Delphi, GM, UAW Reach Agreement on Buyout

Filed under:
News
on 03/22/2006

Source: Automotoportal.com

Auto supplier Delphi Corp. said Wednesday that it has reached an agreement with General Motors Corp. and the United Auto Workers to buy out thousands of hourly workers.

The plan, which is subject to approval by a bankruptcy court, allows up to 5,000 workers to return to GM, Delphi's former parent company. Up to 13,000 U.S. hourly workers also will be eligible for a lump sum payment of up to $35,000 to retire.

Under the plan, GM would pay for the buyouts and would assume some post-retirement benefits for Delphi employees who go back to work for GM.

Delphi filed for bankruptcy in October. The Troy-based company is the largest U.S. auto supplier and is GM's major supplier.

"We remain focused on the transformation of Delphi in order to emerge successfully from the Chapter 11 reorganization process and provide a strong foundation for our future," Delphi President and Chief Operating Officer Rodney O'Neal said in a statement.

"An accelerated attrition plan will help enable the transformation of our U.S. manufacturing and support operations into a much more competitive cost base," he said.