UAWNDM Communications Portal

Delphi Says Court Can Cancel Labor Contracts

From Associated Press

By Dee-Ann Durbin

Delphi Corp. Says in Filing That Court Can Reject Labor Agreements

Auto parts supplier Delphi Corp. said in a filing Monday that a federal bankruptcy court can immediately cancel its labor agreements instead of allowing Delphi to cancel them on its own, an action that could lead to a devastating strike.

The legal filing Monday boosts the stakes in Delphi’s battle with its unions.

Adding to Delphi’s struggle, the auto supplier said Monday that General Motors Corp. will start paying lower prices for Delphi parts after it failed to reach an agreement to continue paying higher rates to its main supplier.

GM had agreed to temporarily forgo price reductions after Delphi filed for bankruptcy in October, but the automaker will no longer forgo those reductions, Delphi said in a filing with the Securities and Exchange Commission.

In a filing with the U.S. Bankruptcy Court, Delphi countered the unions’ contention that wage cuts aren’t necessary, saying it expects to lose $2 billion this year and $5 billion through 2010 unless changes are made.

“Under these projections, Delphi simply will not be able to continue to operate unless it can achieve significant modifications to its business,” Delphi said in the filing.

Delphi filed a motion March 31 asking bankruptcy Judge Robert Drain to give it the authority to cancel its union contracts if it failed to reach an agreement to lower wages. Delphi’s unions filed objections last month, and Delphi responded Monday. Drain is scheduled to consider Delphi’s request May 9.

Delphi said it believes Drain can give it the authority to reject its own labor agreements with 10 days notice, but the United Auto Workers says that is illegal and would give Delphi too much bargaining power.

Delphi said it requested the authority to reject its own agreements because it believed it was in all parties’ best interest to come to an agreement themselves. But Delphi said if Drain doesn’t believe Delphi should have that authority, he can modify Delphi’s motion and cancel the contracts on his own.

The UAW and other unions representing Delphi’s 33,000 U.S. hourly workers have threatened to strike if the contracts are rejected. A strike could have a serious impact on Delphi as well as GM, Delphi’s former parent and largest customer.

Delphi also attacked the unions’ arguments that there hasn’t been enough time or information to accept Delphi’s wage cut proposals. Delphi said it has been talking to its unions about wage reductions since last summer and has provided all relevant information. It said some unions have asked for unnecessary details, such as the name and salary of every management employee at Delphi.

Several unions with few Delphi employees — such as the International Union of Operating Engineers, which represents 20 powerhouse operators at Delphi plant — complained that Delphi ignored its members while it focused on negotiating buyouts for UAW members.

Delphi responded that its unions were aware it had a history of bargaining with the largest union and then extending that agreement to other unions. Delphi also questioned why none of Delphi’s major unions, including the UAW and the United Steelworkers, has ever provided a counterproposal.

Under its latest proposal, Delphi wants to lower wages from $27 an hour to $16.50 an hour by 2007. That proposal would depend on some funding from GM, which has not yet agreed to supplement workers’ wages. GM has agreed to a fund a buyout offer for 17,000 Delphi hourly workers.

Although they agreed on the buyouts, GM and Delphi failed to reach an agreement on pricing. GM paid higher prices for its parts through the first quarter, but Delphi said its financial statements will reflect the previously agreed-to price cuts beginning with the second quarter of this year.

Delphi says it’s losing money on many of its contracts with GM and plans to ask the bankruptcy court to reject some unprofitable contracts with the automaker on May 12. Delphi’s initial motion covers around half of its annual volume with GM. GM spent $12.8 billion on Delphi parts in 2005, or nearly half of Delphi’s annual revenue.

GM shares fell 24 cents to close at $22.64 on the New York Stock Exchange.

Delphi Asks for Strike-Breakers

Delphi: Workers Wanted

by John Dempsey/The Kokomo Tribune

Company plans to use referral system to fill local vacancies. United Auto Workers Local 292 and Delphi Corp. will turn to Kokomo employees for a list of candidates who might replace hourly employees who plan to accept a company buyout.

“We’re going to start a referral plan using hourly and salary employees,” 292 shop chairman George Anthony said Thursday. “We want every employee in Kokomo, that’s approximately 5,000 people, to turn in a referral for people to be hired off the street.”

