IUE officials meet to discuss buyout

Delphi's demand for lower wages and benefits are not part of the current talks.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
Union officials are meeting today to review a buyout offer made by Delphi Corp. on Monday.
The offer was made to the International Union of Electrical Workers, which represents about 3,800 hourly Delphi workers in the Mahoning Valley and about 4,500 elsewhere.
No details were available, though Delphi and the United Auto Workers already have agreed on a deal that allows workers to leave with a $35,000 payment. The financially troubled auto parts supplier wants to cut its hourly work force from 34,000 to 12,000 while avoiding a strike by the unions.
A bankruptcy court judge in New York agreed to Delphi's request to postpone hearings Monday to give the IUE and company officials time to focus on the buyout offer.
The IUE's national negotiating committee -- which includes Don Arbogast, shop chairman of IUE Local 717 in Warren -- is meeting at a Michigan hotel today to discuss Delphi's offer, said Lauren Asplen, an IUE spokeswoman.
The court hearing on Delphi's request to cancel its union contracts and amend retiree benefits is scheduled to resume Friday. The hearing could be pushed back again, however, depending on the outcome of negotiations this week, Asplen said.
The buyout offer is Delphi's second proposal. The union made a counteroffer during the last break in court hearings.
Asplen said Delphi's revised offer indicates that the two sides are making progress.
Proposed terms
The buyout offer is just one part of a new labor deal, however.
Asplen said the IUE and Delphi are not talking about other major issues -- reduced wages and benefits.
Delphi is standing by its March offer to cut wages for production workers at its top-paying plants -- including those in the Mahoning Valley -- from $27 an hour to $16.50 if it receives financial aid from General Motors Corp. Without a GM subsidy, Delphi wants to pay workers $12.50 an hour.
IUE and UAW lawyers have said in court that this offer isn't firm enough to negotiate over.
Lindsey Williams, a Delphi spokesman, said the company is continuing to work on comprehensive agreements with all seven of its unions. He said progress is being made but declined to be specific.
Judge Robert Drain of federal bankruptcy court in New York has been encouraging the company and its unions to reach contract agreements outside of court.
Bankruptcy law gives him the authority to cancel union contracts so Delphi can impose its own terms.
Delphi completed its case Friday, and the unions are set to begin presenting witnesses.
shilling@vindy.com