United Auto Workers members were preparing to vote on a tentative deal the union reached near presstime with bankrupt parts supplier Delphi Corp. and its former parent, General Motors Corp. The deal was set for ratification as soon as June 28.
Delphi, GM and the UAW reached an agreement June 22 that helps pave the way for the parts maker to exit bankruptcy later this year, most likely as a private company. It also relieves a massive labor burden for GM ahead of its own contract talks with the UAW later this summer.
GM, which spun-off Delphi nine years ago but remains tightly linked to the supplier through labor agreements, will foot an estimated $7 billion to cover its share of Delphi worker benefits.
The agreement, publicized by the Soldiers of Solidarity dissident union group, shows workers with high seniority would receive a yearly installment of $35,000 over a 3-year period in return for taking a pay cut to $18.50 per hour from $27 per hour. Workers with less than 10 years seniority would receive a yearly $10,000 installment over the same 3-year period.
