http://www.freep.com/money/autonews/delphi22e_20051022.htmUnions irate over Delphi's new offer
BY TOM WALSH and JASON ROBERSON
FREE PRESS BUSINESS WRITERS
October 22, 2005
Delphi Corp. delivered a proposal to its labor unions Friday that calls for deep wage and benefit cuts, sparking an immediate howl of protest from the UAW.
"Delphi's proposal is designed to hasten the dismantling of America's middle class by importing Third World wages to the United States," UAW President Ron Gettelfinger and Vice President Richard Shoemaker said in a statement Friday afternoon.
Neither the UAW officials nor Steve Miller, chief executive officer of the automotive supplier, now in Chapter 11 bankruptcy, would reveal details. But Miller said the package was similar to the sharp concessions Delphi sought from the UAW prior to filing for bankruptcy Oct. 8, which include wages as low as $10 an hour, which would be a cut of about 60% for some workers.
"I think that it's ridiculous," said Todd Jordan, who works at a Delphi electronics plant in Kokomo, Ind. "The problem is that we have a living standard based on this $26 an hour, and right now we're living within our means. Now we're going to have to file for bankruptcy." Jordan said he has a pregnant wife and a 6-year-old daughter who depend on his income.
A message posted Friday on a Web site of another large Delphi union, the International Union of Electrical Workers, said the company wants to eliminate 5,500 of its 8,500 IUE workers through plant sales, closings, retirements and layoffs. Delphi said it plans to close six of the 10 facilities represented by the IUE, the union said. The message said Delphi also proposed lowering wages to $9-$10 an hour for production workers and dropping dental and vision coverage.
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Two articles fill the above-the-fold area of the front page of today's Detroit Free Press. Here's a peek at the second one:
http://www.freep.com/features/living/prepare22e_20051022.htmHOW 1 METRO DETROIT HOUSEHOLD SAVES: Cutting back to get by
As income falls, family scrutinizes expenses, redefines needs
October 22, 2005
BY MARGARITA BAUZA
FREE PRESS STAFF WRITER
The days when Molly MacDonald spent freely on lattes, summer camps, haircuts and impulse purchases at Somerset Collection are long gone.
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"It's not just the poor that are suffering," Metzger said. "With layoffs and cutbacks, unemployment doesn't show the people who are working part-time instead of full-time. I don't think we've seen close to what we're going to see in the next few months.
"People are living off credit cards, remortgaging and maxing out credit cards," he added. "I think many people out there are one paycheck away from being homeless. There's a lot hidden the numbers don't show."
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