Delphi seeks to cancel contracts

[andy82471]

http://news.yahoo.com/s/ap/20060330/ap_on_...DNqBHNlYwM3NDk-

DETROIT - Auto supplier Delphi Corp. is expected to ask a federal judge to cancel its union contracts Friday, an action that could lead to a devastating strike, the United Auto Workers said.

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Delphi had set a deadline of Thursday to reach an agreement with its unions and General Motors Corp. that would lower wages for its 34,000 U.S. hourly workers, but it appeared unlikely Delphi would meet that goal. In a message on its Web site Thursday, UAW said Delphi would file motions to void its contracts on Friday morning.

A message was left seeking comment from Delphi.

The UAW, which represents the majority of Delphi's hourly workers, reacted angrily this week to Delphi's latest proposal, which calls for lowering workers' wages from $27 an hour to $16.50 an hour in 2007. Local union leaders have said the UAW won't take the deal to its members for a required vote.

GM also hadn't settled with Delphi as of Thursday morning. Delphi would depend on GM, its former parent and largest customer, to supplement its wage offer and give one-time, $50,000 payouts to union members if the offer is accepted. If GM doesn't agree to supplement workers' pay, wages would fall to $12.50 an hour for production workers and $21.50 an hour for skilled trades, the UAW said.

If Delphi asks the bankruptcy court judge to void its contracts, the company wouldn't immediately face organized strikes. Judge Robert Drain has scheduled a May 8 hearing on Delphi's request and wouldn't decide whether to void Delphi's contracts until after that hearing.

But if Drain does agree to void Delphi's contracts, the International Union of Electronics Workers-Communications Workers of America — which represents around 8,000 hourly workers — has already authorized a strike, and UAW members could authorize one as well.

A strike would be devastating for GM, which depends heavily on Delphi parts. GM, which is struggling with declining U.S. market share and spiraling costs, lost $10.6 billion in 2005.

The world's largest automaker has been shedding assets in a bid for cash. On Thursday, GM confirmed it is in talks to sell its 7.9 percent stake in Isuzu Motors Ltd. Earlier this month GM sold its 17 percent stake in Suzuki Motor Corp. for about $2 billion.

GM also is trying to sell a 51 percent stake in its finance arm, General Motors Acceptance Corp., a deal which could be worth up to $15 billion. The Wall Street Journal, citing people familiar with the matter that it did not name, reported Thursday that GM was getting closer to a sale.

A message seeking comment was left for a GM spokeswoman.

GM shares fell 22 cents to $21.93 in early trading on the New York Stock Exchange.

___

Edited March 30, 2006 by andy82471

[Newbiewar]

suggesting that they judge does viod the contracts... how long will the strikes be going on? how many days weeks or months will delphi be idled, as well as GM, if the hearing continues?

[CARBIZ]

Being as this bankruptcy took place, like six months ago - I certainly hope that Wagoner and the gang have a back up plan. They've had a long time to plan for the likelihood that this will happen. After all, this is just a dress rehearsal for what is going to happen in 2007.

[andy82471]

Man this is getting depressing. I hope GM has a good plan B if worst comes to worst. A Delphi strike could be the end of GM as we know it.

[ellives]

Let them strike. It will only be fitting they go down with the ship. They can always find better jobs elsewhere, right?

Man this is getting depressing. I hope GM has a good plan B if worst comes to worst. A Delphi strike could be the end of GM as we know it.

[daves87rs]

Let them strike. It will only be fitting they go down with the ship. They can always find better jobs elsewhere, right?

I highly doubt it.

[ellives]

My point precisely.

I highly doubt it.

[Ghost Dog]

I highly doubt it.

At least as good as what Delphi is Offering.

And with what GM has done for Delphi, there was no reason for Miller to provoke this. Most Of the Employees who would have remained would likely have been at the Lower pay tier already.

Miller is simply holding GM hostage trying to get more out of them. When Gm Really with what they've already done has done enough for Miller.

There was no good reason for Miller to go after the second tier pay people. The Gm Buyout early retirement (as GM employee) deals. should have relieved Delphi enough to end this.

Edited March 30, 2006 by Ghost Dog

[evok]

At least as good as what Delphi is Offering.

For good or bad - a year from this Friday the US auto landscape will not look the same.

[FUTURE_OF_GM]

I'd say "Plan B" is bankruptcy....

There is simply NO way around it if Delphi strikes.

For better or worse.....

[turbo200]

i guess this is really decision time then? strike will happen by this friday if nothing changes?

[evok]

i guess this is really decision time then? strike will happen by this friday if nothing changes?

