In the months since the Delphi bankruptcy, there have been many more questions than answers. In June of 2007, Local 2195 members received additional bad news with the announcement of the closing of the Alabama Site. These two events have resulted in a lot of stress and worry for our members. The information that is available is subject to change based on the progression of the bankruptcy proceedings.

To exit bankruptcy, Delphi began looking for financing to cover their debt. In addition, Delphi placed all businesses they considered non-core up for sale. The steering business was identified as a business that would be sold, with many rumors surrounding who the new owner would be. The downturn in the automotive business had left Delphi Steering with extra capacity worldwide, so the decision was made to close a number of facilities to make the business more attractive. The Alabama Site was included in this group slated to close.

Delphi began talks with a number of investment firms who were willing to put the money up to allow the exit from bankruptcy. Delphi entered into a deal with Appaloosa Management to raise the capital to cover the outstanding expenses. Appaloosa had committed to invest up to $1.08 billion in exchange for stock in the reorganized company. There were terms of the deal that Delphi had to reach such as acquiring extra financing.

Delphi went to GM for the loans and Appaloosa pulled out of the deal at the last minute citing a concern that GM’s loans would give them too much control over the new company.

In the meantime talks were progressing with several potential buyers for Delphi Saginaw, including Platinum Equity and Cerberus Capital Management. As talks progressed Platinum Equity emerged as the leader and Delphi announced they were finalizing and agreement with the firm. In February of this year the Bankruptcy court approved the sale it appeared to that ownership would be transferred late in the spring.

The transfer of assets hinged upon some complicated information technology transitions. When Appaloosa pulled out of the agreement, the sale of Delphi Saginaw was placed on hold until these patent issues could be resolved.

In May 2008 Delphi announced that it was filing suit against Appaloosa for pulling out of the deal that prevented the exit from bankruptcy. Delphi stated in a press release they had spent over $60,000,000 in fees preparing for the deal. Shortly afterwards Delphi creditors asked the bankruptcy court to allow them to join the suit against Appaloosa.

It is important for our membership that Delphi exits bankruptcy due to the fact that exiting bankruptcy will require that the pension will be fully funded. The GM Benefit guarantee provides a safety net, but with GM’s current capital issues if Delphi could handle the plan it would be better for everyone involved.

Alabama Site
The information the local is being given still indicates the site will close sometimes in late spring of 2009. Halfshafts and Intermediate shafts will be moving sometimes in November. Tie Rods and Rack and Pinion gears will continue production until operations cease.

Many questions have been raised concerning why Plant 21 is staying upon longer. This is because the businesses in Plant 23 were relocated and the gear business in Plant 21 is being wound down. Delphi simply choose not to renew their contracts on the gear business with their contract commitments running into next year.

The business in Dept. 50 will depend on how much longer GM builds Trailblazers in Moraine.
This spring layoffs began as business began to be transferred. The agreement for a number of our legacy members to transfer to Spring Hill was also negotiated.

The GM 2008 National Contract included a raise for retirees. The GM Benefit Guarantee states that a Delphi retiree will have the same scope of pension as a GM retiree.

The bankruptcy has postponed the 2008 pension increase for Delphi retirees. The latest information received states these raises will come on or before December. As more information becomes available it will be passed on.

Another issue that should be addressed is that of beneficiary. There is an issue with many of our retirees and active members not having a beneficiary named. See your benefit representative to make certain that you have a beneficiary named.

If you are a grow in make certain that you have your marriage certificate, spouses social security card and birth certificate. You should contact your benefit representative about four months before your 30th anniversary date.

The reduction in our active membership along with wage reduction has left a substantial impact on the dues and operating capital of the local union. Once the site closes next spring we will be down to retiree dues which are $2 a month.

The reduction in operating capital has resulted in the local cutting back on all expenses. The picnic was cancelled this year due to cost. Typically, a picnic cost the local $50,000 to put on. While it is painful to discontinue our normal activities, these are examples of many of the hard decisions that must be made as the site closes. It will be important to try to maintain a local union for our retirees after operations cease, so the local must be frugal with our expenses. Everyone’s understanding of this issue is greatly appreciated as things will only get worse. What few activities that have occurred this year were only because those committees had money remaining in their budgets from previous years.

The past three years has been hard on everyone and the next year will not get any easier. We must stick together through these rough roads and maintain our solidarity.

While the outcome of the Alabama Site wasn’t to anyone’s satisfaction, it could have been far worse. Look at the people at Wolverine and what happened to them. We were blessed to have the UAW looking out for us. During these times your resolve as a people is tested and everyone must make the decision for themselves on how to deal. Just remember these events could have been avoided is Delphi had been denied a case for bankruptcy. With national elections looming, do not forget the pain that has been inflicted on this membership and many others by candidates that support business at the expense of working Americans. Our way of life has been beaten down over the past eight years and we simply can’t survive four more years of the same.

As we head into the final months of production, things will get more and more difficult. It is important to remember that we must maintain our solidarity through these last days.
It is this corporation and crooked government that have allowed these corporate raiders to pick the pockets of working people. They may take our jobs but they can’t take our solidarity.
The only way they can take that is if we give it to them and we can’t allow that to happen. Let each member stand firm and show this corporation that we are a union and a strong union at that.