Delphi reaches tentative contracts with IUE, others

The deal includes retirement options and ‘buy down’
payments.

STAFF/WIRE REPORTS

DETROIT — Delphi Corp. said Monday it tentatively agreed to contracts with four more unions, including one that recently warned a strike was possible if talks stalled.

With the agreements, the auto parts maker continues to make progress toward its emergence from bankruptcy protection.

The auto parts supplier reached a tentative deal on a four-year contract Sunday night with the International Union of Electrical Workers, which had threatened to strike in October.

Neither side released details but the union, which represents Delphi workers in the Mahoning Valley, said the proposal includes retirement options and “buy down” payments.

The United Auto Workers, Delphi’s largest union, agreed to a payment of $105,000 over three years in exchange for cutting hourly wages for production workers from $27 to between $14 and $18.50.

The UAW contract also includes buyouts of between $70,000 and $140,000 and a retirement incentive of $35,000.

Temporary workers

The IUE said its deal also includes “advancement prospects” for temporary workers.

Temporary workers at Delphi Packard Electric in Warren last week said they were hoping the contract would have provisions to make them permanent workers with a pay raise. They make $10 an hour without benefits.

Packard has nearly 700 union workers in the area and hundreds of temporary workers.

The IUE, which has about 2,000 members working at Delphi, said it will hold informational meetings with members and conduct a mail-in vote that should be completed by mid-August.

Jim Clark, IUE president, said the agreement provides meaningful options for workers.

“Our local leaders who make up the national bargaining committee made the best out of what was a deplorable situation,” he said.

John Sheehan, Delphi’s chief restructuring officer, said the agreements demonstrate the company’s commitment to emerging from bankruptcy protection.

Other unions

Delphi remains in talks with one more union, the United Steelworkers, about a deal.

In Ohio, the USW represents workers at two plants — one in Dayton and one in nearby Vandalia, totaling 860 workers.

Along with the IUE, Delphi reached pacts with the International Association of Machinists, the International Brotherhood of Electrical Workers and the International Union of Operating Engineers.

The contracts must be approved by the bankruptcy court.

The other three unions and the United Steelworkers represent about 1,000 Delphi employees.

Delphi has said it needs to pay lower wages and get other concessions from its unions to compete against suppliers with cheaper labor costs.