IUE-CWA Reaches Buyout Agreement for 3,000 Delphi Workers

IUE-CWA reached agreement with Delphi and General Motors on a special attrition program aimed at providing "soft landings" to thousands of members who face potential plant closings or significant pay cuts as a result of Delphi's bankruptcy filing.

"We have made great progress in resolving the first part of a very complex puzzle," said IUE-CWA Automotive Conference Board Chairman Willie Thorpe, in announcing the agreement the day following his election to succeed previous chairman Henry Reichard, who died on June 5. "Our members now have options that can provide them with some financial security. Next our focus turns to crafting an agreement for those who remain in the plants that gives them a job worth having."

The package provides special retirement options for 3,290 members who can either take a $35,000 bonus for a normal or early retirement, take a retirement based on 50 years of age and 10 years' seniority or, if they have at least 26 years service, remain with the company until they have accrued 30 years' service and full retirement eligibility.

The union made gains in the buyout offerings by creating a third tier for workers compared with an earlier attrition program available to both traditional and competitive rate workers. Whether retirement eligible or not, workers with at least 10 years' seniority can take a $140,000 buyout payment to sever ties with the company. Workers with between three and 10 years' seniority are eligible for a $70,000 buyout, while those with between one year and three years' seniority can receive $40,000. Workers taking the buyout will give up any claim to retiree health benefits.

"IUE-CWA is committed to resolving our issues with Delphi at the bargaining table," said IUE-CWA President Jim Clark, who was a key participant in the talks. "Delphi must understand that getting a court to void our contracts doesn't get us where we need to go."

Court hearings on Delphi's 1113/1114 motion to void labor agreements and retiree obligations have been recessed until August 11.  Bargaining over wages, benefits and working conditions at IUE-CWA-represented facilities will resume shortly.

General Motors is a party to the attrition agreement. The corporation agreed to pay half of the buyout payments and cover post-retirement benefits for those retiring.