Delphi indenture trustee appeals buyout supplement, IUE-CWA program approvals

By Caroline Salls

Pittsburgh, July 18 - Delphi Corp. indenture trustee Wilmington Trust Co. appealed an order approving a supplement to Delphi's employee buyout program with the United Auto Workers and General Motors Corp. and a program for IUE-CWA-represented employees, according to a Tuesday filing with the U.S. Bankruptcy Court for the Southern District of New York.

The court approved the buyout supplement and IUE-CWA program on July 7.

The supplemental program is for employees represented by the UAW. The IUE-CWA program is for hourly employees represented by the International Union of Electronic, Electrical, Salaried, Machine and Furniture Workers-Communications Workers of America.

As previously reported, the UAW supplement provides expanded options, which will provide UAW-represented employees with additional "soft landings" as the company implements its transformation plan.

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

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

Under the IUE-CWA program, eligible employees can retire with financial incentives through early retirement or through a pre-retirement program or accept lump sum buyout payments.

Employees who are eligible to retire under the normal or early voluntary provisions of the Delphi Hourly-Rate Employees Pension Plan will be eligible for a $35,000 one-time, lump-sum incentive payment in exchange for their agreement to retire. The incentive payment will be made by GM and will be retroactive to cover eligible employees who have retired since Oct. 1, 2005.

Employees aged 50 or older with 10 or more years of credited service who are eligible to retire under the mutually satisfactory retirement provisions of the pension plan can do so.

Employees with at least 26 and less than 30 years of credited service, regardless of age, will be eligible for special voluntary placement in a pre-retirement program.

Employees electing one of these options will be permitted to either retire from Delphi or transition to GM for purposes of retirement and receive other post-retirement benefits from GM as any other GM IUE-CWA retiree.

Any employees choosing the 26 to 30 years-of-service option will be considered Delphi employees until they retire.

On May 18, Wilmington Trust also appealed approval of the original employee buyout program.

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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