About 6,300 Delphi employees, representing roughly 83% of the eligible IUE-CWA unionised workforce, have decided to leave under a deal agreed between the company, unions and General Motors last June.
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The programme offered ‘incentivised’ and early retirements along with pre-retirement and buy-outs for eligible employees with GM agreeing to provide financial support.
The UAW said earlier in the summer that about 13,000 of its members at Delphi had accepted similar deals, with an additional 5,000 expected eventually to transfer to GM.
The latest announcement is likely to lessen the chances of a strike which would cripple both Delphi and GM.
“The IUE-CWA leadership is to be commended for their efforts to provide options for their membership as Delphi aligns its staffing levels to provide a stronger framework for successful emergence from [bankruptcy],” said Delphi president and chief operating officer Rodney O’Neal. “The strong participation in the attrition programme strengthens our ability to more rapidly transform our US manufacturing operations.”
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By GlobalDataApproximately 7,500 U.S. hourly employees represented by the IUE-CWA were eligible for the buyout program, with approximately 3,200 of those employees eligible to participate in the retirement and pre-retirement program. Some hourly employees accepted a lump sum incentive of $35,000 to retire while other eligible employees under the programme elected buyout packages ranging from $40,000 to $140,000.
GM agreed to assume the financial obligations related to the lump sum payments to be made to Delphi US hourly employees accepting normal or voluntary retirement incentives. GM will also fund post-retirement employee benefit obligations related to Delphi employees who transition to GM under the plan for purposes of retirement as well as half of employee buyout costs.
Delphi filed for Chapter 11 bankruptcy reorganisation on 8 October, 2005.
Its latest hearing before bankruptcy judge Robert Drain was postponed for a month on Thursday.
