So, the
UAW isn’t talking to Delphi, and the two
compensation proposals made by the bankrupt supplier weren’t even considered worthy of a counteroffer by the
union. What next? It appears that Delphi may be preparing a third proposal that is somewhat more attractive, in an
attempt to avoid hitting the de facto Jan. 20th deadline for negotiations with the union. The unifying
force here is thought to be GM, who is looking for UAW buy-in to its recently announced plan to cut jobs and close
assembly plants (not to mention the more immediate concern of preventing a strike).
Will the automaker end up subsidizing part of Delphi’s wages, and can it afford to do so? One has to wonder if this
isn’t one of those plans that looks great in the short term, and ends up creating an even larger problem in a
few more years. That, of course, has been a common thread throughout the past three decades in the US
auto industry.