Delphi puts hold on union cancellations, negotiates lowered wages

| Tuesday, November 29, 2005

In hopes of preventing strikes, auto parts manufacturer Delphi has agreed to hold off on its union demands, just weeks after the Chapter 11 company threatened to sever its union contract negotiations.

According to the Chicago Tribune, the move is being viewed as “breathing room” for the company, which filed for bankruptcy protection Oct. 8. The company had asked a federal judge to void its union contracts by Dec. 16, but has withdrawn the request to avoid costly potential strikes and labor disputes.

Meanwhile, Delphi is trying to negotiate lower wages with its unions, including the United Auto Workers. The proposal would cut union employees’ wages from $27 an hour to about $12.50 an hour, the Tribune reported.

Earlier in the week, General Motors, which owns $15.4 billion in stock in the company, gave Delphi a price break, which also gave some leniency to the struggling parts manufacturer.

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