Delphi chief talks about plant closure if workers do not agree to wage cut

Delphi chief talks about plant closure if workers do not agree to wage cut

It is now official. Delphi Corp. Chief Executive Steve Miller has confirmed that they might have to close all their plants in the United States of America if the workers do not agree to wage cuts to help them exit bankruptcy. He was speaking in an interview and claimed that he has not received union counteroffers to his proposal. The company’s proposal had plans including slashing wages to as low as $10 an hour.

He had also proposed reducing the number of U.S. hourly workers to about 10,000, from 33,650 as per the statement released by the Union Auto Workers. UAW chief is however not amused. Miller said in the interview: “We are going to try and save as many jobs as we can, but at the current wage rates we would have to close down all of our U.S. Plants”.

Delphi is paying an average U.S. wage of $26.97 an hour this year, which is not going to help the company come out of bankruptcy. The company had to file for court protection in October after they failed to settle their differences with the UAW. They also failed to get any financial support from their old parents General Motors.

Miller also claimed that he has got several offers from various parts of the world showing interests in purchasing parts of the company. He has however shown no interest till now believing that the Delphi’s interest does not lie in selling off the assets of the company.

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