Delphi spokesman Lindsey Williams said the referrals will allow the company to create a pool of potential candidates “in case we find ourselves in need of hiring.”

That need will be determined by the number of local workers who accept one of the attrition programs, people who flow back to General Motors, or who come to Kokomo from another site.

“We will evaluate the staffing needs and adjust manpower based on those needs,” Williams said.

Anthony said the referral program will start between May 5 and 8 and come to an end sometime the week ending May 26.

“We want to start doing the first interviews the first of June and start hiring people off the street as soon as June 19,” he said.

With a month to go until the June 1 deadline, 472 members of Local 292 already have accepted one of three buyout packages Delphi and General Motors have offered workers to help ease the auto supplier’s financial woes.

That number is expected to continue to grow.

Nearly 1,200 of the 2,300 hourly employees here are eligible for an attrition package, according to Anthony.

“I thought it would start strong and slack off in the middle,” he said. “I expect somewhere around 1,000 will take it.

“We had 27 turn in their papers Wednesday. I think we’ll get 20 or 30 per day the next few days and then it will start ramping up as we get closer to the end of May.”

Meanwhile, the former administration office on East Firmin Street will be used for the job interview process.

“We’ll interview daily for several weeks so we can start letting people go on the attrition package,” Anthony noted. “We will also solicit other Delphi plants in the United States to see if they have anyone who would like come to Kokomo. We want to make sure they know we have needs.”

Monday, 40 Delphi employees from Anderson will begin working at Kokomo’s Delphi Electronics & Safety. They are among 130 who are not eligible to retire from the Anderson plant, where nearly 75 percent of the hourly workforce is in the jobs bank. At one point, Anthony said, all 130 were headed to Kokomo.

“There has been a glitch with that. We’ll be getting 40 coming in Monday, and we were supposed to get 40 more on May 8 and 15 and the final 10 on May 22,” the union leader said. “Now, the General Motors [Allison] transmission plant in Indianapolis wants some of them also.”

SPARK THE MOVEMENT - FLINT, MICHIGAN

From FLINTSOLIDARITY.ORG

Spark The Movement!
Join The Rally!

This event was canceled by UAW Local 651 (in Feb), however many people (SOLDIERS OF SOLIDARITY) still showed up to protest and support Delphi workers. So, even though this event was canceled, it was an overwhelming success.

Some people had traveled from Indiana, Illinois, Minnesota, and even Califorinia to show support for Delphi workers. I can only imagine how successful this rally could have been.

Thank you to all who participated!!

and now a few pics (I'd have more, but my camera froze up)

photos by Ken Mathenia, member UAW Local 651

MARCH FOR AMERICA DEMONSTRATION

CITIZENS MARCHING FOR THE AMERICAN DREAM

THE TIME HAS COME TO SEND A MESSAGE TO OUR LEGISLATORS

CAPITOL BUILDING
LANSING, MICHIGAN
SATURDAY, APRIL 29, 2006
2 PM

STOP OUTSOURCING OF AMERICAN JOBS!
SUPPORT UNIVERSIAL HEALTHCARE!
PROTECT THE WORKING CLASS!!!!
PROTECT OUR PENSIONS!

AMERICA FIRST!!!!!!!!!!!

FOR MORE INFORMATION CALL 810-742-7420 EXT. 31
WWW.CMAD.US

See all the Dead UAW lawsuits GM and Delphi get out off when they level Vandalia

Ask yourself why did GM and Delphi level the Winsconson plant. My Uncle Don Moyer died of a tumor growing around the vein that feeds blood through his liver. He worked in the Winsconson plant Power House

http://stationaryengineeringhazards.netfirms.com/

Save Our Jobs: Grimes Labor Equalization Act.

The Great Depression

"The Sequel"

Coming To Your Neighborhood Soon.

It can still be avoided with the Enactment of the Grimes Labor Equalization Act, But this is what we're up against.

The American economy is nothing more than the largest corporation in the history of the world, and it's being bled dry because the political leadership has sold out to Wall Street.

As a result the American middle class and the economy is being destroyed industry by industry as one after another goes off-shore or files for bankruptcy.

Today, the American economy has over one trillion dollars of un-funded pension funds. In other words, your pension fund may not be worth one thin dime. You put your financial future in the hands of thieves.

