Ex-Delphi Workers Struggle For New Careers

Taxes Watered-Down Buyout Packages Of Bankrupt Auto Parts Maker

(CBS/AP)  Delphi Corp. workers who accepted buyouts from the nation's largest auto parts supplier have seen taxes eat away at their compensation packages as they struggle to build new careers.

Delphi filed for bankruptcy protection in October 2005 and later reached an agreement on buyout and early retirement programs with its two largest unions, the United Auto Workers and International Union of Electronic Workers-Communications Workers of America.

Employees received buyouts or early retirement incentives of $35,000 to $140,000 or more, depending on years of service and whether they were eligible to retain benefits after leaving Delphi.

Alice Sanders, 50, who left Delphi's Moraine automotive compressors plant in October, said taxes reduced her $140,000 buyout to about $91,000.

Still, she counts her blessings. Delphi's mounting problems prompted her to prepare as best she could financially. She plans to sell her Moraine home, buy a 4-acre farm and pursue a job at the Behr Dayton Thermal Products manufacturing plant in Dayton.

"I'm luckier than most," Sanders said. "I saw this coming a long time ago."

Delphi said the departures have reduced hourly employment at its UAW-represented brake plant in Dayton to about 1,200 — including new temporary hires recently made permanent — and to about 1,700 combined at Delphi's two IUE-CWA-represented plants in Moraine and Kettering, not including temporary hires.

Delphi now employs about 880 hourly workers at two Steelworkers-represented plants in Vandalia and Dayton.

For the departing workers, it is an exercise in retooling their lives at middle age.

Angela Guy, 38, of Dayton, left her job in November at Delphi's Dayton brake plant. She's preparing to start school next spring to pursue a new career in nursing. A single parent, Guy is counting on her family to help with her three children.

She is eager and nervous about her pending career change, but knows she must succeed for the sake of her children.

"I have no choice," Guy said.

Delphi says reducing its hourly labor costs is essential if the company is to emerge from court-supervised reorganization in 2007.

Meanwhile, Delphi said Monday it has accepted a $3.4 billion investment from a group of private equity companies to support its emergence from bankruptcy protection.

Under the deal, affiliates of Appaloosa Management LP, Cerberus Capital Management LP and Harbinger Capital Partners Master Fund I, as well as Merrill Lynch & Co. and UBS Securities LLC, would invest the company.

Separately, Delphi accepted a proposal from JPMorgan Chase Bank and a group of lenders to refinance the company's existing $2 billion debtor in possession credit line and about $2.5 billion in loans.

[bluestardad]

It is easier to pay you union workers to not show up for work ever and move the entire plant to Mexico than to keep your underproductive behinds in those lawn chairs 4 days a week.

[timetrips1]

I don't think Alice was making $140,000 a year, that was here compensation package for leaving and not receiving a normal retirement package. That 91,000 has to last a long time as it takes a while to get another job and then start building a retirement fund again.

As for "bluestardad" he's just upset he was never able to to get a stable good paying job. Just he thinks someone is over-paid doesn't mean they don't actually earn their money. Now if you want to be envious of someone who is overpaid just look at the multitude of CEO's that are making $1,000's of dollars per hour sitting on their butts. They make more than most surgeons who at least had to invest in their training and put it on line everytime they operate.

[Syndicate]

Alice lost $49,000 yet she still has $91,000. Frankly I would gladly pay my $49,000 in taxes if I were making $140,000 a year. Also consider that she probably made a good amout of money up until october.

[kb4ilb]

I truly hate to see anyone lose their job especially someone thats in the mid-prime of life,it just makes them have to start overe again.I wonder how the FAT CATS in Washington can talk about their carrers being interrupted for ***,stealing,lying,and just down right criminal behavior and not feel ashamed.We have the Olympics to honor the best athlete who has trained for years to do one accomplishment and be awarded a gold medal and endorsements from all kind of business !! But do you FAT Cats know who the real gold medal winner really is???? Its that man or woman that goes to work everyday for 35-40 yrs, stays out of trouble,pays his taxes and teaches his offspring to be honest for a modest home anf retirement..How can the Fat Cats demand white collar status for their crimes is a disgrace...Its a *** good thing i'm not in charge because they would be treated like everyone else and you would hear them squeal like a pig under a gate.I can say more but my blood is boiling.. Merry Christmas to all the workers and tav payers and the rest can just liss mya@@.. Sincerely a retired worker and veteran,may God bless you all and its okay to cry my friend because iam..

[mjv2944]

Thats right folks, and the rich pay zero, really fair uh!!!!

[biermang]

Alice lost $49000 to TAXES? That makes me sick!
I'm sure all that money went to help feed our nations starving and help house them, maybe even a flu shot here and there. I'm sure it didn't go to help build bombs to take life or silver line certain peoples pockets. Perhaps it help to buy the fuel for the Shuttle so that Nasa people can have jobs! Flying so high with their heads in the sky. Just like jr892t3g5u24wet6fb89f !!!!!

And everyone told me I was wrong when I said "Don't do it"