Ecombd

Friday, February 02, 2007

Problem Between UAW and Delphi

I often feel that American auto makers are unluckier compared to Asian auto makers when it comes to dealing with workers.

Grand Haven Tribune wrote:

The United Auto Workers union struck a defiant tone Thursday in its dealings with Delphi Corp. and private investors who want to provide the bankrupt auto parts supplier with a critical infusion of cash.

Complaining that Delphi and the investors have dragged their feet on negotiating wages, benefits and other issues with the UAW, union President Ron Gettelfinger said the UAW would not negotiate against deadlines in which it had no say.

A Delphi spokesman said Thursday night that the unions representing hourly workers have been included in every aspect of the negotiations.

Three private equity investors — Appaloosa Management LP, Cerberus Capital Management LP and Harbinger Capital Partners Master Fund I — along with Merrill Lynch & Co. and UBS Securities LLC have agreed to invest $1.4 billion to $3.4 billion in a restructured Delphi.

The investors and Delphi each had the right to terminate the agreement Wednesday if no deal was reached with Delphi's unions, which include the UAW, and General Motors Corp., which once owned Delphi. The deal was contingent upon Delphi settling on wages, benefits and other issues with its unions.

Let us hope that the two sides can find a middle ground and solve the problem.

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