Delphi had given the UAW two different proposals, neither of which the UAW felt it could take to its membership. The UAW's counterproposal on wages and benefits was only ten pages long, but is so complicated that it will take a while yet for Delphi to really sort out what it really means. Coming to an agreement with the UAW is essential for Delphi to emerge from bankruptcy as a recapitalized company. However, the UAW knows that if it gives any more concessions to Delphi, the big three automakers will want the same thing during their contact talks this summer. With the Delphi situation also involving legacy issues for GM, Cerberus exiting the deal and other private equity companies having to restructure, and the UAW needing to get its next move right, it is a thick plot for all involved.
[Source: Detroit News]
