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IUE-CWA Defends Members' Rights at Delphi
Faced with Delphi's threat to declare bankruptcy Oct. 17 unless it can reach agreement with its unions, IUE-CWA's Automotive Conference Board is fighting to protect members' and retirees' rights and benefits.
"Delphi has maneuvered to put its North American operations in this position," IUE-CWA President Jim Clark said. "Over the years, our union has proven willing to work with Delphi to maintain competitiveness, but we will not just hand over everything we have worked so hard to build."
Delphi - one of the world's largest auto parts suppliers and formerly owned by General Motors - claims it can only avoid bankruptcy if IUE-CWA members, Autoworkers and Steelworkers ratify contracts with concessions. The company set Oct. 17 as a deadline so it could file just before new, stricter federal bankruptcy laws go into effect.
"GM's relentless squeeze on prices and profits and Delphi's own mismanagement have created this crisis," said Henry Reichard, chair of the conference board. "Our members have done their jobs and delivered high quality products, but we've seen no capital investment and no long-term strategy for growth."
Union leaders say Delphi's march toward bankruptcy has been anticipated since the company hired Robert Miller to succeed J.T. Battenberg as CEO in July. Miller is known for taking failing industrial companies into bankruptcy, dumping their pension plans onto taxpayers, then selling the new, legacy-free company for huge profits.
If Delphi does declare bankruptcy, before or after Oct. 17, members won't see any immediate change, IUE-CWA leaders said. All labor contracts would remain in effect unless changed by agreement between the parties or by an order of the federal bankruptcy judge.
"IUE-CWA is marshalling its forces and is consulting with experts in bankruptcy law to ensure that we are in the best position possible to defend member and retiree rights," Reichard said.
IUE-CWA represents nearly 8,000 members at eight Delphi plants. Between IUE-CWA and UAW, there are 12,000 retirees or their survivors in the pension plan.
"Delphi has maneuvered to put its North American operations in this position," IUE-CWA President Jim Clark said. "Over the years, our union has proven willing to work with Delphi to maintain competitiveness, but we will not just hand over everything we have worked so hard to build."
Delphi - one of the world's largest auto parts suppliers and formerly owned by General Motors - claims it can only avoid bankruptcy if IUE-CWA members, Autoworkers and Steelworkers ratify contracts with concessions. The company set Oct. 17 as a deadline so it could file just before new, stricter federal bankruptcy laws go into effect.
"GM's relentless squeeze on prices and profits and Delphi's own mismanagement have created this crisis," said Henry Reichard, chair of the conference board. "Our members have done their jobs and delivered high quality products, but we've seen no capital investment and no long-term strategy for growth."
Union leaders say Delphi's march toward bankruptcy has been anticipated since the company hired Robert Miller to succeed J.T. Battenberg as CEO in July. Miller is known for taking failing industrial companies into bankruptcy, dumping their pension plans onto taxpayers, then selling the new, legacy-free company for huge profits.
If Delphi does declare bankruptcy, before or after Oct. 17, members won't see any immediate change, IUE-CWA leaders said. All labor contracts would remain in effect unless changed by agreement between the parties or by an order of the federal bankruptcy judge.
"IUE-CWA is marshalling its forces and is consulting with experts in bankruptcy law to ensure that we are in the best position possible to defend member and retiree rights," Reichard said.
IUE-CWA represents nearly 8,000 members at eight Delphi plants. Between IUE-CWA and UAW, there are 12,000 retirees or their survivors in the pension plan.