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Ghost Dog

Unions reject Delphi's latest contract proposal

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CHICAGO (Reuters) - Unions representing nearly all of Delphi Corp.'s <DPHIQ.PK> U.S. hourly workers on Tuesday rejected the bankrupt auto parts maker's latest proposed wage and benefit cuts, expressing doubts deals could be reached by the company's self-imposed deadline this week.

Delphi has said it must reach at least the framework of an agreement with its unions by Thursday, or it will file court papers the following day to start the process of rejecting its contracts and changing retiree benefits.

Such a filing would not immediately permit unions to strike Delphi, but could poison talks between Delphi and its two major unions, the United Auto Workers and the International Union of Electrical Workers-Communications Workers of America.

A bankruptcy court hearing would start May 8 if Delphi files those motions on Friday. A strike at Delphi could quickly disrupt production at General Motors Corp. <GM.N>, which spun Delphi off in 1999 and remains its largest customer.

Some are pretty harsh.


The local president said the only difference is the increases in wages and benefits that may be subsidized by GM, but there is no firm commitment to do that. "It wasn't very encouraging, he said. "It's not an improved offer. We're not taking it to the membership."

The UAW is not the only union ripping Delphi's offer. The IUE-CWA, representing about 25% of the supplier's work force, sent a letter to Delphi Tuesday calling its collective bargaining agreement proposal "ludicrous." The letter was provided to Dow Jones Newswires late Tuesday afternoon.

In a letter addressed to Kevin Butler, Delphi's human resources chief, IUE-CWA Chairman Henry Reichard said Delphi's proposal "is nothing more than lip service to the idea of negotiations while you prepare your motion to rip up (current) contracts - this is not good faith bargaining."

Reichard accused Delphi of ignoring the IUE-CWA, which represents 8,500 Delphi workers and 4,000 retirees. He said the company essentially left out its second-biggest union in labor negotiations that have been primarily held with the UAW. He said the IUE-CWA is willing to negotiate this week, but insisted the union will oppose any motions the company files. Members of the IUE-CWA have already authorized a strike in the case its labor agreement is scrapped.

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Guest Josh

I was just about to come post this. I said the Union would turn it down.

GM is not out of the woods yet, and the Union has said this contract will not see a vote before the Friday deadline.

It's going to be another dark day, Black Friday??

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This may be more about Miller getting as much from GM as Possible. And using the U.A.W. as the weapon.

Miller knows the Strike will hurt GM not him. So he can can continue to push the union, who are'nt going to back down.

The more Miller can get from GM to avoid a strike. The More that goes in his own personal pocket.

I said months ago the only way this gets settled peacfully is to remove Miller from the equation.

GM and The U.A.W should somehow push for outside bids. See what other parties would offer for the Assetts. And potential new Union Contracts.

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