Delphi Absolved Of Retiree Obligations

Edward Niedermeyer
by Edward Niedermeyer
delphi absolved of retiree obligations

Automotive News [sub] reports that GM spin-off supplier Delphi has received approval from bankruptcy court to cut benefits to 15k non-union retirees. The ruling will save Delphi an estimated $70M per year, improving the chances Delphi will end its nearly 3.5-year sojourn in Chapter 11 restructuring. GM has been helping generously towards that end, having offered to buy Delphi’s steering component business for an undisclosed sum and funneled hundreds of millions to its crucial supplier. Or quasi-independent division. Or whatever Delphi really is to GM. The full text of the order in question is here (pdf). It’s long, so check out a few highlights after the jump.

“The Debtors are hereby authorized, but not directed, to freeze the Delphi Hourly-Rate Employees Pension Plan (the “Hourly Plan”), in whole or in part, effective as soon as practicable following receipt of consent from the applicable Unions,” it begins. Interestingly, one of Delphi’s first-day filings (pdf) asked their judge “to consider rejection of the collective bargaining agreements with those Unions with which the Debtors do not have ratified, signed cost-reduction agreements, and to consider elimination of their retiree medical and life insurance benefits.” Oh, yeah, “on an expedited basis,” too. Consent, as they say, is sexy. And the unions weren’t giving it up cheap.

The salaried chumps, on the other hand, didn’t have Ron Gettlfinger and company manning the ramparts for them. “The Debtors are hereby authorized, but not directed,” wrote the Judge Drain way back in September, “to freeze the Delphi Retirement Program for Salaried Employees, the Delphi Mechatronic Systems 3 Retirement Program, the ASEC Manufacturing Retirement Program, and the Packard-Hughes Interconnect Non-Bargaining Retirement Plan.” These were replaced with what amounts to a 401k, except for executives who get the appropriately acronymed SERPS program.

The Retiree Committee brief sought to “explore the efficacy of preserving applicable federal tax credits available for retirees in connection with the debtors’ implementation of the Court’s authorization to modify retiree benefits, and to consider appropriate modifications to the Court’s order in return for waiving, as the representatives of all retirees, appellate rights with respect to the Benefits Order.” Whether these benefits were “vested” seems to have been an issue.

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  • Wmba Wmba on Mar 13, 2009

    @ ruckover: Are you serious? This reads like a Hitler manifesto from the 1920s. Forced euthanasia of the retired non-productive, is that your cant? As for expecting a company to pay out its contracted pension obligations, why not? The US prides itself on being a country of laws, and an employment contract should be no different from any other. Company I worked for put their contributions and the employees ones into an account administered by a third party. No sticky finger dipping by management when times got a bit tough. The way I see things, I paid for that pension with my money, and I had a contract. It was part of my compensation. Why the fuck wouldn't I expect to get it? Because the stock market tanked? Not a sufficient reason. You define retirees as leeches. What I define you as is not allowed to be said under TTAC posting rules.

  • LastResort LastResort on Mar 13, 2009

    wmba, google "A Modest Proposal" or Jonathan Swift.

  • ToolGuy I did truck things with my truck this past week, twenty-odd miles from home (farther than usual). Recall that the interior bed space of my (modified) truck is 98" x 74". On the ride home yesterday the bed carried a 20 foot extension ladder (10 feet long, flagged 14 inches past the rear bumper), two other ladders, a smallish air compressor, a largish shop vac, three large bins, some materials, some scrap, and a slew of tool cases/bags. It was pretty full, is what I'm saying.The range of the Cybertruck would have been just fine. Nothing I carried had any substantial weight to it, in truck terms. The frunk would have been extremely useful (lock the tool cases there, out of the way of the Bed Stuff, away from prying eyes and grasping fingers -- you say I can charge my cordless tools there? bonus). Stainless steel plus no paint is a plus.Apparently the Cybertruck bed will be 78" long (but over 96" with the tailgate folded down) and 60-65" wide. And then Tesla promises "100 cubic feet of exterior, lockable storage — including the under-bed, frunk and sail pillars." Underbed storage requires the bed to be clear of other stuff, but bottom line everything would have fit, especially when we consider the second row of seats (tools and some materials out of the weather).Some days I was hauling mostly air on one leg of the trip. There were several store runs involved, some for 8-foot stock. One day I bummed a ride in a Roush Mustang. Three separate times other drivers tried to run into my truck (stainless steel panels, yes please). The fuel savings would be large enough for me to notice and to care.TL;DR: This truck would work for me, as a truck. Sample size = 1.
  • Art Vandelay Dodge should bring this back. They could sell it as the classic classic classic model
  • Surferjoe Still have a 2013 RDX, naturally aspirated V6, just can't get behind a 4 banger turbo.Also gloriously absent, ESS, lane departure warnings, etc.
  • ToolGuy Is it a genuine Top Hand? Oh, I forgot, I don't care. 🙂
  • Ed That has to be a joke.