Delphi Hosts Lavish Cruises While Cutting Jobs

by Donna Jablonski, Apr 21, 2006

The Outrage Detector is screaming “AaaaaaOOOOgah!” over this one:

On the same day that bankrupt Delphi Corp. announced a landmark deal to trim its workforce 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 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,” UAW spokesman Paul Krell said. “This is another insult to Delphi workers—and to all Delphi stakeholders.” 

The Detroit Free Press goes on to say Delphi has sent more than 400 lucky people on two cruises since declaring bankruptcy Oct. 8. Delphi wouldn’t reveal the cost of the joyrides, but the Free Press cited a business travel expert’s estimate of $800,000 to $1.2 million.

On March 22, as the seafarers wined and dined, Delphi announced a workforce reduction plan of early retirements and buyouts for 13,000 hourly employees. Later the company said it will eliminate another 31,000 hourly and salary jobs.

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