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Delphi Unions Criticize Company's 'Final' Offer
Joining the leaders of five other major industrial unions, IUE-CWA on Nov. 17 criticized Delphi Corp.'s new "final" offer that would still cut 24,000 jobs, close factories and slash the wages and benefits of its hourly wage workers as part of its restructuring under Chapter 11 bankruptcy.
Citing numerous efforts by the union to work with the company to make it competitive, IUE-CWA Automotive Conference Board Chairman Henry Reichard said "poor management decisions and corporate greed conspired to keep our shops, like most U.S. facilities, operating on the edge."
"Delphi rushed into bankruptcy with the primary purpose of having legal cover to break the promises it made to its workers and retirees," he stated. "Delphi must not be allowed to succeed in forcing workers to pick up the tab for its misdeeds and mismanagement."
Leaders of all six unions comprising the Mobilizing@Delphi coalition stood together at a news conference in Detroit, where they called Delphi's proposal "insulting" and warned that the company and its unions are on "a possible collision course." In addition to cutting its hourly workforce from 34,000 to about 10,000 workers, Delphi wants to roll back the average base wage to around $12 an hour. IUE-CWA, the second-largest union at Delphi, represents about 8,500 workers.
The coalition – comprising IUE-CWA, the Autoworkers, Steelworkers, IBEW, Machinists and Operating Engineers – also took issue with Delphi's proposed executive compensation plan that would pay 486 top executives about $88 million when it emerges from bankruptcy, citing it as an example of corporate greed and insensitivity to the plight of workers and their families.
If the company and its unions cannot agree on modified contracts by a deadline of Dec. 16, Delphi has said it will file a motion asking the bankruptcy court to void the current collective bargaining agreements.
"This fight is not just about 34,000 Delphi workers," Reichard said. "If Delphi is successful at implementing its devastating proposal, there will be a ripple effect that will spread across the country as company after company follows suit."
Citing numerous efforts by the union to work with the company to make it competitive, IUE-CWA Automotive Conference Board Chairman Henry Reichard said "poor management decisions and corporate greed conspired to keep our shops, like most U.S. facilities, operating on the edge."
"Delphi rushed into bankruptcy with the primary purpose of having legal cover to break the promises it made to its workers and retirees," he stated. "Delphi must not be allowed to succeed in forcing workers to pick up the tab for its misdeeds and mismanagement."
Leaders of all six unions comprising the Mobilizing@Delphi coalition stood together at a news conference in Detroit, where they called Delphi's proposal "insulting" and warned that the company and its unions are on "a possible collision course." In addition to cutting its hourly workforce from 34,000 to about 10,000 workers, Delphi wants to roll back the average base wage to around $12 an hour. IUE-CWA, the second-largest union at Delphi, represents about 8,500 workers.
The coalition – comprising IUE-CWA, the Autoworkers, Steelworkers, IBEW, Machinists and Operating Engineers – also took issue with Delphi's proposed executive compensation plan that would pay 486 top executives about $88 million when it emerges from bankruptcy, citing it as an example of corporate greed and insensitivity to the plight of workers and their families.
If the company and its unions cannot agree on modified contracts by a deadline of Dec. 16, Delphi has said it will file a motion asking the bankruptcy court to void the current collective bargaining agreements.
"This fight is not just about 34,000 Delphi workers," Reichard said. "If Delphi is successful at implementing its devastating proposal, there will be a ripple effect that will spread across the country as company after company follows suit."