Delphi has delivered its latest proposal for cuts in wages and benefits to the United Auto Workers, which represents the majority of the supplier’s 34,000 hourly workers, the union told The Associated Press (AP).
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UAW spokesman Paul Krell said the union had received the proposal, but declined to comment on details.
Delphi spokesman Lindsey Williams would not confirm that a new proposal had been completed, AP added.
Under the latest offer, Delphi’s hourly workers, who currently are paid US$27 per hour, would see their wages initially cut to $22 per hour and then fall gradually to about $16 per hour, sources familiar with the proposal told The Detroit News, according to the report.
Delphi wants to cut its wage and benefit rates and has set a deadline of Thursday to reach an agreement with former parent General Motors, the UAW and other unions, AP noted, adding that, if no agreement is reached, Delphi could ask a bankruptcy judge to cancel its union contracts, an action that could lead to a devastating strike.
