Delphi agreement brings hope for future

On June 29, some 17,000 UAW-represented workers at 20 Delphi plants voted to ratify an agreement with General Motors’ former parts operation by a majority of 68-32 percent.

The vote, along with court approval of the deal on July 20, moved Delphi closer to emerging out of bankruptcy.

“The UAW never believed that bankruptcy was necessary for GM's former parts operation to succeed as a successful parts supplier,” said UAW President Ron Gettelfinger.

“However, we had an obligation to our membership to make a serious effort to achieve a negotiated settlement.”

For the thousands of Delphi new hires like Brandon Bellinger, a job setter at the Delphi Flint (Mich.) East plant, the agreement brought hope for the future.

“I had faith in my union and certainly the agreement was far better than the original offer the company made last year when they were demanding $9 an hour,” said Bellinger, a 29-year-old member of UAW Local 651. “I’m glad I took the risk to hire in here last May.”

Under the agreement, four of the supplier’s plants will remain owned and operated by Delphi in Rochester N.Y., Grand Rapids, Mich., Lockport, N.Y., and Kokomo, Ind. Four plants in Adrian and Saginaw, Mich.; Sandusky, Ohio, and Cottondale, Ala., will be sold with GM agreeing to retain business at three of the sites.

Three other Delphi plants, including Flint East, Dayton, Ohio, and Saginaw (Mich.) Mfg. will be guaranteed work although managed by a third-party firm until 2015.

Delphi will proceed with the closure of 10 plants.

Although Delphi initially demanded steep wage cuts, the agreement provides for wage increases for production workers like Bellinger, and also skilled-trades workers.

The agreement gives UAW members unprecedented protections and options in the face of Delphi’s bankruptcy filing, such as:

• Buy Down payments of up to $105,000 for traditional production workers who remain at Delphi on Oct. 1, 2007.

• Incentive options for retirement.

• Buy Out options of $140,000 to UAW-Delphi workers with 10 years or more seniority and $70,000 for those with fewer than 10 years.

• Transfer rights back to GM for UAW-Delphi workers hired after Oct. 18, 1999, and before Oct. 8, 2005.

The wage gains and contract protections, said UAW Vice President Cal Rapson, were made possible because workers came together to beat back extreme demands from a company that used a mechanical bankruptcy filing to inflict pain on workers, families and communities.

“We’re proud of the persistent and visible opposition to Delphi’s actions by UAW members at Delphi locations across the country,” said Rapson, who directs the union’s GM Department, which also oversees Delphi.