The Delphi UAW strike of 1996
On March 5, 1996 3,000 workers at two Delphi Chassis Systems plants in Dayton launched what quickly became the most far-reaching strike against GM in 26 years.Within days other GM plants began shutting down for lack of brake parts made only in Dayton
The strike lasted 17 days. By the time a settlement was reached GM had closed 26 of its 29 North American assembly plants and sent home more than 177,000 workers.
Background on the strike:
The union: United Auto Workers Local 696, led by President Joe Hasenjager. The local had struck GM twice before, in October 1991 and again in March 1994.The company: Delphi Chassis Systems was founded in 1909 by Dayton inventor Charles F. Kettering as "Dayton Engineering Laboratories Co," the original Delco. The company's relationship to GM dates back to 1916 and for decades it has been the chief source of brake components for nearly all GM vehicles. In 1995 the Delco name was changed to Delphi, in part to reflect a change in corporate philosophy at GM. In March 1996 when the strike began, Delphi employed 19,400 worldwide, about half of them in the Dayton area. Local Delphi plants are in Kettering, Vandalia and Dayton. The two involved in the strike are at Needmore Road and Wisconsin Blvd in Dayton.
The issues: Job security and "outsourcing," or shifting production to other companies. GM wanted to make itself less dependent on its own parts plants. According to the company's philosophy, Delphi Chassis was to be a separate entity from the parent corporation, competing with others for GM business while taking on new business supplying other automakers. (more)
Impact:By the time it was over, GM had stopped production at 26 of 29 assembly plants in North America, idling 177,000 out of 325,000 GM employees.
The Dayton strike had such rapid impact because of two factors: (1) virtually every brake component used in GM vehicles is made at the two Delph plants; and (2) GM was following a "just in time" method in supplying its assembly plants.
Analysts estimated the strike cost GM more than $500 million in lost production, or 210,000 vehicles not built. However, they said GM inventories were high before the strike and GM could recoup much of the losses during the rest of the year.
Terms of the agreement | Chronology |
Sources:
Most of the stories below were written by DDN business writer Todd R. Wallack. Jim Dillon, Kevin Lamb, Tom Beyerlein and James Cummings also contributed to the coverage.
File created: 3-15-96
Updated: 3-22-96
| DDN 2-14-95 | Delco becomes Delphi |
| DDN 3-6-96 -- | "3,000 strike GM; union cites job promises, outsourcing" |
| DDN 3-7-96 -- | "Analysts say strike at GM will be short" |
| DDN 3-10-96 -- | "Moraine Assembly closes; 4,000 idled" |
| DDN 3-10-96 -- | "Issues in Dayton's GM strike listed" |
| DDN 3-10-96 -- | "UAW wants muscle, but GM says flexibility, competition is key." |
| DDN 3-10-96 -- | "Delphi strike idles a 10th GM factory" |
| DDN 3-13-96 -- | "Strike cripples 54 plants; bottom line not being hurt" |
| DDN 3-13-96 -- | "Local 696 president confident" |
| DDN 3-17-96 -- | "GM strategy at risk; strike imperils plan for Delphi's independence" |
| DDN 3-21-96 -- | "GM's hard line stance a harbinger; Dayton sets tone for national talks" |
| DDN 3-22-96 -- | "After 17 day a deal; UAW leaders predict approval today" |
| DDN 3-22-96 -- | "Strike chronology" |
| DDN 3-22-96 -- | "Local may energize labor nationwide" |