In the first of many ripple effects, Continental Tire North America is cutting about 300 jobs from its workforce.
In related news, the UAW is protesting bankrupt Delphi's proposal to provide bonuses to executives: "Delphi's Chairman Steve Miller recently proposed $90 million in cash bonuses, while seeking a 60 percent pay cut for workers." The bonuses would go to about 600 executives under the proposal; concurrently, about 24,000 UAW members get steep cuts in wages and benefits.
Demonstrating just how disconnected executive compensation is from company performance, from 2000-2004, Delphi Chairman J.T. Battenberg III received $21.9 million in salary and stock while the company lost more than $4 billion.
This article first appeared at uspolitics.about.com