Have talks between Delphi and its second-largest union broke down?

The Detroit News is reporting that negotiations between bankrupt supplier Delphi and the International Union of Electrical Workers-Communication Workers of America (IUE-CWA) have halted. With only 13 days remaining until the bankruptcy court is scheduled to hear Delphi’s request to void its labor contracts, the possibility of a strike by the IUE remains, although a company-wide shutdown is not expected. Considered more likely are”wildcat” work stoppages, which could potentially be just as crippling to Delphi’s customers.

By eric@bryantperformance.com
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The
Detroit News is reporting that negotiations between bankrupt supplier Delphi and the International Union of Electrical
Workers-Communication Workers of America (IUE-CWA) have halted. With only 13 days remaining until the
bankruptcy court is scheduled to hear Delphi’s request to void its labor contracts, the possibility of a strike by the
IUE remains, although a company-wide shutdown is not expected. Considered more likely are “wildcat” work
stoppages, which could potentially be just as crippling to Delphi’s customers.

The main issue surrounding the supposedly failed labor talks has to do with the parts maker’s plan to drastically
cut wages. The United Auto Workers (Delphi’s largest union) appears to be satiated (at least for the time
being) by subsidies from General Motors, where as no similar relationship appears to exist between the IUE and Delphi’s
former parent company.

[Source: The Detroit News]