Delphi Offers Bonuses in Exchange for Pay Cuts

Click here to write a Letter to the Editor.

ankrupt parts-maker Delphi Corp. has offered United Auto Workers members $50,000 each in exchange for a 35% pay cut, Bloomberg reported.

The offer is contingent on former Delphi parent General Motors Corp. helping to pay the wages of Delphi workers, according to a contract proposal obtained by Bloomberg.

Delphi filed Chapter 11 bankruptcy in October. (Click here for previous coverage.)

Hourly pay for Delphi workers would drop initially to $22 and then to $16.50 on Sept. 3, 2007. If GM does not help pay the costs, wages for long-time Delphi employees would fall to as low as $12 an hour, Bloomberg said. Health-care benefits for retirees also would be eliminated.

Delphi's UAW locals received the offer Monday, three days before Delphi Chief Executive Officer Steve Miller's deadline for an agreement, Bloomberg reported.

Miller has said he will ask a U.S. Bankruptcy Court judge to cancel contracts at the end of March if there is no new accord.

The UAW has pledged to strike if the court allows the contracts to be thrown out, Bloomberg said.