<VV> Delphi costs (no Corvair... let's move to VV-Talk)

[Jim Burkhard]

This really oughta move to VV-Talk, but I've heard some 
errant statements I ought to clear up a bit...
(see below)

>> The new-ish CEO of Delphi was the guest on Autoline Detroit this 
>> weekend on> Speed TV (repeats on Tuesday). Exccellent interview. He was very open 
>> about Delphi's issues. One of them is that their "all in" labor cost (including
>> wages, overtime, benefits, and pension costs for retired folks) is 
>> $70+ per hour.

and then Padgett wrote:
> This is where "creative accounting" comes into play. Pension Costs 
> should *never* be included in a burdened rate. These are to be 
> separately funded and not to be included in overhead. When a company 
> starts playing with pension funds such as using them to bolster stock 
> prices, someone used to go to jail.
> 
> Padgett

Actually, no, this is where that old kids' game of 
"Telephone" comes into play. Too many people repeating what 
they heard from a reporter who heard it from another 
reporter who heard it from a press release somewhere.

The all-in labor costs discussed do not include pensions per 
se, but rather *retiree health care*. In the hourly labor 
contracts are *extremely* generous very low co-pay medical 
plans for hourly workers and hourly retirees that are much 
better than what the salaried folk (and the rest of the 
industry) get.  GM and Delphi have LOTS of retirees and 
employees in retirement or near retirmeent age, so this is a 
big issue and the expense gets factored into everything built.

Underfunded pension plans are a problem as well, but that is 
a separate subject entirely....

JFB