Delphi reaches new contract agreement with steelworkers' union, last of four unions to settle issues

By Caroline Salls

Pittsburgh, Aug. 20 - Delphi Corp. has reached an amended contract agreement with the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union (USW), according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

General Motors Corp. is also a party to the amended contract agreement, which is subject to court approval.

As previously reported, Delphi obtained court approval of amended contracts with the International Association of Machinists (IAM), the International Brotherhood of Electrical Workers (IBEW) and the International Union of Operating Engineers (IUOE) on Thursday. The USW contract is the final one covered under Delphi's initial collective bargaining agreement rejection motion.

Under the amended USW contract:

• The USW collective bargaining agreements will be extended until Sept. 14, 2011;

• Delphi's Home Avenue operations will be sold or closed;

• A workforce transition program will be implemented for eligible USW-represented employees that provides transformation plan options, including attrition options;

• Some terms of the USW agreements will be modified in connection with plant closing and sale moratoriums, sourcing job security, Independence week pay, vacation entitlement, joint activities funding, tuition assistance, guaranteed income stream, benefits, temporary employees and holidays;

• All employee, retiree and union asserted and unasserted claims will be settled, except for rights to vested pension benefits, workers' compensation benefits, unemployment compensation benefits, future claims arising out of the modified USW contracts and pending ordinary course grievances of employees remaining in the workforce;

• Delphi's obligation to provide some retiree welfare benefits will be eliminated and GM will be obligated to provide retiree welfare benefits for some USW-represented employees;

• Delphi's existing pension plan will be frozen upon its emergence from Chapter 11 and GM will be obligated to pay some benefits for USW-represented employees;

• The USW will receive a $3 million general unsecured pre-bankruptcy claim against Delphi in complete settlement of all USW claims;

• The amount of $9 million will be paid by GM to the Voluntary Employees' Beneficiary Association Trust to resolve claims asserted by the USW; and

• A site plan will be implemented for Delphi's Vandalia Thermal operation, for which it is necessary to achieve an all-in blended labor wage and benefit rate of $19.57 per hour as soon as possible and maintain that rate for the life of the Vandalia local agreement.

A hearing is scheduled for Aug. 29.

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

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