So it might be springtime in the rest of the country, but it's still winter in Detroit.
The soft grumblings of discontent at bankrupt Delphi has all the makings of a major corporate disaster. We might be in the calm before the storm.
Delphi, the major parts maker for General Motors, just filed a legal brief with the bankruptcy court last week, asking for permission to violate their contract with the United Auto Workers. If the court approves, Delphi will impose major pay cuts, will lay off hundreds of workers, and will slash benefits like health care and pensions.
The UAW president has recently said that a strike will happen if the court allows Delphi to impose its terms. Alternatively, the UAW and Delphi could come to a new compromise in an attempt to avoid a strike. There are rumors that, even if UAW leadership reaches an agreement, the workers will almost certainly go out on strike if they have to give up their hard earned pensions and health care coverage. I personally know two people who work for Delphi, and they've both seen this day coming for a long time. They're ready to fight if they need to.
A strike at Delphi would shut down GM within a few days. The broad effects that a shutdown of one of the world's largest companies would make a noticeable dent on the US and the global economy. While it's hard to predict the future, such a strike would likely be met with harsh resistence from GM and Delphi in an attempt to finally and decisively break the UAW.
Here's hoping that the UAW and Delphi succeed in negotiations and avoid this mutually assured destruction. And we'll have another spring in Detroit.







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