As angry union workers at Delphi Corp. threaten to strike over wage cuts, the chief executive of the bankrupt parts supplier warned Wednesday that such a move could put more workers in danger of losing their jobs.
“I think they understand that nothing could be gained by a strike except to hasten and expand the number of plants that might have to close,” CEO Robert S. “Steve” Miller said at a press conference in Detroit, adding that he doubts that United Auto Workers members will walk out.
“This union does not look to me like AMFA, which took a suicide walk off the cliff at Northwest Airlines,” he said, referring to the Aircraft Mechanics Fraternal Association, which struck in September. The airline is hiring replacement workers for the striking mechanics.
“The best thing they can do for their own financial security is to stay on the job,” Miller said.
The UAW, which represents 24,000 workers at Delphi, had no comment on Miller’s remarks or warnings at union locals that a strike is possible.
UAW Local 686 at a Delphi plant in Lockport, N.Y., near Buffalo told members in a flier distributed Tuesday that the union could strike over the deep cuts in wages and benefits the company is seeking. About 4,000 UAW members work at the plant.
Delphi, which filed for bankruptcy Saturday, wants UAW workers to accept wage cuts to $10-$12 an hour from the current $27 and reductions in benefits to match what other suppliers pay.
Paychecks for union workers at Delphi could get smaller next spring under a timetable set in bankruptcy court. The company will send proposals to its unions by Oct. 21 and negotiate until Dec. 16. If no deal is reached, Delphi will ask the court to void its union contracts in January.
Union members expressed frustration, however, that they have not seen anything.
“If you’re serious about getting the negotiations done by Dec. 16, you ought to talk to us,” said a UAW official who asked not to be named, directing his remarks at Miller.
Miller said he is confident Delphi can work out agreements with the UAW and its other unions despite growing rancor among workers facing huge pay cuts.
“I don’t blame these people. They are being hurt. Their expectations are being dashed,” he said.
Miller expects the company to emerge from bankruptcy in two years and said he is counting on General Motors Corp. to continue to be a major customer. GM, which spun off Delphi in 1999, currently accounts for about half of Delphi’s $28 billion revenue.
“I am asking General Motors for one thing: Give me a full, fair shot at your business,” he said. “I don’t expect [GM] to give it to me out of charity. Just give me a fair shot.”
Miller repeated his warnings that if GM doesn’t win concessions from the UAW, it could join Delphi in bankruptcy. UAW workers at GM and Delphi receive the same pay and benefits.
“I do not think it is imminent. I do not think it is likely,” Miller said about the chances of GM going bankrupt. “My only call to action is, you need to do something or you are at risk of ending up where Delphi has ended up.”
GM has been trying to reach an agreement with the UAW since April to shift more health-care costs to workers. The current UAW contract runs for two more years.
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rpopely@tribune.com
