Delphi talks continue with General Motors and UAW

General Motors Corp., Delphi Corp. and the United Auto Workers union returned to the bargaining table Monday amid media reports that a deal is at hand.

The Detroit News and Detroit Free Press reported Monday negotiators are close to reaching a deal. GM spokesman Jerry Dubrowski told the Associated Press the parties “won’t be announcing a comprehensive Delphi agreement soon.”

Delphi has delayed filing its year-end financial statement with the Securities and Exchange Commission until negotiations conclude.

David Cole, chairman of Center for Automotive Research in Ann Arbor, Mich., told the Tribune it’s likely a deal will be announced by the end of Tuesday.

“I think an agreement is imminent,” said Cole, who has a source close to the negotiations. “I’m not sure it’s the end of all deals here, but I think they’ve made terrific progress.”

Jim Hall, a Michigan-based analyst for AutoPacific, said it’s irresponsible to speculate about details of closed-door discussions.

“This is a classic example of no one knows,” he said. “There will be lots of noise, but I think it will be quiet from a standpoint of real information.”

Hall said none of the three parties wants to weaken its bargaining position by discussing specifics.

Troy, Mich.-based Delphi spun off of GM in 1999.

Negotiators are discussing a plan to offer retirement packages to tens of thousands of hourly workers at GM and Delphi, according to the Detroit newspapers.

The retirements would allow Delphi workers to “flow back” into GM, and allow GM to move workers out of its “jobs bank” where hourly workers are paid nearly full wages and benefits when their plant has idled or closed.

The Detroit News reported the flowback of Delphi workers to GM is the main hurdle remaining for negotiators.

Cole said the union contract limits to 50 miles how far a worker can drive to a new facility. If the distance is further, the company will likely have to pay moving expenses and related costs.

Delphi filed for Chapter 11 bankruptcy Oct. 8, citing globally uncompetitive costs. The supplier could file to throw out its collective bargaining agreements March 31 if an agreement isn’t reached.

Cole said progress in talks shows a willingness of the UAW and other unions to cooperate in what has become “a change or die situation.”

Although Delphi must reduce the number of workers and their average wage, Kokomo’s Delphi operations should fare comparatively well because of the importance of its high-tech products, Cole said.

GM’s recent announcement that added $2 billion to its 2005 losses represents a refined view of its Delphi liabilities, Cole said.

“They have a better understanding,” he said. “We knew things were coming together and that they had a more accurate cost for what their buyouts were going to be.”

The Associated Press contributed to this report.