up experiments Excel .xls Spreadsheet Templates and Tools 9
P May I combine the Process Audit and Product Audit into Delphi's LSR? Customer and Company Specific Requirements 3
P Delphi CSR 03.2010 (Customer Specific Requirements) Customer and Company Specific Requirements 3
Stijloor GM to take back 5 Delphi plants, contract details show World News 0
Q Checklist for Customer Specific Requirements (CSRs) for Delphi/Visteon/Chrysler/GM IATF 16949 - Automotive Quality Systems Standard 2
S GM buys Delphi steering operations World News 1
K New Delphi CSR (Customer Specific Requirements) Customer and Company Specific Requirements 1
Douglas E. Purdy Delphi CSR (Customer Specific Requirements) and LPA Requirements Customer and Company Specific Requirements 10
Douglas E. Purdy Delphi CSR (Customer Specific Requirements) and LPAs (Layered Process Audit) IATF 16949 - Automotive Quality Systems Standard 3
Marc Delphi Workers Accept Pay Cuts World News 0
Marc Delphi to close, sell most plants under deal World News 0
J Bad news for Spain. Delphi anounced yesterday the closing of Delphi Cadiz Plant World News 17
J Delphi Level Scheduling Logistics powerpoint .ppt Course Customer and Company Specific Requirements 1
Marc Delphi, GM and UAW reach broad buyout deal World News 1
T Does Delphi's requirement for layered process audits only apply to their products? Process Audits and Layered Process Audits 15
Marc Delphi, GM Reach Deals With UAW on Hourly Worker Buyouts World News 1
Marc As Delphi delays, losses grow, pensions shrink, move to US$10/hr hourly wages World News 7
C Delphi latest released on CSR dated Nov 22, 2005 and again Feb 1,2006 Customer and Company Specific Requirements 3
Wes Bucey Delphi pulls trigger - Bankruptcy! World News 32
Marc Delphi may file for bankruptcy World News 4
Marc Lawsuit says Delphi faked sales to improve financial reports World News 0
Wes Bucey Delphi - bankruptcy strongarm tactic? World News 9
C Delphi Customer Specific Requirement (CSR) - Delphi releases their updated version Customer and Company Specific Requirements 4
Raffy Delphi 5-Why's - Is this like an 8D Of Problem Solving? Nonconformance and Corrective Action 14
Q TS 16949 Certification date requirement of suppliers by Bosch, Delphi & Siemens IATF 16949 - Automotive Quality Systems Standard 6
Q Visteon & Delphi Customer Specific Requirements Checklist Customer and Company Specific Requirements 4
R TS-16949 and SubContract Manufacturing - Both Tier 1 & 2 to GM, FORD, Delphi, Visteon IATF 16949 - Automotive Quality Systems Standard 4
Q Delphi Problem Solving Survey IATF 16949 - Automotive Quality Systems Standard 0
Howard Atkins Public Links to Delphi Supplier Requirements on the Web Supplier Quality Assurance and other Supplier Issues 1
Howard Atkins PPAP forms - Delphi PPAP excel program - Partcertall - 6.06.xls Excel .xls Spreadsheet Templates and Tools 3
J PPAPALL from Howard @ Delphi APQP and PPAP 2

Similar threads

Top Bottom