By DEREK R. SMITH, Kokomo Tribune business writer
Parked vehicles overflowed into the grass Wednesday afternoon at United Auto Workers Local 292, as hundreds of hourly Delphi Corp. workers came to hear specifics about retirement buyout packages.
“Some people are discouraged because they’re not being given much of an option,” financial secretary/treasurer Chris McTaggart said outside the West Alto Road union hall. “The option is take one of the packages or stay here and suffer the consequences.”
Local 292 hosted three “Special Attrition Program” meetings Wednesday.
McTaggart said the timeline for employees’ decisions about whether to accept a package is plant-specific. He said the plan was being rolled out locally on Wednesday, meaning the clock has started ticking for employees to make their decisions.
“We have some people who are signing up now,” he said.
Shop chairman George Anthony has said about 1,100 of Delphi’s 2,300 Kokomo hourly workers are eligible for one of the packages. He expects more than half of those to accept, meaning more than one-fourth of the local hourly work force would retire.
Employees have 45 days to decide, then seven days to reconsider. After that, the decision is irrevocable.
Local union officials are emphasizing that workers “check the box” and be processed as a General Motors Corp. retiree. Pension payments for those who check the box are Delphi’s responsibility, but GM will provide health care and life insurance.
Fran Reed retired in January after 27 years at Delphi, but she is eligible for a $35,000 buyout because it’s retroactive.
“I think about anybody that can take it is probably going to,” she said. “There’s probably a few who aren’t going to be satisfied with it, but that’s just like everything. You can’t make everybody happy.”
The Kokomo woman said the meetings included representatives from UAW’s Detroit headquarters and Delphi management. She said workers attending the meeting she attended gave their full attention.
“Nobody’s angry,” she said. “They’re pretty much just listening to what is being said so they know everything about what they are being asked to sign — and whether or not to sign it.”
Roxanne Hyden, a 24-year Delphi veteran, said she qualifies for a package under the “Mutually Satisfactory Retirement” offer for people who are age 50 or older with 10 or more years of credited service.
“I want to know what my options are in flowing back [to GM] because I do have five years to go,” she said.
Hyden said workers in her category would get $100 gross per year of service — $2,400 a month in her case. She said she needed to learn additional details, like how long the payments would last.
“I think the real iffy ones are people in my situation,” she said. “I just wish there was something for the young people.”
Kokomo resident Debbie Mellon said she plans to take a $35,000 buyout. She thinks a high percentage of other eligible workers will join her. She said local workers were relieved Wednesday to gain a fuller understanding of their options.
Delphi, the nation’s largest auto supplier, has 185,000 workers in six divisions worldwide.
Kokomo is world divisional headquarters of Delphi Electronics & Safety and home to about 5,200 of the division’s 29,900 workers.
Delphi filed for Chapter 11 reorganization bankruptcy Oct. 8, citing globally uncompetitive costs. The Troy, Mich.-based supplier has unveiled a broad transformation plan it says will make it competitive.
Delphi’s plan involves focusing on core technologies and shedding unprofitable product lines. The supplier plans to continue its operations in Kokomo and emerge from Chapter 11 in 2007.
The UAW has blasted Delphi’s latest wage and benefits offer, which would gradually reduce the pay of hourly workers from $27 to $16.50 an hour.
GM spun off Delphi in 1999, and has been in negotiations with Delphi and the UAW.
Delphi filed in court March 31 asking bankruptcy Judge Robert Drain to throw out its union contracts. Negotiations are expected to continue ahead of a hearing on that scheduled for May 9. Drain’s decision isn’t expected until June.
If the judge terminates the contracts and Delphi imposes its latest wage offer, the UAW has said it will strike.
Analysts are divided on the possibility of a strike, saying it would be catastrophic to each party and significantly affect the entire industry.