The reconstruction of Delphi would involve the company’s reformulation of all their labor agreements and ensuring that there are no emerging loopholes. Modifying these agreements entails creating extensive pension plans for workers. Devising a pension plan in which payments have been stretched out over the years offers an alternative solution toDelphi’s pension benefits problems. Furthermore, crucial to this reorganization is the formulation of a solution to the high labor costs. It will be essential forDelphito transform their workforce in a way that they are better organized and their cost structure is highly competitive.
In tandem with this would be for them to capitalize on their market strengths and streamline their product portfolio. After refocusing their efforts towards improved work out put with the use of minimized labor or low waged workers, it will be easy to create a phenomenal company brand. As it is,Delphiis still a major part of GM and it is fundamental that they also streamline their issues. GM provides an immediate market forDelphiand with their observable dependence on each other; they must also draw and negotiate better agreements. Also, it is paramount that they finalize their negotiations on GM’s responsibility of offering financial support for the labor costs incurred byDelphi. As part of fulfilling this, GM has to make major contributions toDelphifor covering all incurred costs and also share some of the assets and liabilities. Ascertainments of continued business interactions with each other will kick start a better working relationship amongst all the parties. UAW and other labor unions are integral in the restructuring framework. Their role is to negotiate for the worker’s wages and come to an understanding on the new wages proposed byDelphi. This is vital and should happen soonest possible after the eruption of the crisis in order to avert further losses for GM.
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