Delphi, UAW reach buyout agreements; Strike still pending

NEW YORK — A bankruptcy judge has extended by six months the deadline for autoparts giant Delphi Corp. to exclusively file its reorganization plan.

That gives Delphi until Feb. 1, 2007, from Aug. 5, 2006 to file; and the date for responses from creditors with alternate proposals has been moved up to April 2, 2007.

The Troy, Mich.-based supplier filed for bankruptcy last October and plans to close 21 of 29 U.S. union plants as part of a broad restructuring.

New buyout deal won’t affect remaining workers’ decision to
strike if no settlement reached with Delphi: UAW

Meanwhile, the company has filed a motion seeking court approval of a new concessions deal with its second-largest union, the International Union of Electronic Workers-Communications Workers of America.

Delphi says it has reached an agreement with the IUE-CWA and General Motors to offer buyouts to about 8,000 hourly workers. GM, which spun off Delphi in 1999 and remains the supplier’s largest customer, has agreed to provide financial support under the proposal.

Under the plan, some workers may be offered a lump sum payment of $35,000 to retire, while eligible employees may decide to accept buyout packages ranging from $40,000 to $140,000.

The deal was similar to the one reached last week with the United Auto Workers, the largest union representing Delphi employees. About 25,000 GM workers and 8,500 Delphi workers had accepted buyouts.

As Today’s Trucking and other media have reported in recent months, the UAW has been threatening a massive strike if Delphi forges on with plans to void some its current contracts with the union and dramatically cut wages of the remaining 12,000-plus workers as part of the restructuring plan.

At the union’s recent convention, UAW President Ron Gettelfinger would not say if the latest buyout deal would pave the way for a negotiated settlement with Delphi that would avoid a devastating work stoppage.

Auto industry experts have told Today’s Trucking that a long strike could have a ripple effect across the sector and related markets, effectively crippling GM, and hurting other dependant OEMs and suppliers.

— with files from Associated Press