Delphi, Unions Face Off in Bankruptcy Court Over Company Bid to Cancel Contracts

Chants of "No Justice, No Peace" and "Keep Our Jobs and Dignity" echoed outside the U.S. bankruptcy court in New York's financial district as hearings opened on whether Delphi can void its labor contracts.

Some three-dozen IUE-CWA retirees and active workers from Dayton, Ohio wearing red t-shirts greeted courtroom participants as the hearing opened on May 9 and continued May 10 and 12. With 34 witnesses scheduled, the hearing has been expanded beyond this original three-day schedule. IUE-CWA is not expected to testify in detail until the hearing is continued May 24 and 26.

Lawyers for Delphi argued that collective bargaining has failed to produce the cost-savings the company needs to survive. An attorney for the United Auto Workers accused Delphi of using the bargaining process as a fulcrum to tip the negotiations in the company's favor.

IUE-CWA pointed out that Delphi's last offer was untimely, the company has not supplied financial details necessary for fruitful negotiation and that IUE-CWA has different needs than UAW, which represents about 24,000 workers at the company. IUE-CWA, which represents 8,500 workers, argued that Delphi must tailor its proposals to take into account past sacrifices made by IUE-CWA members to help the company remain competitive.

Judge Robert Drain strongly urged all parties to use the time between the hearing dates to "sit down in a non-litigation setting and see if they can make progress."

Meanwhile, on May 5, Democrats in Congress once again wrote to Delphi Chairman and CEO Steve Miller, urging the company to bargain in good faith. Delphi has not changed from its March proposal for job and benefit cuts and a reduction of wages from $28 an hour to $22 an hour now and further to $16.50 an hour for most factory workers in September 2007. New hires would be paid $12 an hour.

"If an alternative to these proposals for wage, benefit and job cuts can be crafted, it should be sought vigorously by all parties involved," the letter said. "For such efforts to be successful, Delphi should work openly with all stakeholders and provide those stakeholders with necessary and relevant information."

Complete text of the letter signed by Reps. George Miller (Calif.), the senior Democrat on the Committee on Education and the Workforce, Rob Andrews, senior Democrat on the Subcommittee on Employer-Employee Relations, and 40 more representatives, is available on the union's website at www.iue-cwa.org.