Council split on reaction to Delphi

The IUE probably won't stand for the halving of wages, a councilman said.
By PETER H. MILLIKEN
VINDICATOR TRUMBULL STAFF
WARREN -- One city council member said the city should prepare for the worst possible outcome of Delphi Corp.'s bankruptcy, but two of his colleagues said such discussion is premature.
"You plan for the worst, and anything above that: Praise the Lord. But the last thing I feel we need to be doing as a city is planning on hiring people," said Gary Fonce, D-at large.
Fonce was reacting to Mayor Michael O'Brien's announcements that the administration is interviewing to replace one firefighter who resigned and is considering hiring police officers.
O'Brien noted, however, that hiring police officers is time-consuming because of the need to do thorough interviewing, testing and background checks on applicants.
"I think all this discussion is premature," replied Councilwoman Susan Hartman, D-7th. "We are waiting. We're not hiring tomorrow," she said. No funding for new hires can occur without council's consent, she added.
Adverse affect
Councilman James "Doc" Pugh, D-6th, also used the word premature to characterize council's discussion. Pugh said he didn't think the International Union of Electrical Workers would agree to cutting Delphi workers' wages in half in midcontract. Any wage cut would adversely affect collections of the city income tax, which is 2 percent of wages.
The council members made their remarks during a Tuesday meeting of council's finance committee, whose agenda included a discussion of the impact of Delphi's bankruptcy on the city and how the city could help preserve Delphi Packard Electric facilities in the Warren area.
O'Brien said the administration is keeping "a watchful eye" on the Delphi bankruptcy "until we get a clearer picture."
What Delphi wants
Delphi has said it will ask a bankruptcy judge to void its union contracts if the IUE and the United Auto Workers don't agree to new terms by Dec. 17. The company is seeking to cut its IUE work force by 65 percent and to reduce remaining employees' wages by about 60 percent and reduce benefits.
"As a city, we need to say 'We're willing to work with you' very loud and very clear," Councilman Felipe Romain Jr., D-at large, said of Delphi. "I want to make it absolutely clear that the City of Warren will do whatever it can to retain that facility and the jobs in this area," he added.
Councilman Vincent S. Flask, D-5th, said he, too, wants the city to do everything it reasonably can to help Delphi. However, he added: "I personally don't feel that we need to give a company anything that is going to only provide the low-paying jobs in this area. If that's done, all you are going to see across this area is more blight and more crime. We have enough of that."
Bill reductions
O'Brien has said he's willing to give Delphi Packard Electric a price break on its water and sewer bills to help keep its plants here.
"You have to walk this path very, very carefully,'' said Tom Angelo, the city's water pollution control director. Angelo added that, if council arbitrarily cuts utility rates for Delphi, it must be prepared for other companies to ask for the same relief.