Delphi has UAW, GM deal

Delphi said talks are continuing with the IUE.
STAFF/WIRE REPORTS
DETROIT -- Delphi Corp. said Friday it has reached a deal with the United Auto Workers and General Motors Corp. to offer buyouts to hourly employees who aren't eligible for early retirement.
The automotive parts supplier said it also was expanding its previously announced early-retirement incentives to include more workers.
Delphi called the arrangement with GM a framework for support of the buyout programs but didn't offer specifics. GM has said it has financial commitments to Delphi workers stemming from the time it spun off Delphi as an independent company.
The parts company is GM's largest supplier and has sought Chapter 11 bankruptcy protection.
Delphi also said it is continuing "framework discussions" with its other unions, including the International Union of Electrical Workers, which represents about 3,800 Delphi workers in the Mahoning Valley.
Concessions wanted
Delphi also wants its unions to accept lower wages and benefits, but no agreements have been reached.
The UAW is the only union that has a buyout agreement with the company.
Delphi's previous agreement with the UAW offered retirement incentives for workers with 27 to 30 years of service. The new agreement expands a pre-retirement option to include workers with 26 years of service.
Workers with more than 10 years of service can receive buyouts worth $140,000; those with less than 10 years would receive $70,000 to sever ties with the company.
The buyouts could help Delphi avoid a strike, which would be crippling both to the supplier and to GM. The Troy-based company has asked a federal bankruptcy judge in New York for permission to void its union contracts so it can reduce wages.
UAW and IUE members overwhelmingly have authorized the union to call a strike if the court grants permission and Delphi takes such a step.
Settlement preferred
Both the company and union officials have said they prefer a negotiated settlement to any court action. Buyouts are seen as a way to provide a "soft landing" for more Delphi workers and thus ease wage negotiations.
Bankruptcy Judge Robert Drain in New York adjourned a hearing on Delphi's motion until Aug. 11 to allow the company more time to work out a deal with the unions and GM.