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Her 'Cinderella Story'

Delphi Corp. welder Betty Jo Rex dreamed of working in the auto industry and entering the middle class. As suddenly as those dreams were fulfilled, she faces losing them.
Delphi Corp. welder Betty Jo Rex dreamed of working in the auto industry and entering the middle class. As suddenly as those dreams were fulfilled, she faces losing them. (By Gary Malerba For The Washington Post)
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"People are in denial," said David Winters, Rex's co-worker who joined her on the picket line.

Most production workers at the Big Three make about $27.50 an hour, while most skilled workers make about $32 an hour.

The union's membership peaked in the 1970s at 1.5 million. As of 2004, it was less than 700,000. GM and Ford Motor Co. have announced staff reductions, while nonunion foreign automakers, such as Toyota Motor Corp. and Honda Motor Co., where wages and benefits are generally lower, are planning to hire more workers.

Delphi was once part of GM but was spun off as a stand-alone company in 1999. The deal was supposed to allow GM to refocus on designing and assembling cars and trucks while Delphi would focus on making parts. But since 2000, Delphi has struggled to make a profit, accumulating $5.5 billion in losses since 2000. Miller has said the loss is due to its labor costs, which have become particularly onerous as the number of auto-parts factories in countries with cheap labor has been increasing. Also, Delphi has been squeezed as GM has cut back production.

Last year, Delphi filed for bankruptcy protection. At first, Miller said he wanted to cut pay and benefits from about $27 an hour to $9.50, though he has since backed down from that proposal.

For Rex, such a cut would end what she describes as a "Cinderella story." Entering the auto workforce was a turning point in her life. She was so emotional when she got her first Delphi paycheck -- for $910.12 -- that she ran into a bathroom at work, shut herself in a stall and cried.

Delphi Corp. chief executive Robert S. Miller Jr. is expected to ask a court to void Delphi's labor contract on Friday if no deal has been reached.
Delphi Corp. chief executive Robert S. Miller Jr. is expected to ask a court to void Delphi's labor contract on Friday if no deal has been reached.
In the early days at Delphi, Rex often worked 11 a.m. to 1 a.m., jumping at the chance to work overtime. She currently works as a welder, handling three or four machines from 2 to 10 p.m. Her job is to create parts that are then sent to the assembly line, where they are turned into steering columns. She is on her feet the entire shift, wearing earplugs to drown out the loud noises. She gets two quick breaks and a half-hour for lunch.

But life at the plant has been different lately. Rex's co-workers are less chatty during breaks. They are pensive and are picking up as much overtime as they can. Recently, Rex was laid off for a week -- not entirely uncommon when production changes occur. But usually, workers with seniority take the temporary layoffs. This time, they didn't. They are too afraid it will become permanent, Rex said.

Rex, 51, earns $27 an hour and had assumed she'd be making at least that much until age 65, when she had long expected to retire on a comfortable pension of $1,064.00 a month.

Now she and her husband are preparing for the tough news they know is coming. "I understand that we may have to make some concessions, and I'm not opposed to that," Rex said. She just hopes the cuts are not so drastic that she loses her job or has to leave because it doesn't pay enough.

She said she and her husband are eating out less, delaying the purchase of a new car and cutting back on things such as treats for their grandchildren. They have also reduced the amount they are putting into their retirement accounts to 5 percent of their pay from 15 percent. The rest of the money is going into checking and savings accounts in case they need the cash. They have paid their monthly $1,500 mortgage for the next three months.

Rex says that if she does have to leave Delphi, "I'm going to be devastated."

But she added that her job at Delphi "enabled me to have a life I never would have had," she said.

"The way I look at it, I have been blessed with five wonderful years. There are people that work all their life and never had that opportunity."


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