Delphi, GM near deal with workers'' union, say reports

14 June 2007

Mumbai: General Motors Corp of the US and bankrupt auto parts maker Delphi Corp. are near a deal with the United Auto Workers Union that would provide a cash payout to Delphi workers in exchange for lower hourly wages, the Detroit News reported.

Under the proposal, 4,000 UAW workers would be offered an unspecified one-time cash payment in return for accepting lower wages that could range from $14 to $18 per hour. Workers could also take the lump sum and accept early retirement or flow back to GM, the report said, citing people familiar with the talks.

US automakers pay their factory workers an average of about $73 per hour in wages and benefits, compared to just $44 per hour for the three major Japanese car makers operating plants in North America, according to industry data.

GM would fund the programme. An agreement could be completed within a week or so, helping Delphi to emerge from bankruptcy, according to the report.

Delphi, GM and the UAW did not immediately return calls seeking comment.

A Delphi settlement would remove a major uncertainty for GM, which next month begins its own contract talks with the UAW. GM and other automakers will be seeking deep concessions intended to bring their labor costs in line with rivals such as Toyota Motor Corp.