McClelland (2006) expounds on the implications of Delphi’s filing for bankruptcy and the ensuing termination of employees’ benefits plans. As part of chapter 11 section 1113 (b) and 1114 (f),Delphiis expected to open negotiations with UAW and GM and conduct them with good faith. Failure for UAW to impart a new collective agreement will only result to complete losses for employees. They will have to seek alternative solutions like approaching the pension benefit guaranty corp.
Among the plans of action open in resolving this problem is the use of arbitration. WhileDelphiforesees an impending outcome of bankruptcy due to the high labor costs, they should seek for arbitration in order to reformulate their labor organization. In using an arbitratorDelphi, GM and UAW would avoid costs and also cause the eventual resolution of the disputes. As pointed out in Twomey (2010, p.276) arbitration through the use of an impartial negotiator they would only need the courts when the arbitrator’s decision is challenged. It is the role of management to aid in reconstructing the company’s labor framework so as to fit various specifications. In doing so, they must also engage in negotiations with labor unions and request for the modification of the collective agreements. The redefinition of these agreements ensures that there is no cause for reproach through courts. However, followingDelphi’s filing for bankruptcy they must now work towards ensuring that the company gets back on its feet and this only can only happen through proper management.
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