UAW agrees to 'two-tier' suppliers pact

[United Press International]

DETROIT, April 30 (UPI) -- The United Auto Workers have
reached agreement on a 7-year contract with parts suppliers Visteon
and Delphi that will pay future employees less.
The historic pact signals a change in union strategy to
preserve pay and of benefits of current members while accepting
lower pay and benefits for new hires. The UAW historically rejected
so-called "two-tier" contract proposals, the Detroit News said.
The supplemental contract takes effect May 3. Rank and file
members do not get to vote on the pact setting future starting pay
at the two largest auto parts suppliers at $14 a hour. UAW members
at Visteon and Delphi currently average $24 an hour.
New hires will receive healthcare benefits but pay larger
deductibles and higher prescription drug co-pays.
In return for the agreements, the parts makers agreed not
close any U.S. plants until 2011 without union approval. Visteon and
Delphi once were the parts operations of Ford and General Motors.
Delphi has cut 15,000 union jobs since it was divested by GM.