Welcome to the "New World Order" a creation of Wall Street for the purpose of one thing and one thing only: satiate the ravenousness incomprehensible greed of Wall Street.

The link below to a recent article in the New York Times is the most important article you'll ever read in terms of your financial future.

http://www.nytimes.com/2005/12/11/business/yourmoney/11retire.html

These American corporations filing for bankruptcy aren't going out of business, they're restructuring. Restructuring means, unloading past obligations to employees and stockholders. You are either one of the two, or both.

The end result is this: as an employee, in the not too distant future you will be forced to accept a wage in the neighborhood of half of what you presently earn. In addition, you will be required to pay your entire healthcare premium or forgo healthcare for yourself and your family.

Any future company pension plan or 401 will be entirely funded by you. Any stock you presently own will be worthless if and when your company declares bankruptcy. If you had your lifesavings invested, it's gone.

This economy will collapse completely and maybe as early as the start of the second quarter of 2006. And I'll explain how and why as you read on.

To protect yourself as much as possible: get out of the markets NOW. Not tomorrow, NOW. Get into 6 month CD's until the smoke clears.

In other words: SELL while you can.

WHY YOU ASK?

Wall Street: the empire of insatiable greed. The Wall Street money changers have their hooks in all aspects of Corporate America including the board rooms, as a consequence they have forced the exodus of American jobs to foreign labor markets to maximize the restructured American Corporations profit margins.

This has allowed for enormous bonuses and compensation packages. Billions, and I mean billions of dollars of dollars in year end bonuses for Wall Street and Corporate American CEO's. And this year is no different, this is the season on Wall Street for purchasing, Bentley's, Mercedes, BMW's, $8000 dollar suits, $1000 dollar shoes and multi-million dollar apartments as they re-distribute the wealth of America to themselves at your expense courtesy of your congressman or woman. It doesn't make any difference what party he or she belongs to, they all sold you out.

What they've done successfully is to export our American industrial base to countries like China and India to exploit slave labor. $2 a day is slave labor. At the same time allow 13 million Illegal Immigrants into the USA willing to work for next to nothing, because it benefits Corporate America.

These immigrants aren't denied healthcare, all they have to do is show up at any hospital and they'll be treated. You and I pay that bill, not Corporate America.

Above and beyond all the above; the penultimate wealthy of Wall Street, have developed exclusive (minimum investment of $5 million) hedge funds and private equity firms that have heavily invested in China and India. And it's these funds and firms that are creating shell companies in China and India under the guise of indigenous cover names.Make no mistake about this: it's "exclusive" American hedge fund money: not yours.

After the economy collapses and the smoke clears, we should put the Wall Street money changers and congress (one and all) on trial for treason. By the acts described above, they are destroying the work force, the consumer base and the tax base, collectively they are destroying our country.

Economic collapse is imminent not only because of the off-shoring and out-sourcing of American jobs, it's further accelerated when combined with Wall Street scams of mortgages: variable and interest only mortgages, rates that will only go up.

As more and more Americans lose well paying jobs, they'll be unable to meet mortgage payments: as a consequence, massive foreclosures, triggering the start of an economic collapse the likes of which the world has never seen. Within six months banks will have fire sales on foreclosed homes attempting to raise cash: meaning great buys. Cash will be king.

If you think Iraq is a debacle, (and it is) of the first magnitude, when this economy unravels our position as a world economic and military superpower will be over. We will have been emasculated as a country temporarily. But, we can and will recover: if we act now.

A collapse is now a work in progress, but you can protect yourself to some extent by suspending all unnecessary purchases, such as automobiles, homes, minimize all purchases. Only buy or charge what you can pay for in thirty days. And above all else, boycott Wall-Mart.

Wall-Mart was and is the Wall Street business model for Corporate America. Today, following the Wal-Mart model are: General Motors, Ford, Delphi, Visteon, American Airlines, Delta, Northwest, the list is growing by the weeks.

The goal: $10 an hour wages. These will be the very best jobs.

If you aren't there yet, you will be soon. Be sure to thank your congressman. He sold you out!!!

We can end this insanity with the Grimes Labor Equalization Act. The act will turn the tables on Wall Street and Corporate America and force them to pay the difference in wages between American wages and foreign wages into a pension restitution fund, this will provide you with future security, and cause Corporate America to remain on-shore. And in the months to come, they'll understand too, this act is also in their best interest.

