June 23, 2007 (LPAC)--Over two-thirds of voting United Auto Workers union members chose to sacrifice the future of the union for short-term survival when they ratified the new Delphi labor contract yesterday. Whereas, highly-skilled, long-time workers now make $27 per hour, under the new contract, entry-level job salaries will be slashed to $14 per hour, with an upper level of $18.50. In return, four factories will be kept open by Delphi for the present, and GM will subsidize senior worker salaries to cushion the blow.

The Delphi contract included closing 10 plants of the 21 covered by Delphi; seven will be sold off, and four will be kept under Delphi's name. Long-time workers, who used to work for GM before Delphi was spun off in 1999, will be offered (by GM) $105,000 over three years in compensation for taking $10 less per hour. They also have the option to move to GM jobs if and when they become available.

This vote marks the latest low point in a situation created by the refusal of Congress to act over the past three years, to intervene to save and expand the manufacturing base of the United States, embodied in the auto/machine tool industry. Now it is being radically degraded.