Auto Service World
News   May 4, 2006   by Auto Service World

UAW Seeks Strike Mandate


The United Auto Workers are gearing up ask their members across the country for a strike vote, a common negotiation tactic aimed at forcing a resolution between the union and slumping parts maker, Delphi.
While standard, if carried out, a strike involving some 23,000 Delphi workers, could leave General Motors in tough financial straits, as they try and rebound after massive losses last year.
Merrill Lynch automotive analyst John Murphy recently told his clients, that during the first 60 days of a strike, GM would burn through $7 billion to $8 billion in cash.
When speaking to a group of bankers, GM Chief Executive Rick Wagoner said, “Clearly, our top priority issue is resolving the Delphi situation successfully. Real important that we come to a resolution on that, and we believe that the conditions are there to do that, although there is plenty more hard work in front of us on that.”
Delphi and GM have already seen some success with what they call an attrition plan, which could see as many as 25,000 hourly workers let go through buy-outs and early retirement package.
Many feel as though the number of workers taking that option, will increase as the possibility of a strike draws nearer.
At the moment, all attention seems to be focused on an upcoming court ruling on May 15th, at which time a judge will rule on whether or not Delphi can simply void its contract with workers, as part of its restructuring efforts.


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