The UAW told Delphi, the bankrupt car parts company, to take a hike. The labor contract offer from Delphi was so poor that they union will not even offer a counter proposal.
According to Reuters: "The rejection of the proposal to UAW jeopardizes the reorganization plan offered by a group led by Cerberus Capital Management LP and Appaloosa Management LP. It is contingent on Delphi reaching final agreements with its unions and GM and would give the investor group a controlling stake in the reorganized company."
It is time for the UAW to call a strike. The union is sick of losing jobs and benefits. The rank and file want the union officers sacked it they cannot halt the attrition in the UAW’s power base. And, the UAW does not see private equity coming into the car industry as a positive. They view the financial guys as buzzards dropping by to pick the bones of the dying US car industry.
The UAW’s stance on Delphi is a sign of things to come. It Daimler (DCX) wants to sell Chrysler to private equity, the union plans to stand in the way. The fate of the entire union and tens of thousands of its members is at stake. Private equity is going to want worker concessions if it is going to put up money to buy the US unit of the German company.
Better to live like a man than die like a dog.
Douglas A. McIntyre
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