Delphi, UAW agreement draws mixed reactions among 725 Anderson workers

The agreement between the United Auto Workers, Delphi Corp. and General Motors Corp. means losing more jobs that will never return, according to Rick Zachary, president of UAW Local 662. “It is probably the end of a Delphi presence in Anderson.”

Zachary said the buyout provision probably means that there won’t be many Delphi plants left in the United States.

There are approximately 725 Delphi employees in Anderson, according to Zachary.

“It is good for those eligible to retire, but not real good for the American economy,” he said.

Zachary said the agreement may save some of the lower paying jobs as Delphi seeks to reorganize to get out of bankruptcy.

The agreement allows current UAW members to apply for up to 5,000 jobs in GM plants, known as a flow-back provision.

“You would be foolish not to take the flow back to GM,” Zachary said.

Zachary has 7 1/2 years with Delphi. Previously he worked 22 years at ABC Rail in Anderson before that plant closed.

“I have to look at all the options,” he said. “I will probably try to go to GM.”

Zachary said he was not surprised by the announcement and that companies today believe it is a good thing to downsize and eliminate jobs.

Local union officials will travel to Detroit next week to get all the details of the agreement, Local 662 Bargaining Chairman Estes Boles said.

“This is an attrition agreement,” he said. “If you have 30 years of employment you would receive a bonus of $35,000.”

The federal judge presiding over the Delphi bankruptcy filing has to approve the agreement, Boles said.

“Those employees with between 27 and 29 years of employment could receive a monthly lump sum payment if they agree to retire at 30 years,” Boles said. “That would be a good deal for them.”

As many as 40 percent of the Anderson workers could qualify for the buyout, he said.

Approximately 50 people have left Delphi jobs in Anderson to take positions at other GM plants during the past year, said Boles.

“GM is looking to cut 30,000 jobs by 2008,” he said. “This may make room for some of the younger workers.”

Since an agreement has been discussed for a long time the Wednesday announcement didn’t come as a surprise to Boles.

“Under the circumstances, they couldn’t get a better agreement,” Boles said.

“This may slow down their bankruptcy,” he said of Delphi. “It could provide opportunities for younger workers.”

With 39 years of employment, Boles said he will consider the incentive package.

Delphi spokesman Brad Jackson said the agreement is a part of the restructuring that needs to take place.

“We’re looking at transforming the work force,” Jackson said. “Delphi is trying to become more cost competitive.”

How many people in Anderson will be eligible for the retirement lump sum is not known, according to Jackson.

“All the people in Anderson would be eligible for the 5,000 GM flow-back jobs that are available,” he said. “They would be eligible to sign up for jobs at other GM sites.”