Delphi: 83% of eligible workers elect attrition option under special buyout plan

By Caroline Salls

Pittsburgh, Aug. 18 - Delphi Corp. said about 6,300 of its employees, representing roughly 83% of the company's eligible IUE-CWA workforce, elected an attrition option within the special hourly buyout program with General Motors Corp., according to a company news release.

The program included incentivized and early retirements, along with pre-retirement opportunities and buyouts for eligible employees.

As previously reported, GM has agreed to provide financial support under the plan.

According to the release, about 7,500 U.S. hourly employees represented by the IUE-CWA were eligible for the buyout program, with about 3,200 of those employees eligible to participate in the retirement and pre-retirement program.

Some eligible U.S. hourly employees accepted a lump sum incentive of $35,000 to retire, while other eligible employees elected buyout packages ranging from $40,000 to $140,000.

Under the proposed program, GM has agreed to assume the financial obligations related to the lump sum payments to be made to eligible Delphi U.S. hourly employees accepting normal or voluntary retirement incentives.

Additionally, GM will fund some post-retirement employee benefit obligations related to Delphi employees who transition to GM under the plan for retirement purposes, as well as half of employee buyout costs.

Delphi said the program further enables the transformation of its U.S. manufacturing operations to a reduced labor cost structure.

"The IUE-CWA leadership is to be commended for their efforts to provide options for their membership as Delphi aligns its staffing levels to provide a stronger framework for successful emergence from Chapter 11," Delphi president and chief operating officer Rodney O'Neal said in the release.

"The strong participation in the attrition program strengthens our ability to more rapidly transform our U.S. manufacturing operations."

Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy on Oct. 8, 2005 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 05-44481.

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