DETROIT -- The UAW said Friday, Oct. 21, that Delphi Corp. displayed "a total lack of concern" for Delphi workers and their families with its initial proposal outlining wage and benefit reductions for hourly workers.
"Delphi's proposal is designed to hasten the dismantling of America's middle class by importing Third World wages to the United States," said UAW President Ron Gettelfinger and Vice President Richard Shoemaker in a statement. UAW spokesman Paul Krell declined to discuss specifics. The UAW represents about 25,000 Delphi workers in the United States.
U.S. Bankruptcy Court Judge Robert Drain required Delphi, of Troy, Mich., to make contract proposals to its unions by Friday. The court in New York set a deadline of Dec. 16 for the company and unions to negotiate new agreements or Delphi may ask the court to terminate the contracts and impose new terms.
Gettelfinger said last week that it was presumptuous to believe that the UAW wouldn't strike if its members were asked to sacrifice too much.
Before Delphi put its U.S. operations into Chapter 11 bankruptcy protection on Oct. 8, the company had asked the UAW to cut wages from an average of about $25 an hour to about $10 an hour. Delphi CEO Steve Miller said the company sought Chapter 11 protection to reduce its uncompetitive labor legacy costs and protect its vendors to prevent parts interruptions.
Delphi, with worldwide original-equipment auto parts sales of about $24.10 billion in 2004, was spun off from General Motors in 1999.
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