Delphi may cut retiree benefits
By LARRY RINGLER Tribune ChronicleSaying it needs ''immediate and significant actions," auto parts maker Delphi Corp. filed a motion in bankruptcy court Wednesday asking permission to terminate certain salaried employee benefit plans and programs after March 31.
The company stressed it doesn't want to modify or terminate existing medical and insurance benefits of current salaried workers before they retire.
The motion is part of efforts to ''improve cash flow and restructure the company's balance sheet during dramatic and unprecedented'' slowdowns in orders from automaker customers, plus difficulties in borrowing during a credit crisis, the company said.
''We believe these changes are necessary to emerge from Chapter 11 and maintain a viable global business now and in the future,'' Delphi spokesman Lindsey Williams said.
Delphi said it provides medical and insurance benefits to about 15,000 eligible salaried retirees, including thousands from the local Delphi Packard Electric division, at a cost of more than $70 million annually.
An April 1 shutoff would save the company $200 million from 2009 through 2011, as well as eliminate balance sheet liabilities in excess of $1 billion, better positioning the company to exit Chapter 11 bankruptcy, which it entered Oct. 8, 2005, the company said.
Meanwhile, Delphi said it has agreed to change some financial terms of its debtor-in-possession financing so it can preserve cash as the auto industry continues to sag.
The former parts division of General Motors Corp. said in a regulatory filing that it has agreed with lenders on changes to its pay-down requirements.
GM said it will speed up $50 million in payments to Delphi as part of its agreement that calls for the automaker and Delphi's former parent to provide $300 million through June 30.
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anniemae
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02-07-09 7:59 AM
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autoworker.....what a sad distorted life you live. Nothing positive comes from your mouth. Take heed, smart butt,...what goes around comes around. You're gonna have to eat all those nasty words before long.
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fairness
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02-06-09 3:09 PM
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Autoworker. It works both ways. There are many place the unions caused the problems. I feel sorry for anyone losing pension. It's not right.
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autoworker
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02-06-09 1:08 PM
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just think if the salary workers would have belonged to a union they wouldnt have had to take cuts....guess the unions were so worthless after all now were they? too bad u didnt sign up for a union position.
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BENOIT
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02-06-09 12:12 PM
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JUST WONDERFUL. AS A RETIRED SALARY WORKER, WE LOST AND LOST OVER THE LAST 15 - 20 YEARS OF MY WORK LIFE, COLA, VAC, MERIT RAISES, RAISES, INSURANCE PAY AND CO-PAYS. GM AND DELPHI HAS SCREWED THE SALARY WORK FORCE FOREVER. WHY DON'T THEY DO IT TO THE CEO' AND MEMBERS OF THE EXECUTIVE BRANCHES? WE HAVE TAKEN IT ON THE CHIN FOR YEARS. THEY HAVEN'S. BATTENBURG SHOULD BE IN JAIL WITH THE ENRON BUNCH!
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BENOIT
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02-06-09 12:12 PM
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JUST WONDERFUL. AS A RETIRED SALARY WORKER, WE LOST AND LOST OVER THE LAST 15 - 20 YEARS OF MY WORK LIFE, COLA, VAC, MERIT RAISES, RAISES, INSURANCE PAY AND CO-PAYS. GM AND DELPHI HAS SCREWED THE SALARY WORK FORCE FOREVER. WHY DON'T THEY DO IT TO THE CEO' AND MEMBERS OF THE EXECUTIVE BRANCHES? WE HAVE TAKEN IT ON THE CHIN FOR YEARS. THEY HAVEN'S. BATTENBURG SHOULD BE IN JAIL WITH THE ENRON BUNCH!
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BENOIT
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02-06-09 12:12 PM
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JUST WONDERFUL. AS A RETIRED SALARY WORKER, WE LOST AND LOST OVER THE LAST 15 - 20 YEARS OF MY WORK LIFE, COLA, VAC, MERIT RAISES, RAISES, INSURANCE PAY AND CO-PAYS. GM AND DELPHI HAS SCREWED THE SALARY WORK FORCE FOREVER. WHY DON'T THEY DO IT TO THE CEO' AND MEMBERS OF THE EXECUTIVE BRANCHES? WE HAVE TAKEN IT ON THE CHIN FOR YEARS. THEY HAVEN'S. BATTENBURG SHOULD BE IN JAIL WITH THE ENRON BUNCH!
