Delphi gets court approval of agreements with four unions

By Reshmi Basu

New York, Aug. 16 - Delphi Corp. obtained approval Thursday for the company's labor settlement agreements with four of its unions from the U.S. Bankruptcy Court for the Southern District of New York.

Judge Robert D. Drain approved the memorandum of understanding with the International Association of Machinists (IAM), the International Brotherhood of Electrical Workers (IBEW) and the International Union of Operating Engineers (IUOE).

He also approved a separate agreement with the International Union of Electrical Workers-Communications Workers of America (IUE-CWA), the company's second-largest union.

With the exception of the IUE-CWA, all three unions have ratified the contracts, Delphi attorney Jack Butler of Skadden, Arps, Slate, Meagher & Flom told the court.

In rendering his ruling, Drain called the agreements "fair and reasonable," adding that the unions were "well-represented."

He also noted that the settlements were necessary to minimize the effect on all the parties, including the debtors' creditors, who have been affected by the current financial market predicament.

Meanwhile Butler said Delphi was still negotiating with the United Steelworkers.

Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy on Oct. 8, 2005. Its Chapter 11 case number is 05-44481.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.