- Jan 7, 2002
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DETROIT Oct 6, 2005 ? Delphi Corp. is asking the United Auto Workers union for wage cuts of more than 50 percent and wants to eliminate pay for laid-off workers as part of the auto supplier's effort to stave off bankruptcy, according to a letter from UAW leaders.
Delphi wants to cut wages from $27 an hour to $10-$12 an hour and eliminate a jobs bank that gives full pay to 4,000 laid-off workers, officials from UAW Local 292 in Kokomo, Ind. said in the letter, which was posted Thursday on a union Web site. Delphi has about 25,000 UAW-represented workers.
Delphi also wants to reduce health care benefits and vacation time for its hourly workers as part of a restructuring deal, the letter said. The company also wants the right to close or consolidate plants.
"It is clear that in one form or another, there is a restructuring of Delphi forthcoming and it will have a dramatic impact on UAW members," the letter said.
A Delphi spokeswoman has declined to comment on the company's negotiations with General Motors Corp. and the UAW.
Troy-based Delphi has threatened to declare bankruptcy by Oct. 17 if it fails to reach an agreement with GM and the UAW to reduce its labor costs. U.S. bankruptcy laws are scheduled to change on that date, and Delphi has said the changes will make bankruptcy more difficult.
http://www.detnews.com/2005/autosinsider/0510/07/A01-340904.htm
Delphi wants to cut wages from $27 an hour to $10-$12 an hour and eliminate a jobs bank that gives full pay to 4,000 laid-off workers, officials from UAW Local 292 in Kokomo, Ind. said in the letter, which was posted Thursday on a union Web site. Delphi has about 25,000 UAW-represented workers.
Delphi also wants to reduce health care benefits and vacation time for its hourly workers as part of a restructuring deal, the letter said. The company also wants the right to close or consolidate plants.
"It is clear that in one form or another, there is a restructuring of Delphi forthcoming and it will have a dramatic impact on UAW members," the letter said.
A Delphi spokeswoman has declined to comment on the company's negotiations with General Motors Corp. and the UAW.
Troy-based Delphi has threatened to declare bankruptcy by Oct. 17 if it fails to reach an agreement with GM and the UAW to reduce its labor costs. U.S. bankruptcy laws are scheduled to change on that date, and Delphi has said the changes will make bankruptcy more difficult.
http://www.detnews.com/2005/autosinsider/0510/07/A01-340904.htm