Unions object to Delphi executive bonuses
Unions object to Delphi executive bonuses
Employee unions ask a bankruptcy judge to deny an extension of a $60 million annual bonus for executives.
By Vinnee Tong
Associated Press
NEW YORK — Delphi Corp. employee unions asked a bankruptcy judge to reject a $60 million-a-year executive bonus program while the auto parts supplier is moving forward on attrition programs offered to more than 30,000 union employees.
In its objection filed Wednesday, the International Union of Electronic Workers-Communications Workers of America said extension of the annual incentive program for senior executives "will anger, humiliate and alienate 34,000 Delphi represented workers and interfere with their unions having any reasonable chance to negotiate modifications in their collective bargaining agreements." The IUE-CWA, Delphi's second-largest union, was joined by four others in the filing.
Delphi asked U.S. District Judge Robert Drain to extend the bonus program for the second half of this year and let it continue as long as the company is in bankruptcy. The IUE-CWA asked the court to delay the motion until the company emerges from court protection. The matter is scheduled for a hearing next week.
The court decided Delphi had "exercised reasonable business judgment" when it sought the first program, which covered the first half of the year and was estimated to cost $36.3 million. It implemented the program to bring executive compensation up to competitive levels, according to the request by Delphi. A call to a company spokesman was not immediately returned.
The United Steelworkers of America said in its filing that Delphi was "oblivious to the irony" of paying bonuses to executives as it cuts hourly workers. The USW is negotiating for an attrition program for its members.
Three other unions objected: The International Union of Operating Engineers, the International Association of Machinists and the International Brotherhood of Electrical Workers.
The IUE-CWA, which represents about 8,500 Delphi workers, last month endorsed an attrition program to offer buyout packages of $40,000 to $140,000 and voluntary early retirement for a $35,000 payout. About 20,000 employees represented by the company's largest union, the United Auto Workers, were offered similar packages.
The IUE-CWA further objected that the bonus program set unreasonably low targets for executives to qualify for the at-risk compensation, and that eligibility had been extended to all 14,000 salaried employees under the new request, instead of 467 top executives in the first program.
On Tuesday, the company reported a $2.4 billion loss for 2005, in a delayed filing with regulators.
Copyright ©2006 Cox Ohio Publishing, Dayton, Ohio, USA. All rights reserved.
Employee unions ask a bankruptcy judge to deny an extension of a $60 million annual bonus for executives.
By Vinnee Tong
Associated Press
NEW YORK — Delphi Corp. employee unions asked a bankruptcy judge to reject a $60 million-a-year executive bonus program while the auto parts supplier is moving forward on attrition programs offered to more than 30,000 union employees.
In its objection filed Wednesday, the International Union of Electronic Workers-Communications Workers of America said extension of the annual incentive program for senior executives "will anger, humiliate and alienate 34,000 Delphi represented workers and interfere with their unions having any reasonable chance to negotiate modifications in their collective bargaining agreements." The IUE-CWA, Delphi's second-largest union, was joined by four others in the filing.
Delphi asked U.S. District Judge Robert Drain to extend the bonus program for the second half of this year and let it continue as long as the company is in bankruptcy. The IUE-CWA asked the court to delay the motion until the company emerges from court protection. The matter is scheduled for a hearing next week.
The court decided Delphi had "exercised reasonable business judgment" when it sought the first program, which covered the first half of the year and was estimated to cost $36.3 million. It implemented the program to bring executive compensation up to competitive levels, according to the request by Delphi. A call to a company spokesman was not immediately returned.
The United Steelworkers of America said in its filing that Delphi was "oblivious to the irony" of paying bonuses to executives as it cuts hourly workers. The USW is negotiating for an attrition program for its members.
Three other unions objected: The International Union of Operating Engineers, the International Association of Machinists and the International Brotherhood of Electrical Workers.
The IUE-CWA, which represents about 8,500 Delphi workers, last month endorsed an attrition program to offer buyout packages of $40,000 to $140,000 and voluntary early retirement for a $35,000 payout. About 20,000 employees represented by the company's largest union, the United Auto Workers, were offered similar packages.
The IUE-CWA further objected that the bonus program set unreasonably low targets for executives to qualify for the at-risk compensation, and that eligibility had been extended to all 14,000 salaried employees under the new request, instead of 467 top executives in the first program.
On Tuesday, the company reported a $2.4 billion loss for 2005, in a delayed filing with regulators.
Copyright ©2006 Cox Ohio Publishing, Dayton, Ohio, USA. All rights reserved.
posted by Walking Contradiction at 7/19/2006 02:51:00 PM
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