Published: Friday, October 13, 2006
Delphi contract progress pleases union
GM is close to a deal to subsidize wages at Delphi, report says.
By DON SHILLING
WARREN — A local union official at Delphi Packard Electric is pleased with the pace of talks on a new labor contract for the first time since the company entered bankruptcy.
"The talks here have intensified the last couple of days," said Don Arbogast, shop chairman of Local 717 of the International Union of Electrical Workers.
Before this week, negotiators on both sides were prevented from talking about certain items, which blocked any progress, Arbogast said. Corporate officials restrained local managers in the discussions, and the international did the same to officials at the local union, he said.
Arbogast declined to comment on what was being discussed, other than to say that "talks have expanded significantly." Delphi has been seeking ways to cut its labor costs.
Warning from Delphi
This week's bargaining follows a warning from Delphi Corp. that it was considering closing or selling all of the local Packard plants because of the slow pace of the talks. Delphi previously said it would keep part of Packard's local operations, which would require about 1,000 of its 3,800 hourly jobs.
Officials from the parent company blamed officials of Local 717 last month for stalling contract talks, but Arbogast responded by saying that Delphi had dropped off a list of demands and refused to bargain over them.
Packard and union officials aren't the only ones getting serious about issues.
The Wall Street Journal said General Motors Corp. and Delphi are close to reaching deals on supply contracts and payments from the automaker that would subsidize wages at Delphi. GM used to own the parts maker and has financial obligations to it.
Lauren Asplen, a spokeswoman for the IUE, said the union isn't involved in these talks, so it doesn't have any information about them.
"If GM is putting money on the table, obviously that's a positive development, but we'll have to wait until we can evaluate it," she said.
Delphi has proposed cutting the top hourly pay for its production workers from $27 to $12.50 unless it receives help from GM. In that case, the pay would be cut gradually to $16.50.
Asplen said the union doesn't know if the current talks between GM and Delphi still involve those pay rates.
Another round planned
Yet another round of talks is being held on a national labor contract by the IUE and Delphi. Asplen said those talks are continuing every day and are mostly revolving around issues of staffing and wages.
Delphi also wants to bargain a new contract with its other unions, including the United Auto Workers.
Delphi and its unions are to report progress on the talks to a bankruptcy court judge in New York on Oct. 19. Hearings on Delphi's request to have its labor contracts voided have been on hold since May to give bargaining a chance.
In the meantime, Delphi has offered retirement incentives and buyouts to encourage workers to leave the company. About 20,000 of the company's 27,500 hourly workers have agreed to retire or quit by the end of the year. All but 700 of the hourly workers at Packard's local operations are taking the incentives.
Automotive News reported this week that Roger Penske is interested in buying Delphi Steering if the labor contracts are settled. Delphi Steering has plants in 13 countries and makes steering columns, pumps and related parts. Penske owns racing teams and a variety of automotive and trucking companies.
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