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IUE-CWA Fighting for Members in Delphi Bankruptcy
IUE-CWA leaders are working round the clock to protect wages and benefits of 8,500 members in the wake of Delphi Corp.'s Oct. 8 bankruptcy filing. At the Oct. 11 "First Day" hearings in the U.S. Bankruptcy Court for the Southern District of New York, an IUE-CWA attorney emphasized the complexity of IUE-CWA local contracts.
The union has requested a seat on the creditors' committee, which will advise the court on the disposition of the company's assets and obligations under Chapter 11 bankruptcy. That committee will be appointed on Oct. 17.
The court approved Delphi's use of $950 million in loans to continue paying its employees and suppliers.
The company has indicated in the media that it wants to close a number of its U.S. plants, cut wages and eliminate retiree medical benefits.
While Chapter 11 bankruptcy poses enormous risks that the IUE-CWA contracts may be terminated, that cannot happen overnight, said IUE-CWA President Jim Clark. Bankruptcy code requires that the parties bargain to try to reach modified agreements. While no bargaining has yet taken place, Clark assured members that IUE-CWA is prepared and committed to that process.
"IUE-CWA calls on Delphi to act responsibly and fairly towards those who built the company," Clark said. "While we are ready and willing to try to negotiate a fair settlement, at the same time we are committed to vigorously defending our hard-won contracts and to ensuring that everyone share the pain of the bankruptcy process, including those top managers that Delphi wants to reward with lucrative retention bonuses."
"We hope that Delphi is equally committed to working toward a just resolution. Our union has long worked with Delphi – both before the spin-off from General Motors and after – to make our facilities competitive," Clark said. "We believe that our members and retirees have already sacrificed much in the promise of future benefits."
Delphi came into court seeking to schedule to file a motion on Dec. 16 to set aside its union contracts.
IUE-CWA argued that no bargaining has even occurred and that bankruptcy code requires Delphi to provide extensive information to substantiate any requests to change the contract.
Through its national agreement, eight local union agreements and two agreements the division holds outside of the national agreement, said IUE-CWA Automotive Conference Board Chairman Henry Reichard, "IUE-CWA has one of the seven largest unsecured claims in the proceedings. We will strongly advocate our right to have a seat at the table to ensure that the interests of those we represent are treated fairly in every facet of the process."
The conference board has assured members that, "IUE-CWA has an experienced negotiating, legal, research and communications team in place to fight for our members' rights. That team includes the full support and resources of CWA and outside counsel with extensive bankruptcy experience."
Updates on the Delphi bankruptcy will be posted regularly on the union's website at www.iue-cwa.org.
IUE-CWA represents 8,500 workers at 10 Delphi locations. There are currently 3,000 Delphi retirees.
The union has requested a seat on the creditors' committee, which will advise the court on the disposition of the company's assets and obligations under Chapter 11 bankruptcy. That committee will be appointed on Oct. 17.
The court approved Delphi's use of $950 million in loans to continue paying its employees and suppliers.
The company has indicated in the media that it wants to close a number of its U.S. plants, cut wages and eliminate retiree medical benefits.
While Chapter 11 bankruptcy poses enormous risks that the IUE-CWA contracts may be terminated, that cannot happen overnight, said IUE-CWA President Jim Clark. Bankruptcy code requires that the parties bargain to try to reach modified agreements. While no bargaining has yet taken place, Clark assured members that IUE-CWA is prepared and committed to that process.
"IUE-CWA calls on Delphi to act responsibly and fairly towards those who built the company," Clark said. "While we are ready and willing to try to negotiate a fair settlement, at the same time we are committed to vigorously defending our hard-won contracts and to ensuring that everyone share the pain of the bankruptcy process, including those top managers that Delphi wants to reward with lucrative retention bonuses."
"We hope that Delphi is equally committed to working toward a just resolution. Our union has long worked with Delphi – both before the spin-off from General Motors and after – to make our facilities competitive," Clark said. "We believe that our members and retirees have already sacrificed much in the promise of future benefits."
Delphi came into court seeking to schedule to file a motion on Dec. 16 to set aside its union contracts.
IUE-CWA argued that no bargaining has even occurred and that bankruptcy code requires Delphi to provide extensive information to substantiate any requests to change the contract.
Through its national agreement, eight local union agreements and two agreements the division holds outside of the national agreement, said IUE-CWA Automotive Conference Board Chairman Henry Reichard, "IUE-CWA has one of the seven largest unsecured claims in the proceedings. We will strongly advocate our right to have a seat at the table to ensure that the interests of those we represent are treated fairly in every facet of the process."
The conference board has assured members that, "IUE-CWA has an experienced negotiating, legal, research and communications team in place to fight for our members' rights. That team includes the full support and resources of CWA and outside counsel with extensive bankruptcy experience."
Updates on the Delphi bankruptcy will be posted regularly on the union's website at www.iue-cwa.org.
IUE-CWA represents 8,500 workers at 10 Delphi locations. There are currently 3,000 Delphi retirees.