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Arbitration Win at Delphi Guarantees 1,500 Jobs
IUE-CWA has won a landmark arbitration decision forcing Delphi to abide by contract provisions guaranteeing 1,500 jobs for members at the Harrison Thermal plant in Moraine, Ohio.
Arbitrator Lon Moeller ordered Delphi to reinstate, with back pay, all workers laid off up to the 1,500-job guarantee. Workers also are to be made whole in terms of fringe benefits and seniority.
"IUE-CWA is gratified that our members' rights to a secure job has been upheld," IUE-CWA President Edward Fire said. "Workers gave up $251 million in wages and benefits in exchange for this job guarantee. If the company could avoid providing jobs, what incentive would there be for future negotiations on these types of issues?"
The victory is a big one for the IUE-CWA Automotive Conference Board, chaired by James D. Clark. "This arbitration goes to the core of our job security issues," said Clark, whose staff presented the case. "Though this case involves a single plant, we fought on behalf of each of the more than 20,000 auto workers we represent to ensure that these types of agreements are enforceable."
In January of this year, Delphi had laid off 500 workers, falling below the guarantees that were established in a 1996 Memorandum of Understanding. Since then, 94 workers have been recalled, leaving 406 workers without a job with more layoffs projected.
Arbitrator Anthony Sinicropi sustained the union's grievance over the layoffs in February, but left the question of remedy open for further investigation. After Sinicropi passed away July 31, Moeller took over the case at the request of IUE-CWA and Delphi.
Delphi had protested that since its spin-off from General Motors in 1999 the agreement was no longer enforceable because GM could source work elsewhere and Delphi had no recourse. Delphi cited the volatility in the auto and auto parts industry and global competitive concerns as additional reasons it should not have to honor the 1,500-job minimum.
Moeller rejected Delphi's arguments, finding that the company failed to demonstrate the "commercial impracticability" of its claim. IUE-CWA pointed out that Delphi has been systematically moving the plant's compressor work to Mexico, Hungary, Korea and elsewhere. The Moraine facility is flexible enough to support compressor work or to be retooled for other production, IUE-CWA argued.
Delphi's promise provided the consideration for the union's agreement to wage and benefit concessions and allowed the union to sell what many in the bargaining unit likely considered a tough pill to swallow," said Moeller. "To now declare the guarantee null and void would provide the union with nothing from its bargain with the company."
Arbitrator Lon Moeller ordered Delphi to reinstate, with back pay, all workers laid off up to the 1,500-job guarantee. Workers also are to be made whole in terms of fringe benefits and seniority.
"IUE-CWA is gratified that our members' rights to a secure job has been upheld," IUE-CWA President Edward Fire said. "Workers gave up $251 million in wages and benefits in exchange for this job guarantee. If the company could avoid providing jobs, what incentive would there be for future negotiations on these types of issues?"
The victory is a big one for the IUE-CWA Automotive Conference Board, chaired by James D. Clark. "This arbitration goes to the core of our job security issues," said Clark, whose staff presented the case. "Though this case involves a single plant, we fought on behalf of each of the more than 20,000 auto workers we represent to ensure that these types of agreements are enforceable."
In January of this year, Delphi had laid off 500 workers, falling below the guarantees that were established in a 1996 Memorandum of Understanding. Since then, 94 workers have been recalled, leaving 406 workers without a job with more layoffs projected.
Arbitrator Anthony Sinicropi sustained the union's grievance over the layoffs in February, but left the question of remedy open for further investigation. After Sinicropi passed away July 31, Moeller took over the case at the request of IUE-CWA and Delphi.
Delphi had protested that since its spin-off from General Motors in 1999 the agreement was no longer enforceable because GM could source work elsewhere and Delphi had no recourse. Delphi cited the volatility in the auto and auto parts industry and global competitive concerns as additional reasons it should not have to honor the 1,500-job minimum.
Moeller rejected Delphi's arguments, finding that the company failed to demonstrate the "commercial impracticability" of its claim. IUE-CWA pointed out that Delphi has been systematically moving the plant's compressor work to Mexico, Hungary, Korea and elsewhere. The Moraine facility is flexible enough to support compressor work or to be retooled for other production, IUE-CWA argued.
Delphi's promise provided the consideration for the union's agreement to wage and benefit concessions and allowed the union to sell what many in the bargaining unit likely considered a tough pill to swallow," said Moeller. "To now declare the guarantee null and void would provide the union with nothing from its bargain with the company."