Local plants at risk, Delphi warns

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This is the first time Delphi has said all operations of its local unit are at risk.

By DON SHILLING

VINDICATOR BUSINESS EDITOR

WARREN — Delphi Corp. said a lack of cooperation from union leaders could result in a shutdown of all its local plants.

Lindsey Williams, a company spokesman, said differences with Local 717 of the International Union of Electrical Workers must be resolved if the local operation "is to remain viable and core."

Core operations are those that Delphi plans to keep when it emerges from bankruptcy court protection. Williams declined to be more specific.

Don Arbogast, Local 717 shop chairman, said the only difference he's having with Delphi officials is that he wants to negotiate and they don't.

The two sides have not held any bargaining on a new local labor contract that the company says it needs, Arbogast said. Company officials gave him a set of demands Aug. 30 and asked for the union to agree to them without negotiations, he said. Arbogast said the union wants to bargain over the demands.

"I've tried and tried to establish a bargaining session," Arbogast said.

The only talks have been about a plan to hire 300 temporary workers for up to 120 days, he said.

Williams said the two sides have negotiated on the local contract.

First inkling

This is the first time that Delphi has said that all of the operations of its local unit, Delphi Packard Electric, are in jeopardy. Previously it said that much of Packard would be shut down but parts would remain.

Delphi said it would need just 1,000 of its 3,800 local hourly workers at the remaining plants. A recent attrition plan, which included retirement incentives and buyouts, will reduce hourly employment to 700 by the end of the year, however.

Delphi and its unions also are bargaining new national contracts because the company said it needs lower labor costs to emerge from bankruptcy court protection. Lawyers for the auto supplier and unions met Thursday with a bankruptcy court judge in New York to update him on the negotiations.

Delphi said afterward that the judge set up another conference Oct. 19.

Among the motions pending before the court are Delphi's request to cancel its union contracts and modify its obligations to retirees. Hearings on those motions have been in recess since May to give the company and unions time to negotiate.

Friday, September 29, 2006