Unions at Delphi file objections

The UAW said GM hasn't agreed to supplement workers' wages.
DETROIT (AP) -- The United Auto Workers, International Union of Electrical Workers and other unions opposed Delphi Corp.'s attempt to cancel its labor contracts in court filings Friday. They said the auto parts supplier has failed to prove it needs to slash workers' wages as part of its Chapter 11 restructuring.
"This is a case in which the debtors have opted to place litigation before bargaining and to place confrontation before consultation," said the United Steelworkers, which represents about 1,000 of Delphi's 33,000 U.S. hourly workers.
Unions aren't the only parties opposed to Delphi's motion. Appaloosa Management LP, a New Jersey-based hedge fund that owns 9.3 percent of Delphi's stock, said in a filing that Delphi hasn't proved that canceling its contracts would be better than waiting until they expire and renegotiating them.
Appaloosa also is concerned Delphi's motion will be considered before a committee representing Delphi's 300,000 shareholders can be formed to review it.
Background
Delphi, which filed for bankruptcy protection in October, asked a federal judge to void its labor contracts March 31 after it failed to reach an agreement to lower wages with its unions and General Motors Corp., its former parent and largest customer. Under its latest proposal, Delphi wanted to lower wages from $27 an hour to $16.50 an hour by 2007.
U.S. Bankruptcy Judge Robert Drain is scheduled to consider Delphi's request May 9. He ordered opponents of the plan to file their objections by Friday and gave Delphi until May 1 to respond.
The UAW, which represents 24,000 Delphi hourly workers, said Delphi's motion is premature because it depends on GM to supplement workers' wages, something GM hasn't agreed to do. A financial adviser to the UAW from New York-based Lazard Freres & amp; Co. said Delphi also failed to provide relevant financial information until a few days before its motion, if at all, violating its bargaining agreement with the UAW.
Union complaints
The International Union of Electrical Workers-Communications Workers of America, which represents 8,500 Delphi hourly workers, including those in the Mahoning Valley, said Delphi presented "one size fits all" proposals that ignore differences in wages at its factories.
The International Union of Operating Engineers, which represents 20 powerhouse operators at Delphi plants, said Delphi virtually ignored its members while it focused on negotiating buyouts for UAW members.
Delphi spokesman Lindsey Williams said the company has been in contact with all of its unions but did more intensive bargaining with some than with others. He said it's standard in the auto industry to bargain with one union and ask smaller unions to accept the master agreement.
A major concern
Williams also said the company is continuing to negotiate with GM and its unions to reach a wage deal so it can avoid canceling its contracts. If Delphi voids its agreements, unions have threatened a strike that could devastate GM.
Last month, Delphi, GM and the UAW agreed to a buyout offer for approximately 17,000 Delphi hourly workers. Under that agreement, workers will be eligible for a lump sum payment of $35,000 to retire. Also, up to 5,000 Delphi workers will be eligible to return to GM.
The UAW said that agreement showed the three sides can work together.
"Delphi's petulant insistence on rushing ahead to obtain a ruling now is improper as a bargaining strategy and needlessly risks further confrontation," the UAW said in its filing.
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