Wednesday, March 15, 2006

UAW shrugs off deadline - 03/15/06 - The Detroit News

Gettlefinger: March 30 is "Mr. Miller's Deadline"
2 Weeks to Delphi Crunch Time


When I last reported on the Delphi mess, Delphi CEO Steve (the Pompatus of Bankruptcy) Miller had imposed a deadline of March 30 for the GM/UAW/Delphi negotiations to bear fruit. Mr. Miller all but said that if a deal isn't struck by March 30, Delphi will ask the bankruptcy court to void the UAW collective bargaining agreement. The parties have been negotiating since then and unconfirmed reports suggested that they were close to a deal.

That's not necessarily true according to UAW President Ron Gettlefinger. He insists that there is no deal, and as to the March 30 deadline? "That's Mr. Miller's deadline," said Gettlefinger.

Much has been said about how GM is in a difficult position. If no deal is made, and Delphi voids the contract, the union members have both the right and the incentive to strike. A strike could deliver a killing blow to General Motors within just a few months. General Motors can't afford to make big payments to bail out Delphi, but it can't afford not to.

Less has been said about the difficult position of Ron Gettlefinger. Make no mistake about it, Ron Gettlefinger is walking a tightrope too. UAW-GM workers would natually want a Delphi deal, even if that means the Delphi workers make a lot less money and have a lot less security. On the other hand UAW Delphi workers have every reason to stand firm. If Delphi goes under, GM owes them significant compensation. If Delphi continues but with 50% wages, then they might be able to do as well working somewhere else. In short, Gettlefinger has two constituancies with different objectives and motivations, and he owes fiduciary duties to both of them.


UAW shrugs off deadline - 03/15/06 - The Detroit News

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