Delphi actions could bankrupt GM (Is a strike coming that could force GM into bankruptcy?)

CNN ^ | Friday, March 31, 2006 | Chris Isidore

[MinorityRepublican]

NEW YORK (CNNMoney.com) - Delphi announced plans Friday to throw out its union contracts and shed more than 28,000 workers as it shut down most of its U.S. operations -- moves that could spark strikes at the auto parts maker and a possible bankruptcy filing at its biggest customer, General Motors.

Delphi (Research) filed motions with the federal judge overseeing its bankruptcy proceedings to shed contracts with the United Auto Workers union (UAW) and another union that it says it can no longer afford. It also announced plans to sell or close 21 of its 29 plants.

But it said it was encouraged by progress in talks with the unions, adding it's hopeful an agreement can be reached on concessions before a court hearing scheduled for early May.

The 21 plants that Delphi wants to shed employ 20,000 hourly workers, or about two-thirds of its union work force in the U.S. The company also plans to cut another 8,500 non-union workers worldwide, or about a quarter of that staff.

"While our court filings are necessary procedural steps to enable action that may become necessary at some point in the future, we are singularly focused on reaching a consensual resolution with all of our unions and GM before any court hearing is necessary," said a statement from Delphi CEO Steve Miller.

But the UAW, the company's largest union, attacked the court filing, saying it killed momentum towards a labor agreement.

"Today it appears there is no basis for continuing discussions," UAW President Ron Gettelfinger and union VP Richard Shoemaker, the top negotiator with Delphi, said in a statement.

"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," they said.

[infidel29]

Question: If the judge dissolves the contract, there can be no strike since Delphi and the UAW are no longer contracted together, correct? (technically speaking)

If so, the union walks out and Delphi says "bye, thank you for the years of partnership, but Delphi is choosing to go in another direction with our work force."

Why do Delphi, GM and the rest HAVE to deal with the UAW? They are the owners of the companies, they should be able to hire whoever they want to build their cars.

[xarmydog]

As I have posted before,they cry about the job situation,but so many people want their cut you have to spend an enormous amount of money just to get an ok.I speak from experience.

[PCBMan]

"If I remember correctly, Delphi has the patents on "Quadrasteer"..."

True, but not enough buyers were interested in it.

[MinorityRepublican]

This is all posturing. The analysts and insiders I talk to all see Delphi avoiding a crippling strike.

WImps.

[hdstmf]

Unions (greed) will be the end of industries where they exist.
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Looks like the chickens have come home to roost and they are being eaten by unions.

[MinorityRepublican]

Bttt

[staytrue]

columbus has an old fisher body plant that I think is now delphi

channel six had some guy on who said "we were planning on a strike, but since the plant is closing, I guess we won't have to do that now"

[MinorityRepublican]

Bttt

[BurbankKarl]

GM will show a Pontiac G6 GXP concept at the New York Auto Show in a couple of weeks. Exterior modifications include a redesigned front fascia, featuring an integrated lower air dam and an aggressive chrome treatment of Pontiac's twin-port grille, as well as a twin air scoop hood. A new rear fascia features dual chrome-tipped exhausts and unique "hammerhead" spoiler. Side rocker panels extensions, 19-inch wheels, vented cross-drilled brake rotors and reduced suspension height (25-mm) complete the GXP's exterior transformation. Interior mods include red accents on the instrument cluster, center stack and door controls to go with the red leather seat and door panel inserts. The G6 GXP is powered by a modified 3.9-liter V-6 with ram air induction (with K&N air filter) and a cat-back free flowing exhaust system developing 270 horsepower (202 kw) and 259 lb.-ft. of torque (358 Nm). A 6-speed gearbox completes the package.

[petitfour]

Like rebuilding a city below sea level? Or giving welfare to illegal aliens?