The greed will just not go away will it?
Washington -- A growing number of bankrupt auto suppliers are seeking court approval to pay tens of millions of dollars in bonuses to key executives, as they shed employees and cut costs.
Some of the bonuses have come under sharp criticism from General Motors Co. and Ford Motor Co., as well as the trustees named by the Justice Department to monitor bankruptcy cases.
I would hope someone would object. It's good to see that GM and Ford are weighing in.
And Northville-based wheel producer Hayes Lemmerz International Inc. wants permission to pay more than $10 million in bonuses, including as much as $6.7 million to its top five execs.
At what point will the guys who've been raking it in decide it's time to suffer a little bit themselves in the interest of the greater good? Like maybe help keep the companies viable in a new market?
detnews.com
The next bit is really rich...
Hayes Lemmerz, founded in 1908 to produce wooden wheels for the Model T Ford, is being sold to its bankruptcy lenders, who will own a majority of the company under its proposed reorganization. The lenders have approved the executive bonus proposals that according to the UAW total at least $12 million.
The United Steelworkers and UAW object.
In the meantime, Hayes has proposed creating a Voluntary Employee Beneficiary Association, which would allow retirees who are ineligible for Medicare to keep coverage at a cost of $900 to $2,100 a month.
Hayes would contribute as much as $4.8 million over four years to cancel its accrued liability of $147.5 million.