Delphi Hopes to Wrap Up Other Union Deals in Weeks
Bankrupt U.S. auto parts maker Delphi, which reached a cost-cutting deal with the United Auto Workers, hopes to complete agreements with its remaining unions by mid-August, it said in court papers.
Delphi is engaged in active bargaining with its second and third largest unions and expects to resume formal talks with its remaining unions within weeks, it said Friday in requesting U.S. Bankruptcy Court approval for the UAW settlement.
The UAW, Delphi and former Delphi parent General Motors reached agreement in June on a deal that cemented cuts in wages and benefits, plant closings and sales, and detailed future GM business with Delphi.
UAW members ratified that agreement on Friday and Delphi has asked the U.S. Bankruptcy Court in New York to approve the deal on July 19.
Delphi, which filed for bankruptcy in October 2005, still must reach agreements with its other unions and make changes to an equity plan to support its exit from court protection.
The other unions are the International Union of Electrical Workers-Communications Workers of America, the United Steelworkers, the International Association of Machinists, the International Brotherhood of Electrical Workers and the International Union of Operating Engineers.
The deal with the UAW removed a threat of a strike that could have crippled Delphi and GM, Delphi's biggest customer.
Delphi plans to retain four UAW plants, set four for sale, shift three to GM or a third party, and exit 10 others.