Delphi's job cut report, lavish cruise coincide

Delphi has sponsored two cruises for hundreds since it filed for bankruptcy.
DETROIT FREE PRESS
DETROIT -- On the same day that bankrupt Delphi Corp. announced a landmark deal to trim its work force last month, the auto parts supplier was entertaining hundreds of people on a weeklong trip to three Caribbean islands aboard the lavish Caribbean Princess cruise ship.
Delphi officials say the trip was part of a company rewards program for car dealers and their salespeople to bring in much-needed business as it seeks to emerge from bankruptcy. But the ire of Delphi's employees and union leaders was raised when learning of the trip from the Detroit Free Press.
"It is grossly inappropriate and insensitive for Delphi to spend money on expensive Caribbean cruises at the same time it's in bankruptcy court seeking approval of a restructuring plan that would eliminate thousands of jobs in communities across America," said UAW spokesman Paul Krell. "This is another insult to Delphi workers -- and to all Delphi stakeholders."
Two cruises already
Since filing for bankruptcy Oct. 8, Delphi has sponsored two cruises as a reward for more than 400 auto dealers and sales people selling Delphi's line of auto accessories. The company said only two Delphi managers were on board.
Delphi would not say how much it spent for the cruises, but one business travel expert estimated the cost between $800,000 and $1.2 million.
Bill Boyd, immediate past president of the Society of Incentive & amp; Travel Executives, said incentive cruises for large groups typically include rooms facing the ocean that can cost $2,000 to $3,000 a person.
The most recent cruise, from March 18 to March 25, left Fort Lauderdale, Fla., with more than 200 dealers and salespeople and visited St. Thomas, St. Maarten and the Princess Cays islands.
The trip aboard the 3,100-passenger Carnival Corp. vessel -- featuring four swimming pools, a nine-hole putting course with golf simulator, one of the largest casinos afloat and a wide variety of bars and lounges, including a wine and caviar bar -- underscores Delphi's dilemma as a tale of two companies: While Delphi's traditional car parts business, making such parts as brake hoses and batteries, is losing millions, another division sells highly profitable technology products, such as satellite radios and navigation systems -- sales of which paid for the cruises.
Wined and dined
Those on board wined and dined at sea while Delphi, on March 22, announced a sweeping work force reduction deal with GM and the United Auto Workers union to provide early retirement and buyouts for 113,000 hourly GM workers and 13,000 hourly Delphi employees.
Plans for even more job cuts were announced a week later, when Delphi unveiled a restructuring plan calling for an elimination of 31,000 hourly and salary jobs.
Jim McTevia, a company turnaround specialist with more than 40 years' bankruptcy experience, said Delphi's timing for the cruises could not have been worse.