Delphi reports 85% of eligible employees opt for retirement package

By Jennifer Lanning Drey

Eugene, Ore., Sept. 26 - Delphi Corp. reported that approximately 12,400, or 85%, of its retirement-eligible UAW employees have elected to retire by Jan. 1, 2007 under the company's hourly special attrition plan or hourly special supplemental attrition plan.

Approximately 1,400 employees have elected the buyout option, according to a company news release.

Certain eligible U.S. employees accepted a lump sum of $35,000; others elected buyout packages ranging from $40,000 to $140,000, according to the release.

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.

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

Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy on Oct. 8, 2005. Its Chapter 11 case number is 05-44481.

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