Delphi asks bankruptcy court to void UAW contracts
03-31-2006, 11:17 AM
#1
Banned
Thread Starter
Join Date: Jul 2001
Location: Milton, FL
Posts: 3,604
Delphi asks bankruptcy court to void UAW contracts
http://money.cnn.com/2006/03/31/news...ex.htm?cnn=yes
Delphi actions could bankrupt GM
Auto parts maker asks bankruptcy court to void contracts, plans to close or sell 21 plants; is a strike coming that could force GM into bankruptcy?
By Chris Isidore, CNNMoney.com senior writer
March 31, 2006: 11:59 AM EST
NEW YORK (CNNMoney.com) - Delphi announced plans Friday to throw out its union contracts and shed more than 28,000 workers as it shut down most of its U.S. operations -- moves that could spark strikes at the auto parts maker and a possible bankruptcy filing at its biggest customer, General Motors.
Delphi (Research) filed motions with the federal judge overseeing its bankruptcy proceedings to shed contracts with the United Auto Workers union (UAW) and another union that it says it can no longer afford. It also announced plans to sell or close 21 of its 28 plants.
Auto parts maker asks bankruptcy court to void contracts, plans to close or sell 21 plants; is a strike coming that could force GM into bankruptcy?
By Chris Isidore, CNNMoney.com senior writer
March 31, 2006: 11:59 AM EST
NEW YORK (CNNMoney.com) - Delphi announced plans Friday to throw out its union contracts and shed more than 28,000 workers as it shut down most of its U.S. operations -- moves that could spark strikes at the auto parts maker and a possible bankruptcy filing at its biggest customer, General Motors.
Delphi (Research) filed motions with the federal judge overseeing its bankruptcy proceedings to shed contracts with the United Auto Workers union (UAW) and another union that it says it can no longer afford. It also announced plans to sell or close 21 of its 28 plants.
But the UAW, the company's largest union, attacked the court filing, saying it killed momentum towards a labor agreement.
"Today it appears there is no basis for continuing discussions," UAW President Ron Gettelfinger and union VP Richard Shoemaker, the top negotiator with Delphi, said in a statement.
"In the event the court rejects the UAW-Delphi contract and Delphi imposes the terms of its last proposal, it appears that it will be impossible to avoid a long strike," they said.
"Today it appears there is no basis for continuing discussions," UAW President Ron Gettelfinger and union VP Richard Shoemaker, the top negotiator with Delphi, said in a statement.
"In the event the court rejects the UAW-Delphi contract and Delphi imposes the terms of its last proposal, it appears that it will be impossible to avoid a long strike," they said.
"Motions to reject labor agreements are fairly common in reorganization proceedings and we have seen this approach play out to agreed resolutions in other cases," GM CEO Rick Wagoner said in a separate statement.
Delphi also filed with the court to void about half of its contracts to supply GM's North American plants. Wagoner didn't address that filing in his statement.
Delphi also filed with the court to void about half of its contracts to supply GM's North American plants. Wagoner didn't address that filing in his statement.
Last edited by anasazi; 03-31-2006 at 11:20 AM.
03-31-2006, 12:10 PM
#3
Registered User
Join Date: Nov 2000
Location: Chicagoland IL
Posts: 16,179
Re: Delphi asks bankruptcy court to void UAW contracts
We'll see how self destructive the UAW actually is.
If the UAW strikes against Delphi, GM will most probably be forced to declare bankruptcy soon thereafter, (with Ford following).
After that, all bets are off. The UAW will then be a minor footnote in 20th century history books.
If the UAW strikes against Delphi, GM will most probably be forced to declare bankruptcy soon thereafter, (with Ford following).
After that, all bets are off. The UAW will then be a minor footnote in 20th century history books.
03-31-2006, 12:34 PM
#5
Registered User
Join Date: Nov 2000
Location: Chicagoland IL
Posts: 16,179
Re: Delphi asks bankruptcy court to void UAW contracts
Originally Posted by Z28x
Ford made $2 Billion last year. GM lost $10.6 Billion
03-31-2006, 12:58 PM
#6
Registered User
Join Date: Jan 2000
Location: Albany, NY
Posts: 10,287
Re: Delphi asks bankruptcy court to void UAW contracts
Originally Posted by Z284ever
Ford WILL NOT be able to compete with a Chapter 11 protected GM. If GM files, expect Ford to follow.
