Delphi on Wednesday that 12,400 of its employees, representing roughly 85% of the retirement-eligible UAW workforce have opted to retire by 1 January 1, 2007 under the hourly special attrition plan agreed on 22 March and the hourly special supplemental attrition plan agreed on 2 June 2 between the UAW, General Motors and Delphi.
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Approximately 1,400 employees elected the buyout option.
Nearly all of Delphi’s US hourly employees represented by the UAW were eligible for the buyout programme, with approximately 14,600 of those employees eligible to participate in the retirement and pre-retirement programme. Some US hourly employees have accepted a lump sum incentive of $US35,000 to retire while others chose buyout packages ranging from $40,000 to $140,000.
Under the proposed program, GM has agreed to assume the financial obligations related to the lump sum payments to be made to Delphi’s US hourly employees accepting normal or voluntary retirement incentives. GM also will fund post-retirement employee benefit obligations related to Delphi employees who move to GM under the plan for retirement purposes as well as half of the employee buyout costs.
Delphi filed for Chapter 11 bankruptcy reorganisation of its operations in the United States in New York on 8 October last year.
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By GlobalData
