Delphi hearings extended by a day

Negotiations are expected to resume when this week's hearings are completed.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
Court hearings on whether to cancel Delphi Corp.'s labor contracts have been extended to allow for more testimony.
Lawyers for the auto parts supplier and its unions decided two days of testimony -- Tuesday and Wednesday -- weren't enough, so Friday has been added as a hearing day.
Three days may not even be enough because of the complexity of the issues, said Lauren Asplen, a spokeswoman for the International Union of Electrical Workers.
The hearings before Judge Robert Drain of U.S. Bankruptcy Court in New York City are over Delphi's motion to cancel its labor contracts and health-care obligations for retirees.
Delphi, which has been operating under bankruptcy protection since October, says it must cut its labor costs to survive. It hasn't been successful through negotiations, so it wants court approval to void its contracts so it can impose its own terms.
Leaders of the IUE and United Auto Workers have said they will strike if the contracts are canceled. Both unions have passed strike authorization votes.
No negotiations have been held recently, Asplen said.
"All eyes are focused on this hearing," she said.
Testimony
Asplen and Lindsey Williams, a Delphi spokesman, said they didn't know who will be called to testify, but local union leaders have given depositions to Delphi lawyers. Among those giving depositions recently was Don Arbogast, shop chairman for IUE Local 717, which represents about 3,800 Delphi workers in the Mahoning Valley.
Delphi has argued in court filings that bankruptcy law provides the company the authority to reject the contracts with 10 days' notice, while the unions say that would give Delphi too much bargaining power.
The judge, however, isn't expected to rule at the hearings or any time soon.
"Really, it's anybody's call as to how quickly he will respond," Asplen said.
The judge could rule for or against Delphi's motions, or he could simply order the two parties back to the bargaining table.
Asplen and Williams said they expect the two sides to continue bargaining without court instruction.
"Negotiations probably will intensify," Asplen said.
Speculation
Some industry insiders have speculated that the two sides have until June to wrap up talks because that's when Richard Shoemaker, a UAW vice president for labor deals with General Motors, is retiring.
GM is involved in the negotiations because it has financial obligations for Delphi workers as the former parent company of Delphi.
Under Delphi's latest proposal, hourly wages for production workers would be cut from $27 to $16.50 by 2007. New hires would be paid $12 an hour.
That proposal depends, however, on GM supplementing workers' wages, which it hasn't agreed to do.
Also, Delphi, GM and the UAW have agreed to a buyout offer for about 17,000 hourly Delphi workers. Workers would receive a lump-sum payment of $35,000 to retire with full benefits. The IUE hasn't reached such a deal, however.
shilling@vindy.com