UAW opposes Delphi exec bonuses----------------DailyBulletin.com - Business

DailyBulletin.com - Business:

"On the day before Delphi filed for bankruptcy in October, the company said it was boosting the severance packages for 21 top executives. Under the new agreement, executives will be eligible for 18 months of pay if Delphi lays them off. Previously severance packages were capped at 12 months. In exchange, executives signed agreements promising not to work for competitors for the 18-month period.

Delphi also wants the court to approve a separate package that would grant 10 percent of the equity of the reorganized company to 600 executives if Delphi emerges from bankruptcy. That package also would pay out bonuses to executives both during and after bankruptcy.

UAW calculates the value of the stock options is $400 million. The union also says the bonuses would cost $42 million annually during bankruptcy and $89 million once the company emerges from bankruptcy.

'UAW opposes the ... motion because it is grossly excessive and an imprudent use of estate assets,' the union said in the filing."