Talks turn to GM's taking retiree costs

DETROIT FREE PRESS
DETROIT -- Many of the thousands of Delphi Corp. workers who are expected to return to General Motors Corp. in a deal under negotiation with the UAW could work at the automaker for a few days or weeks and then retire with a GM pension and retirement benefits, according to people familiar with the talks.
GM, the UAW and Delphi continued to talk Monday after meeting through the weekend and discussed the deal that would encourage tens of thousands of hourly workers to retire from both companies.
If the workers retire from GM, the automaker would foot their bills for benefits. Workers could be persuaded that their benefits are more secure by retiring from GM rather than Delphi, which filed for bankruptcy.
The massive job-cutting effort is designed to cut the automaker's work force and create some openings for Delphi workers to move back to GM, the former owner of the parts supplier, people familiar with the talks said Monday.
Eligible to retire
Delphi filed for Chapter 11 bankruptcy protection Oct. 8. It has about 6,000 UAW workers who are eligible to retire, because they worked for the parts supplier and the carmaker for 30 years or because they are older than 65.
They could be encouraged to retire with an incentive package from GM, but many don't want to move to another city or state, local union leaders said.
"Many have no interest in moving," the president of one UAW local said. He declined to be identified for fear of retribution from the union. "Those who want to move have already left," he said, referring to Delphi workers who returned to jobs at GM in the past.
Many workers who transfer to GM wouldn't have to uproot their families. They could work at GM for a minimum amount of time, a day or a few weeks, and then retire.
GM is playing a part in the talks because it depends on Delphi for parts and is potentially liable for up to $12 billion in pension and retirement health care and other benefits for Delphi workers. That was part of its agreement with the UAW to spin off Delphi as a separate company in 1999.
COPYRIGHT 2006 ASSOCIATED PRESS. ALL RIGHTS RESERVED. THIS MATERIAL MAY NOT BE PUBLISHED, BROADCAST, REWRITTEN, OR REDISTRIBUTED.