United Auto Workers (UAW)

IIPM-Publications

After the turnaround expert Robert Steve Miller joined as Delphi’s CEO in July 2005, it looked like he would convince GM and the United Auto Workers (UAW) Union for restructuring. However, after talks failed, bankruptcy was the only option. In March 2006, UAW members of Delphi have authorised a strike against Delphi, since it asked for a legal injunction to enable it to cut wages. Though bankruptcy will give it temporary respite, Delphi’s future depends on the efficacy of restructuring plans. Its decision to ask GM for a guaranteed business of $1 billion every month might support it in the short term. However, Delphi will have to engage in more tie ups in Asia to reduce its high dependence on Detroit, if it hopes for a turnaround.

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Source IIPM-Editorial,2006