Tuesday, March 28, 2006

WBEN Radio (Buffalo, N.Y), March 28, 2006, Tuesday

Delphi To UAW: Trade Wage Cuts For Cash
Tuesday, March 28, 2006
05:52 AM - WBEN Newsroom
http://www.wben.com/news/fullstory.php?newsid=04657

Listen at--
http://eod.liquidviewer.com/wben-od/wben/20060328_Gilbert-1.wma

Jeff Gilber, auto industry reporter
Exclusive WBEN Windows Media Audio Buffalo, NY (WBEN/AP) -
Paul Siejak, President of UAW local 686 is in Detroit Tuesday to review plans that could offer Lockport's Delphi Workers huge wage cuts, with some up-front payments to ease the way for workers.
The plan is being submitted to the United Auto Workers, as Delphi tries to avert massive layoffs and plant shutdowns while it works through bankruptcy with exisiting labor contracts.
The company employs 4,000 in Lockport, and is one of the region's largest employers.
The offer includes bonusses of $50,000 per worker, to be paid for by General Motors, according to Bloomberg.
If GM balks, wage cuts would be even steeper than the $10-an- hour proposal currently on the table as an opening gambit.
"I'd be amazed if they signed on to it at this time. I'd be amazed if the UAW said that's enough," says Art Wheaton, with Cornell's Buffalo outreach office of the NYS Industrial and Labor Relations school.
" I don't anticipate anyybody signing off on this current agreement, taking this tiered reduction to go down,"
Wheaton tells WBEN.
As part of it's bankruptcy discussions, Delphi has said it could ask the court to void all union contracts this coming Friday if a wage cut deal that can help the company stay afloat is not met.
" I think they will go ahead and Delphi will ask to throw out the current contract," Wheaton says."
And then betwen now and early May when they hear that motion, they will continue negotiating.
"Buffalo's Early News spoke with auto industry reporter Jeff Gilbert, with WWJ radio in Detroit--to hear that interview, click on the audio link above.