Published: June 03, 2006 05:15 pm            

A new look for GM, Delphi

Attrition program and cuts will change the face of both

General Motors Corp. announced in November a goal of cutting its work force by 30,000 by the end of 2008.

Cuts also are in Delphi Corp.’s future. As the company works its way through bankruptcy proceedings, it has declared a goal of reducing employees by divesting or closing 21 of its 29 facilities and eliminating 8,500 salaried positions.

Both companies’ wishes will come true eventually through the attrition packages being offered and the ability of Delphi employees to flow back to their former parent company. Nearly 30,000 employees of the two companies have accepted attrition packages and the last day to sign up for one is still 19 days in the future.

The face of both companies will change, becoming leaner in numbers and the average age of employees will be considerably younger.

Yet, the biggest changes will come within the membership and leadership of the United Auto Workers.

At the international alone, the vice presidents representing GM, Chrysler Group and Ford Motor Co. will be retiring and will be replaced by elections at this month’s convention.

“Due to this attrition package, there will be a lot of locals, both at GM and Delphi, whose leadership — executive board and negotiating — will be leaving,” UAW Local 292 Shop Chairman George Anthony said this week. “Hopefully, they will have some people in place at the reins to do what needs to be done.

“This is going to be really tough at the national and local levels.”

Let’s use Local 292 as an example of what is going to occur.

By this time next year, the majority of Local 292 membership could be people with less than a year of seniority.

The local has 2,200 members. If 1,100 take an attrition package and 500 return to GM, that leaves 600 members left who are on the union’s rolls today. To conduct operations locally, it’s believed Delphi will need to bring in 800 people as replacements.

“That’s going to leave this local in a hurt,” Anthony said.

Anthony himself could leave today. A member of the bargaining unit since 1984, he has 43 years of seniority, but the shop chairman won’t leave before a new local agreement is negotiated. That could come as late as September 2007.

“When this is settled through the courts and the bargaining tables, we’ll have a new national agreement. That will force us locally to negotiate a new local agreement,” he said. “I definitely want to be involved in contract negotiations here at the local. I don’t want to let the membership down and leave it at the hands of someone not as familiar with it as I am. I want to be here for that.”

And, if the remaining members of 292 realize how things will turn in the next few months, they’ll want Anthony there for them. Of the four zone committeemen on the shop committee with Anthony, he believes three will accept an attrition package while the fourth will flow to GM.

“On the executive board, there are 11 people and the majority will take one of the packages and the others will probably flow back to GM,” Anthony said. “I have really tried to get as many of the younger seniority people involved in union business as possible.

“I’ve put a few in appointed positions who are very sharp and doing an excellent job. But, doing those kinds of jobs compared to contract negotiations and local contract language are two different things. Hopefully enough will be interested and educated enough to follow through [in the future].”

It’s easy to point out what’s wrong; resolving the issue is the hard part of bargaining, he said.

“We have a lot who talk big but you have to understand the processes of the UAW and how to get things done within the organization. Not many people know that who will be left a year from now,” Anthony explained.

A strike, he says, is the easiest way to settle an issue, but it won’t really resolve that issue.

“You can’t always resolve issues 100 percent in favor of your membership. You have to resolve so it favors the membership and helps the business,” Anthony explained. “If the business fails, there are no jobs at all.

“That is why we’ve always said striking a company is the last option the union has because it hurts the company and it hurts the union membership. It hurts the communities and the local businesses. That’s the last option.”

Competition and technology have changed the face of the auto industry over the last 20 or so years. In the “glory days,” GM owned 50 percent of the U.S. market share. That’s been cut in half.

And that leads to why GM, Delphi and others must reduce work forces.

The days of stick-lead lines with 50 people are over, Anthony noted.

To remain competitive in the marketplace, companies must keep up with advances in technology. One machine, operated by six people, can do the same job those 50 people did, but 100 times faster.

“It increases productivity and is more profitable for the business. But, if the company doesn’t go with the technology, then it loses the product lines to companies who purchase the capital equipment,” Anthony said.

“Unfortunately, technology reduces the headcount on the production floor.”

John Dempsey is the Tribune’s business writer and may be contacted at (765) 854-6739 or by e-mail at john.dempsey@kokomotribune.com

        

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