GM to take back 5 Delphi plants, contract details show

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GM to take back 5 Delphi plants, contract details show.

David Barkholz
Automotive News
May 26, 2009 - 4:18 pm ET

DETROIT -- General Motors has agreed to assume ownership of five Delphi Corp. plants in the United States and operate the UAW-manned factories as a wholly owned subsidiary, according to union highlights of the tentative new contract between GM and the UAW.

The plants are Delphi Saginaw Steering in Saginaw, Mich.; Delphi Thermal Systems in Lockport, N.Y.; Delphi Powertrain in Rochester, N.Y.; Delphi Powertrain Systems in Grand Rapids, Mich.; and Delphi Electronics and Safety in Kokomo, Ind.

The GM subsidiary will employ all UAW-represented workers at the plants under the current Delphi labor agreement there, according to the highlight book that the UAW intends to share with the GM rank and file this week as the union pushes for ratification of the contract concessions.

Those concessions were regarded as necessary by GM and the U.S. Treasury Department for the automaker to restructure its costs and continue to receive federal loans that now total $19.4 billion.

Union leaders from GM locals today unanimously endorsed the tentative pact for ratification, the UAW said in a statement.

GM faces a probable bankruptcy filing by Monday after failing to negotiate the restructuring of $27 billion in bond debt.

A GM spokesman declined to comment on the Delphi agreement. Spokesmen for Delphi and the UAW could not be immediately reached for comment. Delphi filed for Chapter 11 protection in October 2005.

The Delphi workers at the plants took concessions several months ago as part of the company's bankruptcy restructuring. The parts supplier, which was spun out of GM in 1999, has been unable to emerge from Chapter 11 because of a lack of exit financing.

UAW membership at the plants is slightly more than 10,000, compared with more than 30,000 when Delphi entered Chapter 11 protection.
 
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