GM to take back 5 Delphi plants, contract details show

More bribes for the UAW
GM to take back 5 Delphi plants, contract details show http://tinyurl.com/ou2dal
Automotive News May 26, 2009 - 4:18 pm ET
UPDATED: 5/26/09 5:38 p.m.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. A spokesman for the UAW could not be immediately reached for comment. Delphi filed for Chapter 11 protection in October 2005.
Delphi spokesman Lindsey Williams said announcing the deal is premature. Any agreement regarding Delphi assets is subject to approval by lenders who have loaned money to Delphi in bankruptcy as well as approval by the court, he said.
He declined to discuss any of the plants except Delphi Saginaw Steering, which GM agreed to take back from Delphi.
The White House automotive task force, however, put a hold on the deal until it could evaluate how the plant fits with Delphi's longer-term strategy to emerge from Chapter 11. A hearing on Delphi's restructuring is scheduled on May 29 in New York bankruptcy court.
The Delphi workers at the five 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.
GM's move to take back the Delphi plants is similar to measures taken in 2005 by Ford Motor Co. to take back about 20 former Visteon Corp. plants and operations. Ford has been selling, closing or restructuring those operations ever since.
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Wow, befitting Delphi goes to GM, are they not the ones that tried to sue their own investors for not coughing up more cash to bailout their sorry asses? Been bankrupt for 9 years or so after they discovered after GM sold them when their books were cooked?
$20B on corruption just for GM.... When will the taxpayers protest? When they get the bill? Or are people really this stupid?
No wonder no one loans money to US corporations. Credit rating for auto is sub-zero.

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