Boneheads

Who says management doesn't have a clue? First, the context. AP (04.21.06):

"The United Auto Workers and other unions opposed Delphi Corp.'s attempt to cancel its labor contracts in court filings Friday, saying the auto parts supplier has failed to prove it needs to slash workers' wages as part of its Chapter 11 restructuring. Delphi, which filed for bankruptcy protection in October, asked a federal judge to void its labor contracts March 31 after it failed to reach an agreement to lower wages with its unions and General Motors Corp., its former parent and largest customer." Unions Oppose Voiding Delphi Contracts

Delphi had asked its workers to agree to a wage cut "from $27.00 an hour to $16.50 an hour by 2007." Then it turns around and goes ahead with this. Detroit Free Press (04.21.06):

"On the same day that bankrupt Delphi Corp. announced a landmark deal to trim its workforce last month, the auto-parts supplier was entertaining hundreds of people on a weeklong trip to three Caribbean islands aboard the lavish Caribbean Princess cruise ship. Delphi officials say the trip was part of a company rewards program for car dealers and their salespeople to bring in much-needed business as it seeks to emerge from bankruptcy." Delphi cruise makes waves with UAW

Delphi wouldn't say "how much it spent for the cruises, but one business travel expert estimated the cost at $800,000 to $1.2 million." Delphi says incentives like this are good for business, and are intended to encourage dealers to buy Delphi products. No doubt, but what Delphi doesn't seem to understand is that the timing of something like this is abysmal. Unless, of course, it wants come across as arrogant and insensitive. One thing's for sure. It's positively gonna piss off the workers!! "Those onboard wined and dined at sea while Delphi, on March 22, announced a sweeping workforce reduction deal with General Motors Corp. and the UAW to provide early retirement and buyouts for 113,000 hourly GM workers and 13,000 hourly Delphi employees." "Plans for even more job cuts were announced a week later when Delphi unveiled a restructuring plan calling for the elimination of 31,000 hourly and salary jobs." Oh, and the cruise follows on the heels of the three-pronged (bonuses, severance pay, stock awards) "Key Employee Compensation Plan" Delphi dropped on the Bankruptcy Court last Winter. Detroit News (11.23.05):

"Delphi's 'incentive bonus' plan would parcel out $21.5 million to an unspecified number of executives during the first six months of bankruptcy. An additional $88 million in cash is also set aside for 'emergence' bonuses to 500 execs when Delphi comes out of Chapter 11. The severance program would give the top 21 officers a total of 18 months' worth of salary and target bonuses if they are forced to leave the company. Another 89 execs would get a year's pay and bonus as severance, while 373 other managers would receive a year's pay." Angry UAW fights Delphi exec bonuses

Did we mention the stock bonuses? "'According to the program, the management team would receive 10 percent of the equity in a reorganized Delphi. With a projected net equity of $4 billion, the stock options and restricted stock could total $400 million." 'Under a successful reorganization, Delphi's top five officers -- not including Miller -- could receive a combined $25 million in stock options and another $12.5 million in restricted stock." Happy negotiating!!