Delphi vs. UAW: Round 1
Opening shots were fired today in the Delphi-UAW trial, and the atmosphere in the courtroom has already become tense and unfriendly. The first day of the trial began with case outlines by each side. Delphi wants to cut 23,000 jobs, reduce retiree benefits, increase insurance premiums, and close or sell 25 plants by 2008. The UAW has threatened to strike if Delphi is successful. More background information, including the desires of each party, can be found here.
Delphi acknowledged that this move would cause hardship for thousands of workers, but sees no alternative. Jack Butler, the attorney representing Delphi, emphasized that the state of the US automotive industry and the competition from abroad means that high-paying manufacturing jobs are a thing of the past.
The UAW countered that Delphi is merely using its employees to put pressure on GM to void its contracts, that Delphi has not exhausted all negotiations, and that their proposed wage cuts would push workers out to the poverty line.
The fight got considerably uglier during the day, with neither side backing down: Delphi maintains that it never received any counter-offers from the union and the union claiming that Delphi was trying to use the contract annulment request as a negotiating tool.
Hearings continue until Friday, or possibly longer.