Packard head to seek US approval for new deal

THE president of Delphi Packard is to seek approval for an enhanced redundancy package for the 800 workers being made redundant…

THE president of Delphi Packard is to seek approval for an enhanced redundancy package for the 800 workers being made redundant at the company's Irish plant in Tallaght, Co Dublin.

Shop stewards representing the workforce have targeted Opel cars and other products of General Motors, which owns Delphi Packard, in a campaign to seek improved terms.

Last night the Minister of State at the Department of Enterprise and Employment, Mr Pat Rabbitte, said he had received a letter from Mr J.T. Battenberg III, asking for assistance in beginning new redundancy talks. Last week the Packard unions met Mr Rabbitte and asked him to intervene once more with the company on their behalf.

This was after the company rejected a Labour Court recommendation that would have increased the cost of the redundancy package for the Tallaght workforce by £2 million, or 15 per cent. The company said, in rejecting the Labour Court recommendation, that its offer was already considerably in excess of statutory requirements.

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Responding to Mr Rabbitte, Mr Battenberg said in his letters that he had authorised our representatives in Ireland to engage in further discussions in the light of the Labour Court's findings.

As you are aware Delphi Packard's existing proposal is at the limit authorised locally, and it will be necessary for me to secure approval here in the US for any potential enhancement of that offer."

I would respectfully request the continued assistance of your ministry in facilitating local discussions which might result in proposals which would bring this matter to a swift, reasonable and amicable resolution and which would establish a positive rather than a negative environment for any future involvement by GM in economic development in Ireland."

Mr Rabbitte described the letter as "a hopeful ray of light" and an indicator that new negotiations based on an enhanced offer could succeed.