With a future as cloudy as the weather Wednesday morning, Delphi Thermal Systems has a supporter who understands the challenges the plant is facing.
U.S. Rep. Chris Lee, R-Clarence visited the Delphi facility on Upper Mountain Road Wednesday to tour the plant and meet with management and workers, alike. Citing his background in manufacturing, Lee said he understood the challenges the plant is facing and came to discuss the concerns of the employees.
“I want to shed some light on the issues facing Delphi,” Lee said. “And do whatever I can to help.”
Lee also said he supported the tentative deal announced last week between General Motors and the United Auto Workers union. While the full impact is unknown right now, the deal could be beneficial to Delphi Thermal workers and retirees, Lee said. The deal calls for a $2.5 billion note that would fund a trust that will take over retiree health care costs.
“If you look strictly at Delphi’s pension issue, they’ve got a $5 billion dollar unfunded pension liability,” Lee said. “And if you look at General Motors’ pension liability, theirs is 95 percent funded. It’s in a much better situation.”
While speaking to the workers inside the plant, Lee said there was concern. During his time in office, a number of retirees have contacted Lee asking what could happen to their benefits.
In the past nine months, Lee has visited Delphi three times and has been active on behalf of the auto industry. Last week, Lee sent a letter to the U.S. Treasury Department and President Barack Obama’s Automotive Task Force urging adoption of the tentative deal GM has struck with the United Auto Workers. UAW members are voting on the agreement this week.
Lee and Democratic Congressman Dan Maffei of Syracuse sent a previous letter to the task force, objecting to the mass closings of GM and Chrysler dealerships. The letter called for a more flexible and transparent process that would allow for a smarter consolidation of dealerships. Lee is also backing a bill, the Currency Reform for Fair Trade Act, that would close certain policy loopholes and end currency manipulation.
“What we can dictate is they have a currency that lets market forces drive it and not a government,” Lee said. “The Chinese yuan is basically undervalued by 30 to 40 percent. It puts their manufacturers at a severe advantage.”
Mayor Michael Tucker, a Delphi retiree with more than 30 years at the plant, wasn’t sure how to feel about the tentative deal between GM and the UAW.
“There’s a company here, Delphi, that’s been working hard to come out of bankruptcy for several years and now all of a sudden they’ll be taken over by a company possibly going in. I don’t know what to think about that,” Tucker said.
Delphi spun off from GM in 1999 as a separate parts company. In bankruptcy since 2005, Delphi faces a Tuesday deadline to submit an exit plan, while GM faces its own Monday deadline to either restructure or to declare bankruptcy. Most experts and analysts expect GM to declare bankruptcy.
Contact reporter Joe Olenick at 439-9222, ext. 6241.
Delphi
Related Photos
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U.S. Rep. Chris Lee, R-Clarence, talks about his tour Wednesday of Delphi Thermal Systems. Lee is backing some major bipartisan legislation that would combat Chinese trade practices he says have contributed to the loss of manufacturing. At left is Lockport Mayor Michael Tucker, a Delphi retiree with more than 30 years at the plant. JOE OLENICK/STAFF
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JOE OLENICK/STAFF
DELPHI: Lee vows to provide help, support to the company
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Still no answers for Delphi retirees
Twenty-two thousand Delphi Corp. retirees found out 16 months ago their pensions were being turned over to a federal agency. In July 2009, the Pension Benefit Guaranty Corp. took control of those pensions, which meant possible cuts of anywhere from 30 percent to 70 percent in the retirement plans.
Hourly employees faced the same situation, except General Motors agreed to top off those pensions. Salaried retirees did not have their pensions topped off by anyone.
Now they want to know why. Letters, testimonies and speeches have asked the U.S. Treasury Department, the department’s Auto Task Force and the Obama Administration for information on that decision was made. -
Delphi retirees group came together quickly
Salaried workers and retirees lost big chunks of their pensions in July 2009, and almost as quickly, the Delphi Salaried Retiree Association was formed.
The DSRA actually started forming when it was announced Delphi was eliminating health care and life insurance benefits for salaried retirees as of April 1, 2009. There are roughly 22,000 salaried Delphi retirees nationwide. - DELPHI: UAW supports salaried retirees' fight for pension equity The United Auto Workers are supporting Delphi salaried retirees who are fighting to save their pensions.
- DELPHI: Salaried retirees gain key support in fight against pension cuts Delphi Corp. salaried retirees and employees have gained a vote of support from some members of the U.S. House of Representatives.
- BUSINESS: Delphi emerges from bankruptcy
- DELPHI: Approval of bankruptcy exit plan hailed by local political leaders Local political leaders hailed as good news Thursday’s announcement about the approval of Delphi Corp.’s bankruptcy exit plan.
- BUSINESS: Delphi asking court for bid approval A hearing on Delphi Corp.’s plan to hand control of the company to its lenders and eventually end its nearly four-year stay in Chapter 11 got under way Wednesday in New York City with arguments from attorneys representing the auto supplier and some of those objecting to the plan.
- DELPHI: Auto parts maker in court today on bankruptcy exit plan Delphi Corp. will be in court today asking for approval of a modified plan that could end a four-year adventure in Chapter 11 bankruptcy.
- DELPHI: Creditors win in auction for company's assets Auto parts maker Delphi Corp. said Monday its creditors won out over a California private-equity firm in an auction for the company’s assets as it moves to emerge from bankruptcy protection.
- DELPHI: GM buy-back progresses; retiree benefits gain support Support has come for both General Motors’ plan to buy back Delphi plants and for Delphi’s salaried retirees.
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