Michigan economy goes to the brink with Delphi
March 27, 2006
This Thursday is the deadline for Delphi, the bankrupt auto parts maker, to come to agreement with its employees on a much lower hourly wage.
Today's Detroit News outlines a proposal where Delphi with GM's assistance offers lower wages at a graduated pace. First step would be with the average employee going from $27 to $22 per hour and ending at $16 an hour.
If no deal is reached by Thursday, then Delphi will go to the bankruptcy court judge and ask that the contracts with their employees be voided. That would probably precipitate a strike.
If that happens, then Michigan's quandry and troubles will be at the crisis point. Politicians from both sides will have to work together to ensure that our state has a future. The likelihood of both sides working together towards a positive end?
Tags: Delphi, General Motors, UAW, Michigan, auto industry
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