IUE-CWA Puts Delphi on Notice, a Strike Possible

IUE-CWA notified Delphi Corp. of its intent to terminate its local and national contracts in a letter delivered to the company on July 18.  The notice paves the way for a possible strike in October if the union and company cannot reach a new agreement covering more than 2,000 workers.

The action came as talks continued to drag on with little or no movement by the company on key issues including job security, wages and benefits.  As part of its termination notice, IUE-CWA also withdrew its permission for Delphi to use temporary workers at represented facilities. The company has the option of cutting production or hiring the workers permanently.

"Delphi has not delivered proposals that meet our members' needs," said IUE-CWA President Jim Clark. From the start we have stated that IUE-CWA members want both their jobs and dignity intact at the end of the process. We are tired of spinning our wheels in negotiations while Delphi falls short of these basic demands."

The termination notice is the first step toward a national strike at Delphi, pending the authorization of the members and CWA's Executive Board and president.  Under terms of the existing contract, the notice allows the locals to strike effective 12:01 a.m. on Oct. 13. 

"There is still much time to change our course," said IUE-CWA Automotive Conference Board Chairman Willie Thorpe. "But we cannot sit back and be unprepared. In our estimation, given the current state of talks, a strike is a real possibility and we need to act accordingly."

On July 19, Bankruptcy Judge Robert Drain approved a new contract covering 17,000 employees represented by the United Auto Workers, bringing Delphi a step closer toward completing its restructuring and emerging from Chapter 11 bankruptcy.

The company's restructuring plan is further dependent upon a significant infusion of capital from an investment group headed by Appaloosa Management LP. Appaloosa has the option to withdraw its offer of $2.55 billion if the court has not approved it by Aug. 16. Delphi has yet to reach new labor agreements with several unions including IUE-CWA that together represent about 3,000 workers.

Delphi plans to close 21 of 29 of its plants in the United States and slash about four-fifths of its U.S. workforce.