By DEREK R. SMITH, Kokomo Tribune business writer
Tears fell as Kokomo employee Susie Rhoades discussed the situation.
“I don’t mean to be emotional about it, but all of us are. Our livelihoods are on the line,” she said. “At 57, who is going to hire me? There’s not enough time left for me to start over.”
Rhoades was among those who stood at the parking lot entrances of Kokomo’s Delphi Corp. operations Tuesday as an informational picket against Delphi’s Key Employee Compensation Programs.
“We just want to publicize our plight,” UAW Local 292 shop chairman George Anthony said Monday. “The same people who took this company into the ground are the ones who want to reap the benefits.”
Anthony said the picketing was intended to coincide with a Delphi hearing on the KECP in federal bankruptcy court. Although the hearing has been postponed, the UAW decided to follow through with pickets at all U.S. Delphi facilities, he said.
Many passing vehicles honked Tuesday at the small groups of bundled-up pickets, who cheered in response.
Delphi spokesman Lindsey Williams said Monday that Delphi understood the picketing was to be informational and would not affect Delphi’s operations.
Business case
Delphi’s executive compensation plan would cover 595 employees at an estimated cost of $574 million, excluding severance payments, according to a summary by Local 292.
Delphi contends its executives must be compensated at market price for their critical business knowledge. If not, the executives will leave the company and cannot be easily replaced.
Local workers argue the executive compensation would be unfair to Delphi’s unionized hourly workforce.
Lana Puterbaugh said she hoped the picketing catches the attention of both Delphi management and the general public.
“The middle class and the American way of life are under attack,” she said.
Delphi production worker Phil Campbell said politicians should realize “we’re taking notes of who supports us.”
John McAninch said outsourcing should be a concern for all Americans, adding Delphi’s Kokomo operations had more than 12,000 hourly workers when he hired on in 1977, compared to about 2,000 today.
Roger Eubank, 34, is a machine repairman and a sergeant-at-arms for Local 292. He held a sign saying “American Jobs/Keep manufacturing in the U.S.”
Eubank said joining in the picketing was an immediate decision for him.
“I have to be a part of it,” he said. “This is my life, my kids, my family.”
Several employees criticized Delphi’s decision to file for Chapter 11 reorganization bankruptcy only in the U.S. They said it was the success of Delphi’s American workforce that allowed the company to expand overseas in the first place.
Dan Sparks, a shop committeeman for Local 292, held a sign referring to Delphi CEO Steve Miller: “Miller morally bankrupt.” He said the Delphi situation extends far beyond the company.
“I hope the working class people realize it’s not just automotive,” he said. “It’s everybody affected by this.”
The GM front
Campbell, a Local 292 alternate committeeman, said General Motors Corp. must be involved in the Delphi negotiations.
“It’s pretty much responsible for all of this,” he said. “By spinning us off, their intent was to get rid of us, to basically wash their hands of any components supplier.”
Delphi announced Monday it would accelerate its discussions with GM and that GM has agreed to forego previous agreements for price reductions on Delphi components.
“These constructive actions demonstrate a willingness to accelerate efforts to achieve consensual resolutions to the significant challenges facing Delphi,” Miller said in a statement.
Delphi originally said it would file motions with bankruptcy court Dec. 16 regarding its collective bargaining and health care agreements, but it has extended the date until at least Jan. 20.
Delphi spokesman Lindsey Williams said Monday Delphi’s date extension is a response to “progress in Delphi’s discussions with GM” — not pressure from unions. He said there is no firm date for Delphi to file its bargaining agreement and retiree health care motions, but the extension should provide sufficient time for Delphi, GM and unions to reach an agreement.
On Monday, UAW President Ron Gettelfinger and Vice President Richard Shoemaker issued a joint statement on Delphi’s timeframe extension.
“We consider today’s announcement by Delphi a positive sign,” Gettelfinger and Shoemaker said. “But if Miller is serious about accelerating efforts to reach a mutually acceptable resolution out of court, he must now back up his words with action.
“As we have said before, Delphi’s second contract proposal, which would slash hourly wages by nearly 62 percent, is not a framework for an agreement, but a road map for confrontation. If Delphi is serious about restarting discussions, taking that insulting proposal off the table would be a good place to start.”
High stakes
Troy, Mich.-based Delphi, the nation’s largest auto supplier, spun off of GM in 1999.
Although Delphi has diversified its business operations, GM remains the supplier’s largest customer.
GM, hurt by declining SUV sales, has lost market share to foreign competitors; Delphi has felt the effects of GM’s struggles.
Delphi has about 185,000 employees in six divisions in about 40 countries. Kokomo is world divisional headquarters of Delphi Electronics & Safety and home to about 5,200 of its 29,900 employees.
Delphi filed for Chapter 11 reorganization bankruptcy Oct. 8, citing globally uncompetitive costs.
In Kokomo, hourly workers make about $24 to $27 an hour, about double that with benefits. Among the products made in Kokomo are engine controls, transmission controls and air bag controls.
Delphi has proposed slashing hourly wages to about $13 an hour, which the company says would make it competitive.
Lack of progress in Delphi-UAW discussions previously led some analysts to predict a Delphi strike in early 2006.
Automotive expert Jim Hossack of AutoPacific has said a Delphi strike could topple a vulnerable GM.
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