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IUE-CWA Decries Bankruptcy Scam by Valeo
IUE-CWA members in Rochester, N.Y., are taking on a French-owned company that is trying to abuse U.S. bankruptcy laws to void its contract with workers.
The auto parts manufacturer Valeo filed for bankruptcy protection in an effort to throw out its collective bargaining agreement with IUE-CWA Local 509, which represents more than 2,000 workers at the facility.
At a news conference in Rochester, IUE-CWA Edward Fire told reporters that three French unions representing Valeo workers in France, along with the International Metalworkers Federation, pledged to bring the issue to Valeo management.
Fire said members of the French unions also are facing problems with Valeo as the company cuts jobs and moves work to countries paying lower wages.
“We are willing to sit down in good faith and resolve these issues at the bargaining table, but we will resist Valeo’s demand for massive wage cuts and its illegitimate bankruptcy petition,” he said.
Valeo filed for bankruptcy protection in December 2001, but only for the Rochester unit. Its operations in Mexico and other locations are not included in the petition.
Just three months after negotiating an eight-year contract with IUE-CWA Local 509 in August 2000, Valeo began looking for drastic cuts in wages and benefits. The union responded by proposing numerous cost savings that, to date, Valeo has refused to consider.
“We are aware that competition is strong within the component business and we want to work with the company, but Valeo isn’t looking at other ways to save money,” said Jim Clark, chairman of the IUE-CWA automotive conference board.
Joe Griffi, president of IUE-CWA Local 509, said talks between Valeo and the local were to resume in late February.
The auto parts manufacturer Valeo filed for bankruptcy protection in an effort to throw out its collective bargaining agreement with IUE-CWA Local 509, which represents more than 2,000 workers at the facility.
At a news conference in Rochester, IUE-CWA Edward Fire told reporters that three French unions representing Valeo workers in France, along with the International Metalworkers Federation, pledged to bring the issue to Valeo management.
Fire said members of the French unions also are facing problems with Valeo as the company cuts jobs and moves work to countries paying lower wages.
“We are willing to sit down in good faith and resolve these issues at the bargaining table, but we will resist Valeo’s demand for massive wage cuts and its illegitimate bankruptcy petition,” he said.
Valeo filed for bankruptcy protection in December 2001, but only for the Rochester unit. Its operations in Mexico and other locations are not included in the petition.
Just three months after negotiating an eight-year contract with IUE-CWA Local 509 in August 2000, Valeo began looking for drastic cuts in wages and benefits. The union responded by proposing numerous cost savings that, to date, Valeo has refused to consider.
“We are aware that competition is strong within the component business and we want to work with the company, but Valeo isn’t looking at other ways to save money,” said Jim Clark, chairman of the IUE-CWA automotive conference board.
Joe Griffi, president of IUE-CWA Local 509, said talks between Valeo and the local were to resume in late February.