News

Effective November 22, 2006 the status of the Delphi new hires was changed from temporary to permanent (all employees will still have to serve the standard 90 day probationary period retroacting back to their original hire date.) UAW Vice-President Cal Rapson who handles the GM/Delphi Department negotiated the deal to end the temporary status for all new employees hired prior to November 20, 2006. Anyone hired after this date will be placed on temporary status pending the next agreement on new hire status between the UAW and Delphi.

The move from temporary status for our new members is the result of the UAW negotiating on behalf of the membership. Management may try to take credit for this, but the fact remains that Delphi would have kept each new member as a temporary if they could have. If you don’t believe this, just ask friends of yours that work at many area factories without union representation. Many of these factories keep new hires as a “temp” for years to avoid paying benefits. Delphi would have definitely followed the same path without the intervention of the UAW.

The end of the temporary status implements the full two-tiered agreement settled between the UAW and Delphi that went into effect on May 03, 2004 for anyone hired after that date. This agreement covers everyone hired since June 2006. For simplification sake, we will cover the highlights of this agreement for the benefit of our new members. This agreement is set to expire on September 14, 2011. However, it should be noted that actions by the bankruptcy courts or a pending sale could change the duration of this contract supplement in the future.

Highlights of the UAW Delphi Second Tier Agreement
Acquiring Seniority
Any new hire acquires seniority after completing their 90-day probationary period. Once seniority is acquired, you are then eligible to:
- transfer to another department
- turn in a shift preference to change shifts (provided a lower seniority person is in your shift preference group)
- eligible for all holiday, jury duty and bereavement pay
Vacation
With less than one year seniority a new member receives 40 hours vacation once they acquire seniority. To get paid for this vacation, you must work at least 13 pay periods for 50% and 26 pay periods for 100% of the forty hours. For example, if you were hired prior to October 01, 2006 you will be eligible for 40 hours vacation with 20 hours paid. Any unused vacation pay will be paid after February 01, 2007. Vacation entitlement runs on a calendar year basis and starts over on January 01, 2007.
Wages
All production workers are hired at the rate of $14.00 per hour, with job classifications falling within three groups depending on the complexity of the job. The maximum pay for the three classifications is as follows:
Group A Group B    Group C
$18.50      $16.50        $14.50
Each production employee will receive a 3% increase at the end of each 26-week period until they top out in their classification. For example, a person working on a job that is classified in Group C would receive a $.42 an hour raise in 26 weeks and then top out at $14.50 at the end of the next 26 week period. A person working on a job that falls within Group B would continue to receive a 3% raise every 26 weeks until they reached $16.50 an hour. This would mean they would reach full pay in three years. A person working in Group A would continue receiving these 3% increases every 26 weeks until they reached $18.50 in five years.
Skilled trades wages for employees hired after May 03, 2004 will continue to be based on the current wage agreement for Skilled Trades in the National Agreement.
COLA
Cost of Living Allowance will be paid beginning in the second quarter of the fourth year of the supplement (second quarter 2008) based on the formula included in the second tier agreement. Beginning with the second quarter of the fourth year of the agreement COLA will be 70% of the full amount of the current COLA rate topping out at 100% of the COLA rate in the second quarter of the sixth year of the agreement (second quarter 2010).
Independence Week Shutdown
All employees hired in under the second tier agreement will have the option of taking vacation (provide they quality for vacation) or unpaid leave of absence.
Benefits
Seniority employees qualify for health care on the first day of the eighth month after their hire date. (For example an employee hired in June 2006 would be eligible for health care benefits effective February 01, 2007). Health care coverage includes major medical and prescription drug coverage. There is NO monthly charge for the health care coverage. The co-pay system will be as follows:
                         Annual Deductible        In-Network          Out-of-Network
Individual                                                       $300                       $1200
Family                                                             $600                        $2100
Co-Payments
Plan Pays                                                        90%                          65%
Enrollee Pays                                                 10%                          35%
Out of Pocket Maximum
Individual                                                     $1000                        None
Family                                                            $2000                         None
Delphi will establish a Flexible Spending Account (FSA) for each employee of $600 under IRS guidelines. Once the maximum $2000 co pay has been reached for the year, the plan will cover all major medical expense until the start of a new calendar year.
Prescription Drug Coverage
Once an employee becomes eligible for health care, the prescription drug benefit kicks in. Under this plan all prescription drugs are covered at the rate of $7.50 for a generic and $15.00 for a name brand for a one-month supply. When utilizing the mail order pharmacy, co pays are $7.50 for generic and $15.00 for name brand for a 90-day supply. All maintenance drugs are required to be filled through the mail order pharmacy.
Dental Plan
Employees become eligible for dental coverage after attaining three years of seniority.
Vision Plan
Employees with three years of seniority but less than five are eligible for covered annual eye exams and can receive frame and lenses discounts through network providers. Employees with five or more years of seniority are fully covered under the vision plan.
Pensions
Employees hired on or after May 03, 2004 will participate in Delphi’s individual retirement account for each employee. These accounts will accrue interest at the 30 year U.S. Treasury Bond Rate. Plan assets will be retained in a pension trust subject to vesting and portability provisions. Delphi will make annual contributions equal to 5.4% of wages to each employees IRA account.
Post Retirement Health Care Account
Delphi will credit $.50 per compensated hour for each employee will be credited annually to individual post retirement accounts that will vest upon retirement (to assist in providing employees with health care coverage after they retire). These accounts will accrue interest credited annually at the 30 year U.S. Treasury Bond rate. Retirees will have access to health care at Delphi group rates regardless of preexisting conditions.
Personal Savings Plan
Employees hired on or after May 03, 2004 have the opportunity to participate in the Delphi Personal Savings Plan (PSP) allowing additional personal contributions to a separate retirement savings systems. After the first six months of seniority, Delphi will match 30% of the first 7% of employee contributions. The company matching section of the account will vest after three years of seniority.
Life and Income Insurance
Basic Life Insurance-Basic life insurance will be based on wages in accordance with the Schedule of Benefit found in the UAW-Delphi Life Insurance Plan. The current plan provides life insurance coverage of $40,500 per employee and $60,750 if an employee is killed in a non-work related accident.
Work Related Death Benefit – Coverage will be based on wages in accordance with the Schedule of Benefit found in the UAW-Delphi Life Insurance Plan, which is $81,000 per employee.
Sickness and Accident Benefit – One year of seniority but less than three years is eligible for 26 weeks of S & A benefits. Three or more years of seniority is eligible for 52 weeks. The current S&A Benefit is $425.00 per week.
Extended Disability Benefits- One year but less than three, is eligible for 13 weeks. Three years but less than five is eligible for 26 weeks. Five or more years is eligible for the same duration as provided in the 2003-2007 UAW-Delphi Extended Disability Plan.

Remember, these provisions are currently in affect but are subject to court action during the bankruptcy proceedings. The UAW is fighting to maintain the integrity of the agreement and is willing to work with the potential new owners to protect the membership during this transitional phase. Please see you benefit representative or district committeeperson for further questions.