DETROIT -- General Motors has agreed to assume ownership of five Delphi Corp. plants in the United States and operate the UAW-manned factories as a wholly owned subsidiary, according to union highlights of the tentative new contract between GM and the UAW.
The plants are Delphi Saginaw Steering in Saginaw, Mich.; Delphi Thermal Systems in Lockport, N.Y.; Delphi Powertrain in Rochester, N.Y.; Delphi Powertrain Systems in Grand Rapids, Mich.; and Delphi Electronics and Safety in Kokomo, Ind. As of last September, Delphi has nine U.S. factories and locations, down from 29 in 2005.
The GM subsidiary will employ all UAW-represented workers at the plants under the current Delphi labor agreement there, according to the highlight book that the UAW intends to share with the GM rank and file this week as the union pushes for ratification of the contract concessions.
Those concessions were regarded as necessary by GM and the U.S. Treasury Department for the automaker to restructure its costs and continue to receive federal loans that now total $19.4 billion.
Union leaders from GM locals today unanimously endorsed the tentative pact for ratification, the UAW said in a statement.