UAW taking 'next step' in Delphi dispute-president

By Poornima Gupta

AUBURN HILLS, Mich., April 18 (Reuters) - The United Auto Workers union is taking "the next step" in a contracts dispute with bankrupt auto parts maker Delphi Corp. (DPHIQ.PK), UAW President Ron Gettelfinger said on Wednesday.

"We are moving forward internally, because this thing has gone on long enough and people have taken advantage of the situation," Gettelfinger told reporters after a Chrysler Group announcement on investments in Michigan plants. "We are ready to move forward."

Gettelfinger declined to elaborate on what steps the UAW might be planning to take, though union informational meetings scheduled in April for Delphi's UAW-represented workers have prompted speculation the UAW may be preparing for a strike.

Gettelfinger declined to respond to a specific question about a strike. The UAW is the largest union representative of Delphi hourly workers in the United States.

Delphi spokesman Lindsey Williams declined to comment on Gettelfinger's remarks.

A strike at Delphi plants likely would cause disruptions quickly at Delphi and its former parent General Motors Corp. GM.N, which remains its biggest customer.

"We are taking the next step in the process," Gettelfinger said, when reporters specifically asked him about the meetings scheduled with the local units.

UAW officials in late March said they had rejected as "pathetic" a contract proposal from Delphi and an investor group proposing a $3.4 billion equity infusion to support the parts maker's emergence from bankruptcy.

The investment proposal is contingent on Delphi reaching agreements with its unions and GM on issues ranging from wages and benefits, to potential plant sales and closings, to GM commitments for future business with Delphi.

The investor group led by Cerberus Capital Management LP and Appaloosa Management LP would take a controlling stake in a reorganized Delphi and must sign off on agreements.

"I am very concerned about equity companies moving more and more into the industry, they are hovering overhead right now," said Gettelfinger, who has said the UAW would like to see DaimlerChrysler AG DCX.NDCXGn.DE retain Chrysler Group.

The UAW planned a meeting for local members who work at a Delphi plant in Flint, Michigan, on Wednesday to discuss the union's talks with Delphi and the investor group. Other meetings are planned for later in April.

(Additional reporting by David Bailey in Chicago)

((Reporting by Poornima Gupta; writing by David Bailey; editing by Deborah Cohen; Reuters Messaging: poornima.gupta.reuters.com@reuters.net; email: poornima.gupta@reuters.com; tel:313-967-1901)) Keywords: DELPHI LABOR/

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