Delphi Corp. said March 22 it had reached an agreement on an early retirement plan with the United Auto Workers (UAW). Delphi said the agreement covered up to 13,000 hourly workers, with eligible union members in line for a lump sum of $35,000 to take early retirement.
About 5,000 would be offered jobs with GM, which would cover the lump sum payments. When it spun off Delphi in 1999, GM remained liable for pension and healthcare costs for the auto division's union members worth up to $11 billion.
In a statement, Delphi said it would pursue talks with the UAW on a comprehensive restructuring plan also covering wage cuts and pension benefits in a bid to reach agreement by March 30.
"We remain focused on the transformation of Delphi in order to emerge successfully from the Chapter 11 reorganization process and provide a strong foundation for our future," Delphi chief operating officer Rodney O'Neal said.
"An accelerated attrition plan will help enable the transformation of our U.S. manufacturing and support operations into a much more competitive cost base," O'Neal said.
Copyright Agence France-Presse, 2006