October 26, 2005 1:00 PM, EDT

Delphi Reported to Ask UAW for Big Wage, Benefit Cuts

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elphi Corp., which filed for bankruptcy protection earlier this month, is asking the United Auto Workers to agree to pay cuts of more than 60% for hourly workers and to relinquish health and pension benefits and vacation time, news reports said.

The company proposes to cut base pay to as low as $9.50 per hour, from about $27.50 per hour, increase contributions for health care, and eliminate dental and vision coverage, Reuters reported.

It wants the contract to run from Jan. 1, 2006 to January 2012, Reuters said.

The UAW represents most of Delphi's approximately 34,000 U.S. hourly workers.

One summary of the proposal was posted Tuesday on the Web site of UAW Local 292 in Kokomo, Ind., as well as a Web site run by Kokomo-area union members, the Associated Press reported.

Neither Delphi nor UAW leadership has officially released details of the proposal, since U.S. Bankruptcy Judge Robert Drain granted Delphi's request to keep its contract proposals confidential. Delphi is scheduled to appear in bankruptcy court Thursday.

(Click here for previous coverage.)