Delphi reaches tentative agreement with four unions; GM

By Reshmi Basu

New York, Aug. 6 - Delphi Corp. said Monday that it reached a tentative settlement with four more unions.

Delphi signed a memorandum of understanding with the International Union of Electrical Workers-Communications Workers of America, the International Association of Machinists, the International Brotherhood of Electrical Workers and the International Union of Operating Engineers as well as General Motors Corp., according to a company news release.

The agreements cover workforce transition, pension and other issues, the company said.

"This series of tentative labor agreements demonstrates Delphi's continued commitment to achieving a consensual resolution with all parties in its Chapter 11 cases," chief restructuring officer John Sheehan noted in the release. "We believe these agreements, if ratified, provide additional traction toward our emergence."

The company also said it would not disclose details on the agreements until the unions voted on them.

A status hearing regarding union negotiations will be held on Aug. 9 before judge Robert D. Drain of the U.S. Bankruptcy Court for the Southern District of New York.

Meanwhile a status hearing with the debtors, the official committee of equity holders and relevant parties will be held on Aug. 16.

On Aug. 2, Delphi obtained court approval of its investment plan, which is headed by lead investor Appaloosa Management LP. The investors would inject Delphi with $2.55 billion in exchange for preferred and common stock in the reorganized company.

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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