IUE-CWA Reaches Agreement with Delphi

IUE-CWA has reached a tentative four-year agreement with Delphi Corp. that provides an array of choices to help members best provide for themselves and their families as the Michigan-based auto parts supplier continues its struggle to emerge from bankruptcy, division President Jim Clark announced.

"We have provided significant and meaningful options for our members as they strive to survive this difficult period," said Clark. "Our local leaders who make up the national bargaining committee made the best out of what was a deplorable situation."

Members will be able to select from choices ranging from retirement options to buyouts to buy-downs that will provide lump sum payments in return for their agreement to accept lower salaries.

"These agreements strike a balance between allowing Delphi to win new business and our members to progress with their lives," said IUE-CWA Automotive Conference Board Chairman Willie Thorpe. "From temporary workers who have advancement prospects to senior members who can decide their future within the company, this contract delivers the best opportunities for our members under our current situation."

IUE-CWA is holding informational meetings this week to go over details of the agreement with members. The bargaining committee unanimously recommended ratification.

Delphi said early this week it had also reached agreements with the Machinists, IBEW and Operating Engineers, covering about 1,000 additional workers. Delphi was continuing to negotiate with the Steelworkers, who represent a smaller number of employees.

Progress in negotiations began soon after IUE-CWA notified Delphi on July 20 of its intention to terminate its contracts. That move could have led to a strike in October.

On Aug. 2, the bankruptcy court approved the investment by Appaloosa Management LP and others of $2.55 billion, which puts Delphi a step closer to emerging from bankruptcy.

The company plans to keep open at least three plants that employ IUE-CWA members.