Delphi, Union Agree to Buyout Plan
Delphi (DPHIQ.PK) has agreed on a buyout plan with its second-largest union, according to a media report.
The auto parts supplier, which has been operating under Chapter 11 bankruptcy protection since October, announced the agreement with the International Union of Electronic Workers-Communications Workers of America and
General Motors
(GM) - Get General Motors Company Report
, Delphi¿s former parent and biggest customer, the
Associated Press
TheStreet Recommends
reported.
A week ago, Delphi, which is struggling to cut costs through employee reductions, announced a similar buyout package with its largest union, the United Auto Workers union.
GM has agreed to provide financial support under the IUE-CWA plan, which would have to receive bankruptcy court approval, according the
AP
.
About 8,000 hourly workers represented by the union will be eligible. They may opt for buyout packages ranging from $40,000 to $140,000. Some will be be offered a lump sum of $35,000 to retire. The plan also will allow as many as 3,200 Delphi employees to receive retirement benefits from GM.
Delphi shares finished the week at $1.73. GM stock rose a penny Friday to $25.60.
