Delphi withdraws proposal to unions, will work toward restructuring agreement with GM, unions

By Caroline Salls

Pittsburgh, Dec. 19 - Delphi Corp. withdrew a proposal made to its unions on Nov. 15 in light of General Motors Corp.'s recent engagement and discussions with the United Auto Workers, according to a company news release.

Delphi also agreed to put off any motions to reject or terminate collective bargaining agreements until at least Feb. 17.

It noted that the original proposal was based "solely on Delphi's financial constraints."

The company said it reaffirmed its commitment to reach a consensual agreement with General Motors and its unions on a comprehensive restructuring.

Delphi said it would continue to work toward creating effective solutions acceptable to the company and its stakeholders, as well as to the UAW, GM and other unions.

The company said its primary short-term focus is to reach consensual agreements enabling competitiveness for Delphi's core U.S. operations, by modifying current labor agreements and realigning Delphi's global product portfolio and manufacturing footprint to preserve the company's core business.

According to the release, the consensual agreements will help preserve the value of the company, provide viable jobs in the United States and better serve customers globally.

Delphi, a Troy, Mich.-based automotive electronics manufacturer, filed for bankruptcy Oct. 8 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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