The United Auto Workers union has responded to Delphi’s request to a bankruptcy court today to void union contracts. Delphi was formerly a part of GM, and remains a major parts supplier to the company. The company went bankrupt last year. “Delphi’s misuse of the bankruptcy procedure to circumvent the collective bargaining process and slash jobs and wages and drastically reduce health care, retirement and other hard-won benefits or eliminate them altogether is a travesty and a concern for every American,” said PResident Ron Gettelfinger and Vice President Richard Shoemaker in a statement. “Delphi’s proposal goes far beyond cutting wages and benefits for active and retired workers. Delphi’s outrageous proposal would slash the company’s UAW-represented hourly workforce by approximately 75 percent, devastating Delphi workers, their families and their communities.” The UAW said if the court approves Delphi’s request, a strike may be unavoidable. A strike would cost GM $8 billion per 60 days.
“Delphi’s filing Section 1113 and Section 1114 motions with the U.S. bankruptcy court — like the quality of the proposals it has made to the UAW — is another indication that Delphi has never been serious about finding a solution to its current problems through the collective bargaining process.”
“The changes touted in Delphi’s most recent proposal are entirely contingent on GM’s financial support, but GM has advised us and stated publicly that it has not agreed to provide that funding. In other words, Delphi’s latest proposal is basically a reiteration of its previous proposal.”
“Last week, after many long, hard days and nights of negotiations, the UAW, GM and Delphi reached agreement on a Special Attrition Program that will reduce Delphi’s costs. That agreement, which was reached without an arbitrary, self-imposed deadline, created momentum that could have allowed the UAW, GM and Delphi to make progress in discussions focusing on other areas.”
“Unfortunately, Delphi’s filing of its 1113/1114 motions kills that momentum. Indeed, today it appears there is no basis for continuing discussions.”
“In the event the court rejects the UAW-Delphi contract and Delphi imposes the terms of its last proposal, it appears that it will be impossible to avoid a long strike.”
“The UAW has worked diligently in good faith to resolve the Delphi situation through collective bargaining instead of through a lawyer-driven court process or confrontation. Regrettably, Delphi has chosen another path.”
03/31, 12:49 PM
posted by:
Ahk-Med
One of my economics professors said if you want to win a game of chicken, throw your steering wheel out the window. When the other driver see’s that you can’t change course he has no choice but to change his own course.
Looks like both steering wheels are being tossed out the window…
03/31, 12:56 PM
posted by:
Joel A
Regarding Ahk-Med’s “chicken” comment:
And the American public’s going to have to clean up this mess
03/31, 1:10 PM
posted by:
JoJohn
Yeah it’s a murder suicide, and I hope the taxpayers won’t have to cover those pensions
03/31, 1:30 PM
posted by:
JW
Im all for the UAW on this!… It wiss be a mess though.
03/31, 1:36 PM
posted by:
Adam
Nationalized healthcare could have prevented this.
03/31, 2:02 PM
posted by:
John
Hope everyone likes buying Toyotas because that’s all that’s going to be for sale in 5 years. Or something from China.
03/31, 3:05 PM
posted by:
JoJohn
Nationalized healthcare will bump your taxes up to 50 percent – worth noting, if you really love taxes. The UAW contracts are still based on agreements made during Detroit’s glory days in the 60’s when they were hugely profitable, and from what I’ve heard the plants remaining in the US resemble some sort of bizarro world where everyone tries to get promoted to “janitor”, janitors get paid 100,000 bucks a year.
03/31, 3:43 PM
posted by:
Anonymous
The minimum wage in Pakistan is something like 35cents per hour – China 69 cents. Those fat criminals down at UAW hqtrs. on Jefferson Ave knew this was coming.. All they really cared about was jacking their membership for enough dues to buy upper floor condos in Boca Raton and bl_wjobs in Vegas.
Maybe they expect Washington to ‘protect’ them again like in the 80’s where you and I said; “Screw it – add $1500 to a Honda (made in Japan at the time) – I’ll still buy it before some K-Car or X-body piece of s_it.”
It’s sad because it’s not just Delphi’s workers that will get hurt.
jim
03/31, 3:45 PM
posted by:
west
Way to go Jim!
03/31, 4:44 PM
posted by:
JoJohn
The question is – when GM and Ford folds – will the UAW be able to get in to the japanese and european plants in the US, stick it to them union guys, do unto them as you have done onto the big three!!
03/31, 5:53 PM
posted by:
manny
i would love to see that happen.
toyota exec: uh… why is our budget so much higher?
toyota exec 2: the UAW wants us to pay workers at the new texas plant $72 an hour.
toyota exec: ****! better start paying them in yen… cash.
04/01, 7:40 PM
posted by:
BB
UAW is a dinosaur organization in this New World Order. I’ve seen company employees from US plants of Toyota and they are doing more than fine.
No modern company would consider going with union workers. They shouldn’t because it doesn’t make sense to give those workers wages that are not in tune with mainstream America. UAW employees should have seen this coming years ago and jumped shipped to Japanese and European American plants.
04/02, 1:41 PM
posted by:
Mark
Adam,
Nationalized healthcare isn’t the answer.
Building cars people want to buy, so parts suppliers like Delphi can sell their wares, now that is the answer.
John,
People do like buying Toyotas, that’s why the American auto industry is on its knees. See above comment to Adam.
04/03, 11:50 AM
posted by:
JoJohn
The insurance companies are tough, yes, but at least in the business world the companies that lose money get eliminated, not so with government. Firing government beaurocrats is harder than union workers, and there is no limit to the amount of waste the government can and will commit – just look at how they handled katrina with all those stupid trailers they left sitting in some field – at least the insurance company is trying to cut costs – the government, with the help of nationalized healthcare will just keep eating more and more and more of your paycheck, and giving you less and less in return – look how much they screwed up the public education system – other countries laugh at us because our h.s. grads can’t read, tell me more government is a great answer.
04/03, 12:00 PM
posted by:
JoJohn
I’ll just add – I do think we’ll end up with some sort of national healthcare – I don’t see an alternative, but I hate to hear anyone say “it’s a great answer!” because giving money to the government is like flushing you money down the toilet, or giving it to a junkie.