Delphi, UAW Agree Reach Agreement On Wage Cuts
Friday, June 22nd 2007, 2:31 pm
By: News On 6
DETROIT (AP) _ Struggling auto parts maker Delphi Corp. reached a tentative wage-cutting agreement Friday with its largest union in what may set the pattern for future pay in the U.S. automotive parts industry.
The deal, which still must be voted on by Delphi members of the United Auto Workers, was signed just before a 1 p.m. meeting between the UAW leadership and presidents of the union's locals.
Details of the agreement were not released, but Delphi said in a statement it's a ``significant milestone'' in the company's quest to emerge from Chapter 11 bankruptcy protection.
Union officials speaking on condition of anonymity earlier this week because the deal had not yet been completed said the pact would cut wages for longtime UAW workers from around $27 per hour to between $14 and $18.50.
Industry analysts say it could become a template for other parts suppliers.
The pact, if approved, would end the threat of a strike that could have shut down production at General Motors Corp., Delphi's largest customer.
The deal would also bring to a close two years of often contentious negotiations in which the UAW threatened to strike and accused Delphi of leading a race to dismantle the middle class.
GM shares fell 46 cents to $35.50 in afternoon trading.