Union preps for a strike at Delphi in Kokomo

George Anthony, shop chairman of Kokomo’s United Auto Workers Local 292, wants local Delphi Corp. workers to be prepared for the possibility of a strike.

Anthony said Local 292 will host a strike training session by union experts Jan. 12.

“Hopefully, we won’t need that, but I think there’s better than a 50/50 possibility we will,” he said.

Anthony said the training is scheduled to last about six hours. He said it is designed not only with workers in mind, but with how a union hall and community agencies can best assist a striking work force.

He said he expects other Delphi locals to participate in training in January and February, but he wants Local 292 to be one of the first to receive it so there is ample time to address questions.

Based in Troy, Mich., Delphi is the nation’s largest auto supplier with about 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.

Anthony said 40 Delphi workers in Anderson are scheduled to begin work in Kokomo on Jan. 3.

He said he would like to see a total of 120 to 200 new employees in Kokomo by the end of February, adding Anderson has about 600 workers in the jobs bank.

During his September visit to Kokomo, Delphi CEO Steve Miller pointed to the jobs bank — through which employees are paid while not working — as a part of Delphi’s costs that make the company less competitive.

Background

Delphi filed for Chapter 11 reorganization bankruptcy Oct. 8, citing globally uncompetitive costs. Subsequently, Delphi angered the UAW with wage and benefits offers that would dramatically slash hourly wages.

Another point of contention has been Delphi’s Key Employee Compensation Programs, which critics say would unfairly reward executives while blue collar workers are asked to suffer cuts.

Delphi contends its KECP is necessary to retain executives with critical business knowledge and that if executives leave, they are not easily replaced.

Kokomo workers posted informational pickets against Delphi’s KECP with signs critical of Miller.

Anthony said more than 2,300 people attended a Dec. 10 labor rally at Kokomo’s Johanning Civic Center, aimed at building union solidarity and promoting awareness of the issues involved in the Delphi situation.

Negotiations continue

Delphi announced this week that in light of General Motors Corp.’s “recent engagement” and discussions with the United Auto Workers union, it is withdrawing its Nov. 15 wage and benefits proposal, “which had been based solely on Delphi’s financial constraints.”

In addition, Delphi announced it will further delay filing to throw out its collective bargaining agreements and modify its health care costs until at least Feb. 17.

However, Anthony reiterated he thinks a Delphi strike is a likely scenario. He said although Delphi withdrew its offer, it has not made a new offer and still is scheduled to file its collective bargaining and health care motions in February.

“I think the whole key here is General Motors,” he said.

Delphi spun off of GM in 1999.

Although Delphi has diversified its customer base, GM remains its largest customer and Delphi has been hurt by GM’s decline.

It is uncertain how much financial liability GM has to Delphi, with observers giving a range of zero to $12 billion.

Anthony said GM would benefit from playing a larger role at the negotiating table.

Delphi said Monday it is committed to reaching a “consensual agreement” on a comprehensive restructuring with its unions and GM.

Although Delphi withdrew its Nov. 15 offer — one that was blasted by UAW leaders as ridiculous and insulting — Delphi said it may return to the offer, depending on the outcome of discussions.