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Two Delphi IUE - CWA Locals Authorize Strike

  • 03-14-2006
CHICAGO (Reuters) - Two union locals have authorized leaders to call a strike against bankrupt auto parts maker Delphi Corp. (DPHIQ.PK) should a judge toss out its current labor contracts, union representatives said on Monday.þþSix of eight local units of the International Union of Electrical Workers-Communications Workers of America have now authorized strikes should talks with Delphi over labor costs fail, IUE-CWA spokeswoman Lauren Asplen said.þþThe IUE-CWA, which represents about 8,500 Delphi U.S. hourly workers, instructed local leaders to take strike authorization votes to give top leaders the power to call a strike if necessary.þþDelphi, which filed the biggest bankruptcy in U.S. automotive history last October, is in talks with its unions and former parent General Motors Corp. (GM.N) to cut its wage and benefit costs to reorganize money-losing U.S. operations.þþTroy, Michigan-based Delphi has said it would file court papers on March 31 to reject its labor contracts and cut retiree benefits if it cannot reach an agreement with its unions by then. A hearing would be scheduled for May.þþA strike against Delphi could quickly disrupt production at GM, which spun Delphi off in 1999.þþIn votes on Sunday, IUE-CWA Local 717 workers at a Delphi plant in Warren, Ohio, and Local 711 workers in Gadsden, Alabama, approved the strike authorization requests.þþLocal 717 President Gary Reiser said 94 percent of the Warren, Ohio, members who voted backed authorizing a strike, while Asplen said voting was unanimous in Alabama.þþLocal 717 represents 3,800 workers who produce plastic moldings, wiring and metal stampings for Delphi, while Local 711 represents 122 workers who produce instrument panels.þþTop officials from the IUE-CWA automotive conference board and the leaders of the Delphi local units plan two days of informational meetings this week in the Detroit area.þþWhen it filed for bankruptcy, Delphi had about 50,000 U.S. employees, including about 34,750 hourly workers, most of whom are represented by unions. The IUE-CWA has the second-largest representation of Delphi hourly workers behind the United Auto Workers union, which represents about 24,000.þþThe UAW has not called for strike authorization votes from its local units at this point. UAW international leaders plan to meet with Delphi local UAW leaders in Detroit on Wednesday.þþ

Source: NY Times