GM Now Right In The Middle Of Delphi Bankruptcy

[Guest Josh]

DETROIT (AP) - The United Auto Workers union isn't negotiating with auto supplier Delphi Corp. but began talking with General Motors Corp. two weeks ago about a possible deal that could avert a strike at Delphi, the UAW's top GM negotiator said Tuesday.

UAW vice-president Richard Shoemaker said Delphi has only talked to the union twice since it filed for bankruptcy in October, when it gave the union two different wage proposals. The UAW rejected both proposals, which would have cut production workers'wages from $27 US an hour to $12.50 US an hour or lower. Shoemaker said the UAW hasn't offered its own wage proposal.

"Their proposal, the quality of it, is such that it doesn't warrant us making a counterproposal," Shoemaker said in an interview with The Associated Press.

UAW president Ron Gettelfinger also told The AP that he plans to meet local union leaders Wednesday about a proposed agreement to cut Ford Motor Co.'s health-care costs. Gettelfinger wouldn't reveal specifics but said the agreement is similar to one reached with GM which makes hourly workers and retirees pay more for their health care.

Gettelfinger said the decision to cut back on benefits was a difficult one. The union also plans to start health-care negotiations with DaimlerChrysler AG's Chrysler Group.

"We did not want to go down this road. It was not an easy decision to make, but it was the right decision," Gettelfinger said.

Shoemaker told local union officials last week that a strike against Delphi is likely. He repeated that claim Tuesday, although he wouldn't say when a strike might begin. A strike would cripple the supplier as well as GM, its former parent and largest customer.

"Based on the current status of the situation, a strike is more likely than not," Shoemaker said. "We hoped it wouldn't end up that way. But it would be dishonest to suggest that was not the situation now."

Full Story: http://www.cfrb.com/node/29161

[Newbiewar]

i thought bankrupsy chapter 11... was for restructering... and voided all contracts with unions... so would the union be intrested in a strike? that only damages the company more, and want to not make an agreement... its time for employees to start working for Delphi and GM, instead of working for the UAW

[SimonDavid]

I think because contracts are voided a strike is legal. Right now they are in a contract-less limbo But the court can also make orders - ie impose terms

[Guest buickman]

I think because contracts are voided a strike is legal.  Right now they are in a contract-less limbo

But the court can also make orders - ie impose terms

[post="58550"]<{POST_SNAPBACK}>[/post]

Until the court voids the agreement, a strike would be illegal. The rank and file are instead engaging in "Work to Rule" in order to take control of the shop floor. The general membership of the union is in the midst of a revolt against Solidarity House characterized by claims of corruption and collusion. For more visit www.GreggShotwell.com and www.futureoftheunion.com I attended their Flint rally this past Sunday, it was something to behold. These people are they are simply angry about losing their very way of life. Don't underestimate the newly formed "Soldiers of Solidarity".

[CARBIZ]

Wait a minute, this is making less and less sense to me. Didn't I read somewhere else here that GM actually pays Delphi about $2billion more for parts that they could simply buy somewhere else? And if GM has had so much lead time with this bankruptcy/strike threat thing, why can't they just start sourcing said parts somewhere else - where they would be cheaper, too! Why is the UAW negotiating with GM, rather than Delphi? I hope this isn't another Fiat disaster in the making. What would the point of spinning off a company if the parent is still responsible for its costs?

[Cremazie]

Wait a minute, this is making less and less sense to me.  Didn't I read somewhere else here that GM actually pays Delphi about $2billion more for parts that they could simply buy somewhere else?  And if GM has had so much lead time with this bankruptcy/strike threat thing, why can't they just start sourcing said parts somewhere else - where they would be cheaper, too!
  Why is the UAW negotiating with GM, rather than Delphi?  I hope this isn't another Fiat disaster in the making.  What would the point of spinning off a company if the parent is still responsible for its costs?

[post="58580"]<{POST_SNAPBACK}>[/post]

Reason is, GM is on the line for way more. They have to pay pensions if delphi flops. I know there is even more at stake here too.