By Joe Olenick<br><a href="mailto:joe.olenick@lockportjournal.com">E-mail Joe</a>
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.
