United Auto Workers members were preparing to vote on a tentative deal the union reached near presstime with bankrupt parts supplierCorp. and its former parent, Corp. The deal was set for ratification as soon as June 28.
, 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.