May/June 2006

Delphi Timeline

(Visit the Delphi Update section of this web site for the latest information.)

2005

Oct. 8: Delphi files for bankruptcy protection.

2006

Feb. 10: Judge rules in favor of Delphi executive bonus plan.

Feb. 17: Delphi postpones petitioning the court for the third time since December 2005.

March 22: UAW reaches attrition agreement with GM and Delphi.

March 31: Delphi files motions seeking court approval to void all union contracts
and modify retiree benfits.

April 7: Judge approves attrition plan.

What’s next: Section 1113-1114 trial scheduled for May 9.

Closing loopholes

Bankruptcy reform bill; sign-on letter to Miller

Management shouldn’t be allowed to enrich themselves on the backs of workers and retirees — and companies shouldn’t be allowed to shift resources and production overseas while pleading poverty in an attempt to slash wages, benefits and U.S. jobs.

Sen. Evan Bayh of Indiana and Rep. John Conyers of Michigan introduced a bankruptcy reform bill in April designed to eliminate abuse of the bankruptcy process, which has occurred not only at Delphi but during several other recent corporate bankruptcies.

The Fairness and Accountability in Reorganizations Act of 2006 (S. 2556; H.R. 5113) would close some of the loopholes that have allowed executives, such as those at Delphi Corp., to reward themselves while cutting wages and benefits for workers.

This bill also would require bankruptcy judges to take into consideration a company's foreign operations, as well as its domestic ones, in ruling on Section 1113 and 1114 motions to reject collective-bargaining agreements and retiree health benefits.

In addition, Sen. Edward M. Kennedy of Massachusetts and Rep. George Miller of California are circulating sign-on letters to Delphi CEO Robert “Steve” Miller calling on the company to provide workers, retirees and their communities with current and necessary financial information to show whether proposed wage and benefit cuts and facility closings are truly necessary.

Contact your members of Congress at (202) 224-3121 and urge them to co-sponsor the Bayh-Conyers bankruptcy reform bill (S. 2556; H.R. 5113).

Judge approves GM health care plan for UAW retirees

In March a federal judge approved the recent health care plan that UAW GM hourly workers ratified in November. Under the new plan:

• GM hourly retirees will pay monthly contributions, annual deductibles and co-payments.

• They will pay up to $752 annually per family and $370 for annually for an individual.

• Those hourly retirees who receive pensions of less than $8,000 a year will be exempt.

• Active GM hourly workers will defer part of their future pay increases to a new fund to help pay for retirees’ coverage.

• GM will contribute $3 billion to that fund through 2011.