By Mark Scott
Lockport, NY – Delphi's Lockport plant will likely remain open.
Under a strategic plan for emerging from bankruptcy released Friday, the automotive parts-maker says its plants in Lockport and Rochester have been identified as "core" facilities. Delphi plans to close or sell 21 of its 29 US plants.
Congressman Tom Reynolds says he talked with Delphi CEO Steve Miller by phone Friday morning. Reynolds says he was told the plant's dedicated workforce, the availability of low-cost electricity and other state incentives are the primary reasons for keeping Lockport open. He describes this as a "tremendous relief" to the region. But Art Wheaton of Cornell University's School of Industrial and Labor Relations says Lockport's future won't be secured until all of Delphi's fiscal issues are resolved.
"It's absolutely good news that Delphi is continuing to define Lockport as one of its core plants," Wheaton said. "But that doesn't mean any of the UAW contracts will be agreed upon for the conditions they require for that plant to stay open."
Delphi is asking bankruptcy court to void its employees contracts. The company says it needs to lower employee wages and benefits for it to compete globally.
Auto industry analysts say that move carries huge risks -- including the possibility of a strike by unionized workers at Delphi that could cripple the US auto industry.