Delphi, UAW, GM agree to additions for employee buyout; rejection hearing postponed to further talks

By Caroline Salls

Pittsburgh, June 9 - Delphi Corp. said it has made significant progress in its discussions with the United Auto Workers and General Motors Corp., including a supplemental agreement with the UAW that expands existing retirement incentives and establishment of a buyout program, according to a company news release.

The company said it also achieved a framework for GM support on additional incentive attrition programs for its U.S. hourly workforce.

According to the release, the current UAW special attrition program for retirement-eligible employees, which covered employees with 27 to 30 years of credited service, will expand to include a pre-retirement program for employees with 26 years of credited service and provide buyouts for UAW- represented hourly employees.

This includes $140,000 for employees with the greater of more than 10-years seniority or credited service; $70,000 for employees with less than 10-years seniority and pro-rated payments for non-traditional employees.

The new options will be funded by financial support from GM.

Delphi said it is continuing framework discussions with the IUE-CWA, USW and other unions to offer similar attrition programs for their members, allowing Delphi to more rapidly transform its U.S. manufacturing operations and soften the economic impact upon the hourly workforce.

In light of this progress, Delphi said the U.S. Bankruptcy Court for the Southern District of New York adjourned hearings on its collective bargaining agreement motion until Aug. 11 to allow the company, its unions and GM additional time to fully focus on reaching comprehensive consensual agreements.

The court also postponed a hearing seeking cancellation of some commercial contracts with GM until at least Aug. 11. That hearing is scheduled to begin following the resolution or completion of the rejection hearings.

"The court has advised the parties to continue efforts for a consensual resolution of the issues and work diligently toward an agreement outside of court," chief restructuring officer John Sheehan said in the release.

"We remain committed to that outcome, and believe there is sufficient framework and understanding between the parties to enable further progress in negotiations during the recess period."

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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