GRIMES LABOR EQUALIZATION ACT.

They can and should be invested in foreign markets, but only to make what they sell in that country, not for export. If they pay the indigenous work force a living wage, they'll soon become consumers and we will have global economic growth.

This economy was founded on that premise, I.e., Henry Ford.

I'll need you help. I intend to take this message to the American public via national radio and force congress to take action. I can probably get it done in six months or less. But, not without your financial assistance.

Not only is it absolutely necessary that you donate, but I'll need your friends, co-workers and neighbors too. So send the link below (it's your future!) after you donate with your endorsement. After all: it's your future!

It's Your Future!

James J. Grimes

jimgrimes@wowway.com

Union safety net may be lost

GM cuts likely to swell jobs bank numbers, costs

November 23, 2005

BY MICHAEL ELLIS

FREE PRESS BUSINESS WRITER

What it is: A program under which General Motors pays hourly workers even when a plant has closed or production stops. Ford, Chrysler and Delphi also have jobs banks.

How many GM workers are in it: Between 5,000 and 6,000.

Estimated cost to GM: $700 million to $800 million a year.

Formed: Under a 1984 UAW contract. The companies agreed to the program after the UAW said it would not fight new measures to increase plant efficiency and cut costs.

The financial safety net that provides laid-off General Motors Corp. union workers with full pay and benefits, a program called the jobs bank, could be targeted for elimination just as the company seeks to cut 30,000 jobs.

GM's plans outlined Monday to stop production at 10 U.S. plants and facilities, including four in Michigan, will only increase the number of autoworkers in the jobs bank, experts who follow the industry said Tuesday.

Under the program, initially agreed to with the UAW in contract negotiations in 1984, the three Detroit automakers pay hourly workers full wages and benefits even when a plant has closed or production stops. The companies agreed to the program so the UAW wouldn't fight new measures to increase plant efficiency.

But with GM and Ford Motor Co. selling fewer cars and trucks in the United States, what was once a temporary cost to ease workers through a short downturn has become a permanent drag on earnings.

Ending the jobs bank, leaving workers without a steady paycheck, could strike yet another blow to Michigan's weakened economy, where job losses are expected to continue for a sixth year in 2006.

William Matthews, a worker at GM's stamping plant in Indianapolis, and former president of UAW Local 579 in Illinois, said the union may be willing to give up the jobs bank.

"I don't know that it's going to be a big priority for the UAW," he said. "I think they're more worried trying to hold on to what they've got left."

A source close to the automaker, who asked not to be named because the information is not publicly available, said GM pays between 5,000 and 6,000 workers in the jobs bank, the most of any company, costing the automaker an estimated $700 million to $800 million annually. The number of jobs bank workers already rose by more than 1,000 this year when GM halted production at three plants in Lansing, Baltimore and Linden, N.J.

GM would not say how many workers are in the jobs bank and how much it costs GM.

With GM's plant closing news Monday, hundreds or thousands more workers could go into the jobs bank.

"It's very expensive and it's only going to get worse when they have to idle plants," said Erich Merkle, director of forecasting with IRN Inc. in Grand Rapids. "I don't know of any company that guarantees a job except for the automakers."

The guaranteed wages and benefits protect autoworkers in the cyclical industry. But it's a cost that's unique to the U.S. auto industry, putting the companies at a disadvantage.

With GM losing $4.8 billion in North America so far this year, the automaker is trying to cut costs any way possible.

For that reason, Merkle and other experts said GM will try to eliminate or modify the jobs bank program in contract talks with the UAW in September 2007 -- if not sooner.

"We're in an environment now where the upheaval is so great ... it's ongoing negotiations," said Robert Chiaravalli, a labor lawyer and principal with Strategic Labor and Human Resources LLC in West Bloomfield. "General Motors is going to be doing continuous negotiations between now and then."

GM will be able to cut about 20,000 of the 30,000 jobs it plans to eliminate by the end of 2008 through attrition and retirement, said Brett Hoselton, who analyzes the automotive industry for shareholders with KeyBanc Capital Markets.

The average GM hourly worker is 50 and has worked at the company for 24 years. GM hourly workers are eligible to retire with pension and health care benefits after 30 years, although many continue to work.

