AFSCME 3357-HOF'S BLOG

Delphi Settlement Pending?

It looks like the UAW may be getting ready to clear the deck in preparation of fall's bargaining season with the automakers. According to the Detroit News, there are only about 4,000 UAW workers left at Delphi. The reported deal would include cash-payouts for these workers in exchange for accepting lower hourly wages in the range of $14-18 per hour. This hourly range is higher than the figures that Delphi chief Steve (pomatus of bankruptcy) Miller tried to mandate at the outset of the bankruptcy.

More than 12,000 Delphi workers took a buyout last year; and most were replaced with new workers hired in at a "second tier" $14.00/hr. wage rate. General Motors has disclosed that it expects to absorb $7 billion in costs related to the Delphi plan. General Motors has taken an accounting charge for this cost.

If the deal goes through, it looks like all the parties involved can look back and said they did the best they could. The UAW fought a rear-guard action, preserving wages for its workers for the better part of 2 years, giving just about everybody a chunk of cash to at least partially make up for a diminished stream of wages. General Motors took a big hit but avoided a disasterous shutdown that would likely have meant the end of the company. Delphi itself will have a wage structure that makes it more competitive on the global scene.