Who Is Delphi, And Why Are They On The Ropes

My neighbors know. In this case, Delphi is an automotive parts manufacture and supplier to many of the American car manufactures. Delphi says their in trouble they’ve filed for protection under chapter 11 bankruptcy. The first inclination of the public is to call Delphi a greedy insensitive corporate giant. That’s a short term description for a long term problem. A problem many of Americas insensitive greedy manufacturing cooperation’s will face in the near future. Technology, labor costs, retirement benefits, and foreign competition are not only taking a bit out of profits they’re diminishing operating capital. Delphi is only the first of many who will follow.

Delphi’s troubles started long before their was a Delphi. The problems started with a few Japanese Planes dropping a few bombes on Pearl Harbor Hawaii in 1941. That set in motion the largest industrial advancements and achievements known to man. Americas turned it’s efforts to war production. The first problem came when it was discovered their were too many jobs for to few workers. Along with a declaration of war came rationing, and wage and price controls. In order to entice workers and not circumvent the law manufactures needed something new that hadn’t been put under control. They turned to what they called fringe benefits, free health care, paid vacations, retirement plans. Sick days, birthdays, any days, the workers were Kings and Queens.

Management and labor went through fifty years of cat and mouse, more like Tom and Jerry. They gave a little took a little with more give than take. Along come, those damn Japanese again dropping Hondas and Nissans on us. The American automobile industry all but went in the tank. Because Americans are undisciplined, uncontrollable rif_raf our mother countries didn’t want and America did, [America feeds on such people.] The automobile industry rebounded and once again prevailed over the rest of the world.

The Automobile industry in there revamping, cost-cutting measures didn’t take into account labor costs, and especially fringe benefits, [that 800 pound Gorilla they were saddled with,] that by this time were knows as entitlements. Some jobs at Delphi plants pay as high as $ 65.00 per hour including benefits. That’s nearly three times the average workers pay. As many as 4,000 of Delphi’s domestic work force can be idled at a time, and still are paid. Why haven’t we heard about greedy insensitive workers? It’s not likely we’ll hear about them.

The New York Times reported Delphi had offered the Unions as low as 10 to 12 dollars an hour for production workers jobs. Those offers of course are Delphi posturing for position. Scare the hell out of them then try for something reasonable such as 25 to 30 dollars and hour. The workers have the Unions to arbitrate for them. The retirees won’t get much help from either Delphi or the Unions. They’ll be dumped on General Motors, [Delphi’s former owner] or the federal governments retirement protection fund. Either way the retirees are going to be screwed. I wonder how many former Delphi employees looked at the economic conditions in the automobile industry and thought, this bubble may bust one of these days leaving me holding hot air,

If they were only as smart today as they were yesterday negotiating those wages and benefits, perhaps they could negotiate their way out of this mess. It’s Delphi’s position they’ve cut all the fat they can from operating and manufacturing expenses, now it’s up to labor to do the same.