03-31-2006, 01:03 PM
#7
Registered User
Join Date: Nov 2000
Location: Chicagoland IL
Posts: 16,179
Re: Delphi asks bankruptcy court to void UAW contracts
Originally Posted by Z28x
hmmm... interesting, but Ford needs to start losing a lot of money before thay can be allowed to declare Ch.11 How much does Ford need to loose to be able to do that?
03-31-2006, 01:37 PM
#8
Registered User
Join Date: Nov 2001
Location: Far, far away
Posts: 488
Re: Delphi asks bankruptcy court to void UAW contracts
Originally Posted by Z284ever
Ford is in worse shape than you think.
03-31-2006, 01:39 PM
#9
Registered User
Join Date: Mar 2001
Location: The Golden State
Posts: 13,711
Re: Delphi asks bankruptcy court to void UAW contracts
It's not so much that Ford's in that bad shape (it's actually pretty close to recovering), it's that a General Motors filing for bankruptcy puts it at advantages that it's competitors will need to (and be forced to) match.
GM would have the power to also void labor contracts, would have the ability to restructure payments to vendors, renegotiate taxes and loans, close any plant it felt it needed to without any debate with communities let alone the UAW, and might even be free to move alot of it's business to cheaper countries. Ford would be forced to file. Believe it or not, if it didn't want to get wiped out in all of this, so would Chrysler!
Going back to Ford, it has the ability to sustain itself right now. It's plugged it's hemmoraging, it's cars are coming out without recalls or noteworthy flaws, standing apart from the other big 2 by promoting "Green" cars. This "Shrinking to Profitability" scheme is actually working.
But Ford's former glory will be permanently gone without a big hit, and to be honest, I don't see anything on the horizon, and I don't see the attitude at Ford to be spectacular or original like it was poised to be just a few years ago. The 427 would have made a better new Crown Vic than a Futura, The Zephyr would have been a better new RWD Lincoln LS than a Mazda 6. The slab sided Lincoln Continental concept would be a hit today, especially with the "new-style" Lincoln grille. Ford's still waffling on a RWD sedan.
Mark Fields is a mixed bag IMO. On one hand, he brought back Ford's "Hurricane" OHC V8 project and at least seems to be reviewing a RWD sedan instead of dismissing it outright as was done not long ago. But he also seems partially responsable for dissolving SVT, and doesn't seem to be considering a GT replacement.
GM would have the power to also void labor contracts, would have the ability to restructure payments to vendors, renegotiate taxes and loans, close any plant it felt it needed to without any debate with communities let alone the UAW, and might even be free to move alot of it's business to cheaper countries. Ford would be forced to file. Believe it or not, if it didn't want to get wiped out in all of this, so would Chrysler!
Going back to Ford, it has the ability to sustain itself right now. It's plugged it's hemmoraging, it's cars are coming out without recalls or noteworthy flaws, standing apart from the other big 2 by promoting "Green" cars. This "Shrinking to Profitability" scheme is actually working.
But Ford's former glory will be permanently gone without a big hit, and to be honest, I don't see anything on the horizon, and I don't see the attitude at Ford to be spectacular or original like it was poised to be just a few years ago. The 427 would have made a better new Crown Vic than a Futura, The Zephyr would have been a better new RWD Lincoln LS than a Mazda 6. The slab sided Lincoln Continental concept would be a hit today, especially with the "new-style" Lincoln grille. Ford's still waffling on a RWD sedan.
Mark Fields is a mixed bag IMO. On one hand, he brought back Ford's "Hurricane" OHC V8 project and at least seems to be reviewing a RWD sedan instead of dismissing it outright as was done not long ago. But he also seems partially responsable for dissolving SVT, and doesn't seem to be considering a GT replacement.
03-31-2006, 03:22 PM
#11
Registered User
Join Date: Aug 1998
Location: neverneverland
Posts: 854
Re: Delphi asks bankruptcy court to void UAW contracts
Originally Posted by guionM
It's not so much that Ford's in that bad shape (it's actually pretty close to recovering), it's that a General Motors filing for bankruptcy puts it at advantages that it's competitors will need to (and be forced to) match.
GM would have the power to also void labor contracts, would have the ability to restructure payments to vendors, renegotiate taxes and loans, close any plant it felt it needed to without any debate with communities let alone the UAW, and might even be free to move alot of it's business to cheaper countries. Ford would be forced to file. Believe it or not, if it didn't want to get wiped out in all of this, so would Chrysler!
