DETROIT (AFX) - Delphi Corp. has reached an agreement with its second-largest union and General Motors Corp. to offer buyouts to hourly workers that is similar to an earlier deal with the United Auto Workers union.
The auto parts supplier announced the agreement with the International Union of Electronic Workers-Communications Workers of America and GM, Delphi's former parent and its largest customer, late Friday.
Delphi filed for Chapter 11 bankruptcy protection in October. The buyouts are part of an effort to provide early-retirement incentives to Delphi workers as the Troy-based company seeks to cut its work force.
'We continue to be focused on the transformation of Delphi and this attrition plan provides a stronger framework to position our successful emergence from Chapter 11,' Delphi President and Chief Operating Officer Rodney O'Neal said in a statement. 'This plan further enables an effective transformation of our U.S. manufacturing and support operations.'
GM has agreed to provide financial support under the proposed plan, which is subject to bankruptcy court approval, Delphi said.
About 8,000 hourly workers represented by the IUE-CWA are eligible to participate. Some may be offered a lump sum payment of $35,000 to retire, Delphi said, while eligible employees may decide to accept buyout packages ranging from $40,000 to $140,000.
The plan also permits the transition of up to 3,200 Delphi workers represented by the IUE-CWA to GM for retirement purposes, Delphi said.
Earlier this month, Delphi announced a deal with the UAW and GM to offer buyouts to all hourly employees. Those buyouts greatly expand early-retirement incentives announced in March and meant that all UAW-represented employees will be offered something if they want to leave the company.
The UAW -- the largest of Delphi's six unions -- represents about 22,000 of Delphi's 31,000 workers. At the time, Delphi said it was negotiating with other unions to offer similar packages for their members.
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