For workers who are not eligible, Hoselton estimated that GM could offer them a buyout incentive of $50,000 to $100,000 each to retire early and keep them out of the jobs bank. If 10,000 workers accepted that, it would cost GM $500 million to $1 billion, he said.

But some workers too young to retire could reject the buyout and opt for the jobs bank.

"When the layoffs occur, it's going to be feeding the jobs bank. The jobs bank is just going to swell," Chiaravalli said.

GM Chief Executive Rick Wagoner has not shied away from confronting the UAW, as Monday's news of the plant stoppage shows.

After Wagoner threatened to take unilateral action to cut health care costs for retirees, the UAW agreed in October to shift more of the costs to workers and retirees. GM hourly workers ratified that plan earlier this month.

When asked on Monday if GM would talk with the UAW about ending the jobs bank, Wagoner said it wasn't on the agenda now, but it was a major cost for the company.

"Under circumstances like this, it is expensive, but we are making a lot of changes from health care to capacity reduction. And we have to address issues as expeditiously as we can," Wagoner said.

Delphi Corp. Chief Executive Steve Miller has been more outspoken against the program. When GM spun off Delphi as a separate company in 1999, the automotive parts supplier still had the same contract as its former parent company, including the jobs bank.

"If you try to put too many people on the boat, the boat may sink," he said, referring to the jobs bank and other costs, in an interview with the Free Press in October.

The Troy-based supplier, which declared bankruptcy Oct. 8, has at times this year had as many as 4,000 workers in the jobs bank, costing it $100 million a quarter or $400 million at an annual rate.

The jobs bank cost to GM is much higher, which is why the automaker will go after that next, industry experts said.

"It doesn't take a brain surgeon to take a step back from the contract, and say look, what are the things in this contract that are unusual and noncompetitive," Hoselton said.

EATON WORKERS STAND UP!

The rally planned comprising Eaton Workers, and the Decalb County Workers Association, whose moto boasts, "Workers Helping Workers," will take place in Auburn, Indiana, Nov. 26 at 2pm.

A little background on Eaton, a previous Dana Plant, might shed a little light on why Eaton Workers are so interested in rallying for worker rights.

Eaton, located in Auburn, Indiana, comprises an operation of 340 workers. Eaton also opened two other operations a few years ago, one in Oklahoma, and one in Concord. Eaton workers in Auburn contacted the International when the additional facilities were opened, suggesting organizing efforts. They weren't interested.

The Eaton corporation is systematically attacking and closing its union shops throughout the USA.

Eaton attempted to force workers at the Auburn facility into a concessionary agreement, which would establish a two tier wage system for all future hires, and no ability of workers stuck on the lower tier to ever achieve the same rate of pay as their coworkers. Starting wage for two tier was to be $13.80 per hour. Though Eaton rank and file were threatened with a plant closing if the agreement did not pass, Eaton's rank and file voted it down by a 54% margin, claiming "A Union Means 'Equal Work for Equal Pay'"!! (GOOD FOR THEM!)

Eaton has now laid off 12 more workers, promising 150 layoffs by Christmas. Though Eaton workers could be discouraged, and could let apathy set in, the rank and file instead report to New Directions, "All is not lost, the rank and file may save us all!"

INSPIRING! While other corporations rank and file are voting these kinds of suppressive, union busting contracts in, Eaton workers, when faced with the same threats and intimidations, stood up for themselves by voting no, even though they have a smaller workforce than most of us enjoy, and because of that more to lose. We could all learn a thing or two from Eaton's rank and file.

Any road warriors out there!! I know there are!

Let's all show up in Auburn, Indiana, help support the cause of Eaton Workers, and help the Decalb County Workers Association spread the word to workers, communities and public officials that we, the rank and file, are strong together!

We all win, when one wins. We all fail when one fails. As Eaton's rank and file has already shown, "Together, we have the power to demand the respect we deserve."

SUPPORT WORKERS ACROSS THE COUNTRY AT AUBURN, INDIANA WORKERS RALLY!!!

EATON WORKERS AND THE DECALB COUNTY WORKERS ASSOCIATION INVITE EVERYONE TO ATTEND!

Show your support for working people!!!

When: Saturday November 26th
Time: 2pm
Where: Meteor bar and grill, Auburn, Indiana.

For those of you that may not know where Auburn is, it is approximately 15 miles north of Fort Wayne, Indiana, off state Rd. 27, or Interstate 69.