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outsider
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02-06-09 10:21 AM
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First of all, the shareholders lost everything. That's what happens in a bankrupcy. Second, didn't you Packard people ever hear of a IRA? Instead of relying on the promises of your nanny, GM, you could have set some money aside, taxfree 'til you needed it in retirement. And third I'm tired of the whining from you 30 and out people. Go back and work to 65 like the rest of us.
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OutsideTheBox
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02-06-09 10:06 AM
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Let's cut medical benefits for people who work, whether hourly or salaried, but we gotta make sure we protect the investors! Let's rely on a 40 year old credit rating system like it's the Bible instead of fixing it but yeah, forget everyone the company runs on! Good thinking! Makes you wanna buy Hondas.
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Nastydog
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02-06-09 10:05 AM
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Annie i feel for you my mother is going thru the same thing.
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anniemae
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02-06-09 10:02 AM
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I worked for 32 years as a GM salaried worker & lost benefits all along. This Jan. took the cake. They took ALL my medical.(which I paid premium for, deductible & co-insurance) Try to find secondary insurance that is affordable at my age. But absolutely NO mention of the union having to make a concession. It's a cryin shame that they don't stop paying for all those union people.....when everyone else is suffering.
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Nastydog
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02-06-09 9:40 AM
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Lmao.....
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purple51
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02-06-09 9:36 AM
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That sure explains all of his anti-union rhetoric.
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MD1533USMC
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02-06-09 9:31 AM
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Oh, it's coming to light! The grummpy old man2 was a salaried worker!
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Nastydog
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02-06-09 9:12 AM
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OldMan. I think you need to take your own advice and think before you type.
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Nastydog
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02-06-09 9:06 AM
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Trance. I feel for you guys big time. It is avery bad situation going on there. I wish you and your family nothing but the best.
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Trancemage
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02-06-09 8:55 AM
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No ill feelings at all, just wanted to make sure that people knew what was going on. It Stinks everywhere though.. everyone is just trying to hang on to what they do have while the guy next to you, or yourself, gets let go... sad, very.
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OldManGrump2
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02-06-09 8:45 AM
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Thinker - Delphi salaried retirees took in on the chin first with loss of pension and now loss of medical. Do you really THINK before you type?
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Thinker
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02-06-09 8:42 AM
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I'm sorry Trance, I meant no ill feelings by that remark. I have friends who were foremen there, and remember the cuts they had to take way back in the 90s. The best thing you guys had going for you when you were working were the great stock options and 401s. Good luck.
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Nastydog
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02-06-09 8:14 AM
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Trance. Very interesting.
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Trancemage
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02-06-09 8:11 AM
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Hey thinker. to let you know. They did cut pension. There is none now, whatever you had built up to the point they cut it is what you have, thats why a lot of the guys decided to retire. They also cut every other thing they could, the only thing a salary employee gets now is a paycheck and a token match to the 401K. If they would have offered a buyout like the Union guys got most everyone would leave. But all we get is a nice pat on the back a few months, (soon to be two weeks prob) of severance and a kick out the door for all our hard work. So don't assume that the hourly guys where the only ones to take cuts. We give and keep on working with the hope that maybe some of us can come out of this in a Company that is better, even though we all have our doubts. What they are doing to the retired guys is absolutly wrong, these guys went out with an agreement that this is what they will get, and no with no say this company wants to take it to them becuase it can...
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Nastydog
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02-06-09 8:00 AM
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Thinker. I feel you sometimes he has some valid points and then he just completely goes left field in his next sentence or paragraph. lmao.....
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Thinker
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02-06-09 7:56 AM
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I don't consider it arguing, but thanks for the heads up. I think any intelligent person on this forum sees him for what he really is.
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Nastydog
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02-06-09 7:37 AM
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Thinker. LMAO..... Thats what he wants. He wants for you to argue with him.
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Thinker
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02-06-09 7:35 AM
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Oh, I see, now, Grump: You only "feel" for SALARIED employees. No comments here about how THEY should have taken pay cuts when they worked, or pension cuts when retired! Now, we see WHO you are: A shill for the inept and overpaid managers of industry. This explains it all.
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Nastydog
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02-06-09 7:32 AM
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I feel for those who retired and i hope they had a back up plan. Me myself have been blessed because i will have medical coverage no matter what because of my job and i am retired from the Military. But everyone is not as fortunate as myself so i just hope the people who retired always had a backup because we never know what will happen one day to the next
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