Bankruptcy hearings proceed at slow pace

Delphi hopes to wrap up its case in New York today.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
NEW YORK -- A local union official from Warren is to testify at the Delphi Corp. bankruptcy hearings, but no one can be sure of when that will be.
The pace of the hearings in New York so far this week has been like the flow of traffic in midtown Manhattan during rush hour -- slow.
Judge Robert Drain of U.S. Bankruptcy Court is listening to testimony to determine whether the auto parts supplier should be allowed out of its union contracts and health-care obligations to retirees.
Before the hearings started Tuesday, officials from the International Union of Electrical Workers thought Don Arbogast, shop chairman of Local 717 in Warren, would be on the stand this coming Monday.
The judge, however, said he wanted a break in the hearings to give the company and unions time to try to negotiate a settlement. After today's session, the hearings are to resume May 24 and 26.
10 witnesses left
Only three of Delphi's 13 witnesses have taken the stand after the first two days of hearings. Still on the stand is Michael Wachter, an economist from the University of Pennsylvania, who completed a comparative wage study for Delphi.
Tom Kennedy, an IUE lawyer, said there is a 50-50 chance that Delphi will finish with all of its witnesses today, clearing the way for union witnesses to take the stand.
Jack Butler, a Delphi lawyer, said he thinks Delphi can complete its case today, but added that he didn't think the first two days would go as slowly as they did.
Butler has asked few questions so far because the Delphi witnesses have made written statements to the court. Union lawyers, however, have had hours of questions for each witness.
Lawyers said they expect the pace of the hearings to pick up once Delphi's case is completed because Delphi lawyers aren't expected to be as detailed in their questioning of union witnesses.
21 union witnesses
The unions and creditors have 21 witnesses scheduled to testify.
United Auto Workers, the largest of Delphi's unions, and the creditors committee are scheduled to go first, followed by the IUE, which represents about 3,800 Delphi workers in the Mahoning Valley.
Among those scheduled to testify are Arbogast and Henry Reichard, the chief bargainer for the IUE.
In his opening statement, Butler launched a pre-emptive strike against the upcoming testimony of union officials such as Arbogast.
Butler said these union officials will testify about the pain that wage and benefit cuts will have on workers and communities. Butler said Delphi has no alternative, however, but to make those moves because the company's survival is at stake.
So far, both Butler and Kennedy have said they think the hearings are going well for their sides.
Kevin Butler, Delphi's vice president of human resources, has testified that Delphi made its contract offers as starting points for negotiations and has been waiting for the unions to respond.
Kennedy has been trying to show that Delphi has not bargained in good faith with the IUE because its negotiations primarily have been with the UAW and that it is taking a "one-size-fits-all" stance toward the other unions.
He also questioned whether Delphi has been serious about negotiations. First, Delphi took a November contract offer off the table and then made an offer with higher wages in March that was contingent on General Motors Corp.'s subsidizing the wages, which GM hasn't agreed to do, Kennedy added.