All workers and friends are encouraged to attend to show solidarity in the community.

Now more than ever we need to band together against unfair business practices to let everyone know we are the majority and that workers are the reason businesses succeed.

There will be burgers and dogs on the grill and beverages available at the Meteor Bar and Grill.

Take a stand for working people!! The focus of the rally is not only Eaton Workers, but also the current struggle of union and nonunion working class across the country!

The Dekalb County Workers Association

Ford to cut 4,000 white collar jobs in North America by early next year

Move is part of painful restructuring to be announced in January

By By Bryce Hoffman / The Detroit News

Ford Motor Co. will cut another 4,000 white-collar jobs in North American by early next year as part of a painful restructuring that will be announced in January.

Mark Fields, president of Ford's Americas division, outlined the planned job cuts in an e-mail to employees Friday and at the same time gave a blunt assessment of Ford's operating weaknesses.

"Our leadership team has put into motion the difficult but necessary decision to further reduce our salaried-related personnel costs in North America by an average of about 10 percent," Fields wrote. "This will affect every function, including our corporate staffs, and will involve the reduction of salaried, agency and purchased services costs equivalent to about 4,000 positions."

Ford, which started the year with about 32,000 salaried workers in the United States, said the "involuntary" terminations will begin soon and be completed by the end of March.

"Separating members of the Ford team is not easy, nor is it something we take lightly," Fields said.

The automaker has already eliminated nearly 3,000 white-collar jobs since the spring through layoffs and voluntary departures.

Fields was tapped by Ford Chairman and CEO Bill Ford Jr. in October to revive the automaker's crucial North American operations. Ford has suffered an alarming drop in U.S. sales and market share, mounting automotive losses and persistent quality problems. The company posted a third-quarter loss of $284 million. In North America, it lost $1.2 billion before taxes.

Ford's global automotive operations have lost almost $1.7 billion through the first nine months of the year, compared to profits of more than $1.1 billion through the third quarter of 2004.

While U.S. light vehicle sales have increased 1.2 percent this year through October, Ford's sales have dropped 3.4 percent.

Ford, like crosstown rival General Motors Corp, is saddled with high labor costs, excess factory capacity and huge pension and health care obligations. Ford has also been forced to match GM's generous discounts this year, which have eroded the automaker's profits.

Rising gas prices have also sharply curtailed consumer demand for Ford's sport utility vehicle lineup, which helped the automaker become one of the industry's most profitable companies during the 1990s.

Fields, who previously headed Ford-controlled Mazda Motor Corp. and its Premier Automotive Group collection of European luxury brands, is examining nearly every major aspect of the automaker's North American operations.

In the memo to employees Friday, Fields said his "Way Forward" plan will focus on three key areas: strengthening Ford's product lineup, clarifying the company's brands "for stronger emotional appeal" and "achieving improved quality, costs, growth and profitability - all at the same time."

"The reality is that the best of the competition is more competitive than we are on quality and costs, more efficient than us in their operations, and they're achieving market share growth and sizable profitability all at the same time," Fields said. "We can and must do the same."

Fields called on those who remain to do more to improve quality and compete against companies like Toyota Motor Corp. and Honda Motor Co.

In addition to the job cuts, Ford is expected to close additional North American plants to align car and truck production with demand. It is also negotiating with the United Auto Workers union to lower health care costs.

Ford has been in a constant mode of restructuring and downsizing for several years now.

In January 2002, the company announced plans to cut 21,000 jobs, shutter some assembly and parts plants, and eliminate unprofitable car and truck models to stem losses that totaled $6 billion in 2001 and 2002.

The automaker became profitable again and earned a combined $4 billion in 2003 and 2004. But severe competition that has eroded Ford's pricing power, rising gas prices and steel costs, and uncompetitive operating costs have undermined the company for most of 2005.

As part of the turnaround, Ford this year has suspended matching 401(k) contributions, frozen management bonuses, and combined the back office and regional sales operations of its Lincoln, Mercury and Ford divisions.

Ford's share of the U.S. market has dropped to 17.6 percent this year from 18.4 percent a year ago. A decade ago, Ford controlled more than 26 percent of U.S. light vehicles sales. During that same period, both Toyota and Honda have seen their market share rise dramatically.