It seems as though GM is the go-between in the negotiations between bankrupt auto parts supplier Delphi and the
United Auto Workers union.
According to a Reuters
report filed late Tuesday, Delphi is talking with GM about its restructuring efforts, while in an Associated
Press interview a UAW
official said that the union has had preliminary talks with GM in the past two weeks. But Delphi and the UAW have had
no formal negotiations since mid-November.
So, it seems like Steve Miller’s encouraging words about a deal with the UAW in Q1 2006 were at best optimistic, and
at worst a smokescreen to relieve the concerns of Delphi’s key Asia-Pacific customers. Certainly the UAW isn’t
optimistic – Richard Shoemaker told Reuters he still feels a strike “is more likely than not.”
Lots of posturing on both sides, but no action. It’s hard to see significant progress being made if the two sides
don’t start seriously negotiating, and soon.
GM bought some time by giving Delphi a break on parts prices, persuading Miller to put off his plan to file motions in
bankruptcy court to terminate Delphi’s labor contracts until late January. You have to wonder if Miller has decided GM
has the most to lose in this 3-way game, and is waiting for the General to solve his problems.
[Thanks for the tip, Glenn]