Delphi Corp. announced June 9 significant progress in its discussions with the UAW and General Motors Corp., including a supplemental agreement with the UAW that expands existing retirement incentives and establishes a buyout program. The company achieved a framework for GM support on additional incentive attrition programs for its
The current UAW special attrition program for retirement-eligible employees, which covered employees with 27 to 30 years of credited service, assuming court approval, will expand to include a pre-retirement program for employees with 26 years of credited service and provide buyouts for UAW-represented hourly employees: $140,000 for employees with more than 10 years seniority or credited service, whichever is greater; $70,000 for employees with less than 10 years seniority and pro-rated payments for non-traditional employees. The new options added to the special attrition program are enabled by financial support from GM.
Delphi continues framework discussions with the IUE-CWA, USW and other unions to offer, with GM support, 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 the recent progress, the U.S. Bankruptcy Court for the Southern District of New York, on June 9 adjourned hearings on
Orders authorizing the adjournment are expected to be docketed by the court early next week. The court also rescheduled
"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," said Delphi chief restructuring officer John Sheehan. "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."
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