Posted on 03/31/2006 12:50:44 PM PST by 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.
(Excerpt) Read more at money.cnn.com ...
It was eventual.
It looks like they're in the blue state areas.
Perhaps, there's a silver lining here.
Hillary wants a "Marshall Plan" for GM and Ford.
One can only hope. Wonder what it will ultimately cost Delphi?
What a dumbass map above. They put Lockport and Rochester where they aren't. Hardly even close, especially for Lockport.
Unions (greed) will be the end of industries where they exist.
This could be trouble for a lot more than GM. I know that Navistar International uses a lot of Delphi parts and that they are back ordered (regulation change).
GM preferred is up on this news of rationality premeating the system
A lot of people soaked money out of the system through the union, big time, and for doing little or nothing (the reports abound), but it will be the people who worked their butts off that will get hurt.
Why is this such a familiar scenario?
Delphi is moving all the jobs to Mexico. Perhaps they'll take some illegals with them.
I would close all the plants except for those located in states with the right to work law.
"Delphi actions could bankrupt GM (Is a strike coming that could force GM into bankruptcy?)"
God I hope so. Close it down. Blame the RATS.
If I remember correctly, Delphi has the patents on "Quadrasteer" which is the four-wheel steering that was available on GMC trucks until 2005. Nifty product that would give a long bed crew-cab pickup the same turning radius as a Toyota Camry.
There will not be a strike, at least not a long one.
This is all posturing. The analysts and insiders I talk to all see Delphi avoiding a crippling strike.
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