Going back to Ford, it has the ability to sustain itself right now. It's plugged it's hemmoraging, it's cars are coming out without recalls or noteworthy flaws, standing apart from the other big 2 by promoting "Green" cars. This "Shrinking to Profitability" scheme is actually working.
But Ford's former glory will be permanently gone without a big hit, and to be honest, I don't see anything on the horizon, and I don't see the attitude at Ford to be spectacular or original like it was poised to be just a few years ago. The 427 would have made a better new Crown Vic than a Futura, The Zephyr would have been a better new RWD Lincoln LS than a Mazda 6. The slab sided Lincoln Continental concept would be a hit today, especially with the "new-style" Lincoln grille. Ford's still waffling on a RWD sedan.
Mark Fields is a mixed bag IMO. On one hand, he brought back Ford's "Hurricane" OHC V8 project and at least seems to be reviewing a RWD sedan instead of dismissing it outright as was done not long ago. But he also seems partially responsable for dissolving SVT, and doesn't seem to be considering a GT replacement.
GM would have the power to also void labor contracts, would have the ability to restructure payments to vendors, renegotiate taxes and loans, close any plant it felt it needed to without any debate with communities let alone the UAW, and might even be free to move alot of it's business to cheaper countries. Ford would be forced to file. Believe it or not, if it didn't want to get wiped out in all of this, so would Chrysler!
Going back to Ford, it has the ability to sustain itself right now. It's plugged it's hemmoraging, it's cars are coming out without recalls or noteworthy flaws, standing apart from the other big 2 by promoting "Green" cars. This "Shrinking to Profitability" scheme is actually working.
But Ford's former glory will be permanently gone without a big hit, and to be honest, I don't see anything on the horizon, and I don't see the attitude at Ford to be spectacular or original like it was poised to be just a few years ago. The 427 would have made a better new Crown Vic than a Futura, The Zephyr would have been a better new RWD Lincoln LS than a Mazda 6. The slab sided Lincoln Continental concept would be a hit today, especially with the "new-style" Lincoln grille. Ford's still waffling on a RWD sedan.
Mark Fields is a mixed bag IMO. On one hand, he brought back Ford's "Hurricane" OHC V8 project and at least seems to be reviewing a RWD sedan instead of dismissing it outright as was done not long ago. But he also seems partially responsable for dissolving SVT, and doesn't seem to be considering a GT replacement.
03-31-2006, 04:05 PM
#12
Registered User
Join Date: Jun 2001
Location: Pewee Valley, KY
Posts: 4,600
Re: Delphi asks bankruptcy court to void UAW contracts
Originally Posted by Z28x
hmmm... interesting, but Ford needs to start losing a lot of money before thay can be allowed to declare Ch.11 How much does Ford need to loose to be able to do that?
03-31-2006, 06:57 PM
#14
Registered User
Join Date: Aug 2001
Location: Michigan's left coast
Posts: 2,405
Re: Delphi asks bankruptcy court to void UAW contracts
Originally Posted by guionM
It's not so much that Ford's in that bad shape (it's actually pretty close to recovering), it's that a General Motors filing for bankruptcy puts it at advantages that it's competitors will need to (and be forced to) match.
I'm blown away by the fact that GM's stock actually went up a few pennies today. Either I'm a complete idiot for thinking that this Delphi announcement is potentially really bad news, or maybe those Wall Street guys aren't quite as clever as one would hope.
03-31-2006, 08:00 PM
#15
Registered User
Join Date: May 2004
Posts: 248
Re: Delphi asks bankruptcy court to void UAW contracts
Right on Guy.
Ive read reports that Ford has alot more cash then GM. Also if Ford goes private it "would" be a plus for them. Ford is in WAY better shape then GM is right now too. And the Ford family would have to give the co. up if filing is to happen. Grandpa Henry will be pissed. Even with all the doom and gloom in the media GM and Ford have a few more cards to play.
These buyouts work for some, But not for everyone. There is more to retiring then just filling out paperwork. I could go on about that, But I wont waist my time here.
Ive read reports that Ford has alot more cash then GM. Also if Ford goes private it "would" be a plus for them. Ford is in WAY better shape then GM is right now too. And the Ford family would have to give the co. up if filing is to happen. Grandpa Henry will be pissed. Even with all the doom and gloom in the media GM and Ford have a few more cards to play.
These buyouts work for some, But not for everyone. There is more to retiring then just filling out paperwork. I could go on about that, But I wont waist my time here.
Last edited by guesswhoo; 03-31-2006 at 08:04 PM.