A Leading Portal for China Auto Industry
A U.S. bankruptcy judge ruled on Thursday that Delphi Corp. may pay up to $37.4 million in bonuses to executives for the first six months of 2007, despite objections from the auto parts maker's unions.
"It's not the case that every dollar that goes into an executive's pocket is a dollar out of a (worker's) pocket," Judge Robert Drain said in ruling that the payments clearly are a part of the salary plan and not a "handout."
Delphi, which filed for bankruptcy protection in October 2005, remains in talks with its unions over proposed wage and benefit cuts and other issues necessary to complete its reorganization.
Some 440 executives could receive payments ranging from a total $20.1 million if Delphi met operating targets to a maximum of $37.4 million under the plan Drain approved in a hearing at the U.S. Bankruptcy Court for the Southern District of New York.
It is "necessary (for the) executive team to be compensated at least somewhat comfortably," said Drain, who approved Delphi's requests for similar payments in 2006.
Union lawyers argued the incentive plan was a "distraction" or "impediment" to the unions' negotiations with Delphi.
A lawyer representing the United Steelworkers union, Lowell Peterson, reported a high "frustration level" among the rank and file that negotiations have not advanced in six months.
Judge Drain said he "strongly urged" Delphi and the unions to "put every effort" into negotiations.
Delphi lawyer Jack Butler declined to comment on the status of union negotiations.
"I think the judge has an expectation that the principal stakeholders in this case will be actively negotiating 24/7 to try to resolve the barriers to emergence from Chapter 11," Butler said. "That message was heard loud and clear."
Delphi has delayed consideration of a key employee compensation plan, which would include payments to executives for completing the reorganization, until later in the process.
Troy, Mich.-based Delphi plans to cut about four-fifths of its U.S. hourly workers and thousands of salaried workers worldwide to restructure its operations. It also plans to exit several businesses.
Private equity firms have proposed a $3.4 billion equity investment to support Delphi's emergence from bankruptcy, contingent on the company reaching agreements with its unions and former parent General Motors.
We deliver timely, professional China automotive news and commentaries, and authoritative interviews on global purchasers, suppliers, CEOs of consultation firms and aftermarket companies; focus on the industry dynamic news and markets!
Changan Flagship SUV-CS95 is launched today, equipping with 4WD system
Zotye increases capacity of 100,000 units, planning to launch 4 SUV models in the year
2016 Great Wall Motors profits grew over 10bn
Summary: Best-selling passenger automobile models in the Chinese market in February
FAW Toyota Deepen Compact Car Strategy with Aim to Account for 70% of Sales in 2020
Young Man Lotus L3 EV’s debut shows trend of zombie auto companies’ survival in hot alternative energy market
SGMW Passenger Vehicle Project Settled in Qingdao, Capacity Increases by 200,000 Units
Qoros flagship electric coupe to debut next month in Shanghai
Geely Vision SUV is Exposed with 1.4T Engine
Beijing Hyundai's new platform: several generations from the same platform
China Will Establish the Automobile Inspection and Maintenance System to Promote Energy Saving and Emission Reduction
GAC Trumpchi GS3 with an 1.0T engine to rival Haval H2
Domestic TLX Launch, ACURA 3 New Models Out
Beijing Hyundai’s Releases its 2017 Plan, with Many New Models being Launched
GWM WEY Meets Obstacle in Sprinting for High Sales, Haval Lowers Price for Increasing Sales Volume
Summary: Top performing Chinese own brand automobile manufacturers in February
The exposed Chery technological plan involves powertrain and connected vehicles
BAIC Invests 1 billion in Promising Car-sharing Service
JAC New Energy Vehicles February Sales Decreased by nearly 90%
Hot Auto Products|
Auto Products Directory|
Auto Parts Manufacturers|
Copyright Notice © 2016 Gasgoo.com Corporation and its licensors. All rights reserved.