Monday, October 27, 2003
THE VINDICATOR
WARREN -- Delphi Packard Electric Systems is considering cutting back its hourly work force with layoffs because too few workers accepted an early retirement offer.
Doug Hoy, a company spokesman, said the Warren-based division of Delphi Corp. has too many workers for its order volume, which has been reduced.
He said layoffs are only one of the options being considered, but he declined to discuss other options.
Hoy also didn't want to comment on the number of layoffs being considered.
Packard, which makes electrical wiring harnesses and components for vehicles, offered an early retirement window that ended Oct. 1. Workers who retired then received a $15,000 payment.
Took early retirement
About 300 workers retired, but it wasn't enough of a reduction in the hourly work force, which stands at 4,200, Hoy said.
Because of retirements, Packard's work force has been cut from 8,600 since 1995.
Packard at times lays off workers for short periods when production volume drops temporarily, but these layoffs would be for an indefinite period, meaning there would be no plans to recall them, he said.
Troy, Mich.-based Delphi announced last week that it plans to cut 3,200 hourly jobs in the United States in addition to 1,800 that had been cut recently.
It said its recently approved labor contract with the United Auto Workers gives it flexibility to "address underperforming operations" and "appropriately size" its 187,000-person global work force.
The local workers, however, are represented by the International Union of Electrical Workers, which is negotiating a new labor contract with Delphi. The current contract expires Nov. 14.
Officials with IUE Local 717, which represents the local hourly workers, could not be reached to comment.
Most of the Packard workers have their jobs and income protected by the contract and cannot be placed on indefinite layoff. Those hired after May 14, 1997, do not have the same protections, however, and can be laid off indefinitely.