Yes the ball is in the UAW's court but this was just sent to me and was published in the news:

"If Delphi asks the bankruptcy court judge to void its contracts, the company wouldn't immediately face organized strikes. Judge Robert Drain has scheduled a hearing on Delphi's request for May 9 and wouldn't decide whether to void Delphi's contracts until after that hearing. "

[Ghost Dog]

i guess this is really decision time then? strike will happen by this friday if nothing changes?

Technically I guesse they can't strike till the Judge actually Voids the contract. (May?) I read GM might try to convince the Judge in May not to Void.

But Tempers will run high, and people are people. I think I read the S.O.S seem to be pushing for instant wildcating.

Newtons third law.

[The O.C.]

i guess this is really decision time then? strike will happen by this friday if nothing changes?

I guess it depends on the unions. I guess they COULD vote to strike that soon and not wait for the hearings in order to try to get Delphi to fold before the May 8 hearings....and to make a "statement."

....or they will wait until they hear the judge's decision after the May 8 hearings before they decide if they are going to strike or not.

[turbo200]

very interesting. i thought a strike would be neatly avoidable, now it appears inevitable. there are certainly dark times ahead.

[hyperv6]

We have a few Delphi plants in this area and a lot of people who are employed there.

Talk radio here is lit up with Delphi workers calling in and saying they will strike if called on and will be willing to go down with the ship taking GM with them.

I know this is not a reflection of all Delphi workers and I pray the UAW managment use good judgment in their dealing with Delphi and GM.

Someone stated the GM plants have 5-6 days of parts on hand does anyone know if this is correct?

Also I know the wheel maker on the Z06 wheels went bankrupt and GM had to get a new supplier. How long did that take and is it possible to get replacment suppiers in time for a strike in May? Or is that even a realistic option?

Edited March 30, 2006 by hyperv6

[haypops]

If Delphi is Toyota's third largest supplier, wouldn't they be as adversly effected by a strike of Delphi as GM. Would they be able to outsouce to Japan or elsewhere faster than GM? Would Toyota buy Dephi to maintain production? Comments?

[Angry Dad]

This isn't going to be a GM or Dephi going under matter. The entity that is going to get bashed is the UAW. UAW Delphi workers go on strike, Delphi gets a court order that recognizes the strike as violation of current contract and conditions, new workers get hired. UAW looks like idiots, loses all leverage with any and all corporations they have contracts with.

If I were UAW member I would like the leadership to be in same boat as me. For all the noise they make about equality of sacrifice at plants, these bloated boobs don't lose much for leading the membership into oblivion.

[Ghost Dog]

This isn't going to be a GM or Dephi going under matter. The entity that is going to get bashed is the UAW. UAW Delphi workers go on strike, Delphi gets a court order that recognizes the strike as violation of current contract and conditions, new workers get hired. UAW looks like idiots, loses all leverage with any and all corporations they have contracts with.

If I were UAW member I would like the leadership to be in same boat as me. For all the noise they make about equality of sacrifice at plants, these bloated boobs don't lose much for leading the membership into oblivion.

For all the Talk that comes out of the S.O.S. I don't think the UAW will be the first to strike. For some reason I think there is a real bitternes in the IUE-CWA. They will go first.

[FAPTurbo]

Talk radio here is lit up with Delphi workers calling in and saying they will strike if called on and will be willing to go down with the ship taking GM with them.

Sad... Sad... Sad...

If GM goes down, they may be happy for a small time For some strange reason, they'll feel some strange sense of accomplishment that they did something "monumental;" bringing down a corporate giant.

But I'll bet when these guys are trying to find jobs, make ends meet, then they'll realize that they made a mistake. The educated and younger ones won't have too much trouble finding work, but what about the older guys?

Ford sure isn't going to be hiring, and ditto Chrysler. Who are they going to work for? Toyota or Honda? I doubt it, because these guys sound so indoctrinated with big labour propaganda and policy and companies like Toyota could see it as threatening to their current policy of not having unions.

I'll bet that GM does have a plan B though. With all the problems, Wagoner and the gang would be stupid not to have a plan (cue Buickman "Anti-Wagoner" rant).

[hyperv6]

Sad... Sad... Sad...   

If GM goes down, they may be happy for a small time For some strange reason, they'll feel some strange sense of accomplishment that they did something "monumental;" bringing down a corporate giant.

But I'll bet when these guys are trying to find jobs, make ends meet, then they'll realize that they made a mistake. The educated and younger ones won't have too much trouble finding work, but what about the older guys?

Ford sure isn't going to be hiring, and ditto Chrysler. Who are they going to work for? Toyota or Honda? I doubt it, because these guys sound so indoctrinated with big labour propaganda and policy and companies like Toyota could see it as threatening to their current policy of not having unions.

