CAP Conference Day 3 Report
By UAW Region 8 Webmaster John Davis

Day Three of the UAW International CAP Conference was another full slate of activities and educational material for the delegates. The schedule for the day included informational sessions in the morning and visits to Capital Hill to lobby in the afternoon.

The funeral of Coretta Scott King resulted in some guest speakers having to shuffle their schedule to appear. The conference began with an update from Vice-President Shoemaker on the situation at Delphi.

Vice-President Shoemaker
“The automotive market has been hit hard by the slowing of the economy and the component sector has been hit the hardest. Many UAW represented companies filed bankruptcy last year, including Collins & Aikman, Tower and Delphi, the world’s largest component manufacturer.
In July of last year Delphi hired Steve Miller to replace J.T. Battenberg who had ran the company since the spin off from GM back in 1998. Right away he began talking about needing concessions to survive. He soon became the voice for corporate America leading the charge of using bankruptcy as a management tool. In October Delphi filed for bankruptcy and began working toward changing our agreement.

There are 33,000 union members at Delphi, represented by six different unions. The UAW has the greatest number, with 24,000 of those 33,000. One day prior to filing bankruptcy, Miller proposed an executive compensation plan that would reward the group at the top with over $88,000,000. This is the same management team that made the decisions that placed Delphi in bankruptcy.

Miller’s first contract proposal was for wages at $9.50 an hour. At this rate, a family of four would barely be above the poverty line living off a Delphi paycheck. The next proposal raised wages to 1$10.50 to $12.50 an hour. Miller added insult to this offer by telling the press that “plenty of people live off those wages.”

In December Delphi withdrew the last offer off the table and extended the deadline they had sat to reach a new agreement. At the time Miller suggested that was the result of negotiations that had been going on. However, at the time there had been very little official talks between us and those talks had produced few results.

In the past three weeks talks have picked up, with Delphi seeming to be more interested in reaching an agreement. At this time I believe that Delphi management would like to find a resolution that all three parties can live with. But, without significant financial help from GM it is unlikely a settlement is going to be reached.

We have felt for some time that the only way a solution can be reached would be with all three parties at the table. While this is the most positive movement we have seen over the past two weeks, the sides are just too far apart at this time. The only thing we all can agree on is a strike would be difficult for everyone. The only real positive thing right now is that all three sides are at the table.

It is an understatement to say that bargaining with a bankrupt company is hard in good times, let alone during the current conditions. Whether we like it or not, the fact remains that both Delphi and GM are in trouble. It is not our fault, it is not the members fault, but never the less our membership is going to be impacted. We are trying to work with them, but we simply can’t do what Delphi is asking. We have to weigh our options. This includes protecting benefits, pensions and jobs for our active and retired workforce. Does this mean things will stay the same? Probably not, for we have to recognize the situation that Delphi and GM are in. But they have to remember their commitments to our membership as well.

Short of reaching a settlement, the judge will decide what to do. More than likely the judge will implement Delphi’s last offer. At this point it will be difficult to avoid a long strike. We have faced challenges before and we have to stick together. Bankruptcy has become a management tool for running companies these days and we need to point this out to our elected representatives on the Hill. Tell them how these companies have been abusing the bankruptcy laws to fit their needs. In closing, I would like to thank President Gettelfinger for his help and support. Most days Ron and I are the first two people in the office and this has been a difficult time. We appreciate your support as we continue to work this issue.”

Following Brother Shoemaker’s report a panel was held by Committee members in the Democratic Party. The panel covered strategies for the midterm elections this year and house and senate seats that are being targeted during this election cycle.

Next came Senator Evan Bayh from Indiana. Senator Bayh is a second generation lawmaker, with his father serving in the senate as well. The Senator also spent two terms as governor of Indiana prior to being elected to the senate.

“They say the strongest steel is tempered by the hottest fire,” Senator Bayh states. “Right now we are in a fight; a fight to take back our country. I don’t have to tell you, you know as well as anyone. You are fighting every day to hold on to the benefits you have won over years of collective bargaining.

I recently sent a letter to Delphi CEO Steve Miller and ask him how could be propose $500,000,000 in executive bonuses while asking workers to take 60% pay cuts? There ought to be a law against this practice. But, things such as this are going to happen as long as this city is as broken as it is today. We need leaders who will stand and fight for working people. In stead of counting red states and blue states, we need all states to be red, white and blue. Elections to matter; they matter a lot. I have two ten year old sons and I wonder what type of country they will inherit from us. Will it be a country for executives, by executives or one that is truly one nation under God for all?”

Following the senators remarks, delegate made their way to Capital Hill to discuss these issues with our elected officials.

The final day of the conference will begin tomorrow morning at 8:15AM, as another group of guest speakers address the conference and things come to a close.