I'll bet that GM does have a plan B though. With all the problems, Wagoner and the gang would be stupid not to have a plan (cue Buickman "Anti-Wagoner" rant).

Keep in mind this was talk radio and you always get some tough talking rank and file types that will tough talk and say anything. I hope the labor leaders have their heads screwed on right and can come to a reasonable agreement with GM.

There was a time labor unions used to fight companies but many have realized they are now expendable and replacable in the world market.

The United Rubber workers should be a good example of how a union can pay dearly for a tough stance. They died a quick death in the 80's and had to disband. Rubber workers had to combine with the steel union. They are much more agreeable now but way too late for many of their members.

Too many see the big picture too late and have no one to blame but themselves.

Edited March 31, 2006 by hyperv6

[usa1]

You have the wonder when a tipping point will be reached where someone like Delphi or GM can just call the union's bluff, let them strike, and hire replacement workers. Catepiller did is some time ago and it's a much more competitve company today as a result. Northwest did it with the mechanics.

The percentage of unionized works is getting so low nowadays that it's inevitable that this will happen soon. The economy is too heathly today nationwide to do this, but during a recession, where a ready supply or replacement works are available, may be a time that this could happen.

Mark

[Polish_Kris]

I think GM should change suppliers. My best guess is to give into the Japanese a bit, by signing onto Denso.

[Guest buickman]

Drain voids, SIT DOWN! Read Live Bait and Ammo at www.greggshotwell.net. There you will find more leadership than the entire 39th floor of Ren Cen.

Buickman

Edited March 31, 2006 by buickman

[Croc]

I think I may have just changed my stance on gun control to a more Machiavellian one.

Edited March 31, 2006 by Croc

[thegriffon]

GM has been validating alternate suppliers for as many products as possible, but it will take some time to switch. The Delphi workers talk as if they have nothing to lose if Delphi goes out of business, but of course, that doesn't apply to the majority of UAW members. If I was a UAW member at a GM plant I'd be out gunning for any Delphi worker who goes on strike right now. Union solidarity be damned if these jerks cost everyone else their jobs.

Edited March 31, 2006 by thegriffon

[Mr Plow 2500HD]

We just have to look at the NYC transt workers union for a lession on irrational union behavior....Stike before you bargan(directly against what the interational says!), get what you want, and then the loud mouth disgruntled wanna be leadership types get it voted down by 7 friggin votes!!! Never under estimate the kooks

[eaton53]

All you have to do is look at how Caterpillar handled this to see how this is going to go down.

As soon as the unions walk, the white collars will be sent to the floor.

Ads will be placed... jobs $12 to $21 an hour depending on skill level. The line of applicants will stretch for a mile. Replacements are quickly hired and there is little disruption in production.

The now former Delphi union workers sit outside with their picket signs for 2 years wondering what happened. Eventually many of them cross.

This strike will be devastating only for the unions... not for Delphi or GM.

[Dragon]

seems both Delphi and the unions are both cutting of their noses to spite their faces

[FAPTurbo]

All you have to do is look at how Caterpillar handled this to see how this is going to go down.

As soon as the unions walk, the white collars will be sent to the floor.

Ads will be placed... jobs $12 to $21 an hour depending on skill level. The line of applicants will stretch for a mile. Replacements are quickly hired and there is little disruption in production.

The now former Delphi union workers sit outside with their picket signs for 2 years wondering what happened. Eventually many of them cross.

This strike will be devastating only for the unions... not for Delphi or GM.

It'd be awesome have a job like that, but I don't live near any Delphi plants, and I doubt communting 3000km's a day to Michigan from British Columbia would be healthy...

[Newbiewar]

I think the UAW's needs to start opening plants up in asia to secure their future... because they will ruin the USA if they arent playing on fair grounds

[eaton53]

It'd be awesome have a job like that, but I don't live near any Delphi plants

A whole lot of people that live near Delphi plants will be thinking the same. Like I said, the line'll be a mile long...

[FUTURE_OF_GM]

You have the wonder when a tipping point will be reached where someone like Delphi or GM can just call the union's bluff, let them strike, and hire replacement workers.  Catepiller did is some time ago and it's a much more competitve company today as a result.  Northwest did it with the mechanics. 

The percentage of unionized works is getting so low nowadays that it's inevitable that this will happen soon.  The economy is too heathly today nationwide to do this, but during a recession, where a ready supply or replacement works are available, may be a time that this could happen.

Mark

To the best of my knowledge (I could be wrong) Caterpillar pretty much canned it's union in that process. They hired new people and never looked back.

[eaton53]

To the best of my knowledge (I could be wrong) Caterpillar pretty much canned it's union in that process. They hired new people and never looked back.

http://www.fightbacknews.org/2005/02/uawcat.htm