Unions make huge concessions to Delphi

| Friday, July 06, 2007

The bankrupt auto parts maker Delphi has been handed some huge concessions by the UAW and Steelworkers’ unions.

Nearly 70 percent of the workers voted in favor of a contract that will cut hourly wages from as much as $27 to as little as $14, The Associated Press reported.

The employee’s share of health care costs will also increase.

Some observers speculate the unions accepted the concessions rather than take their chances with a bankruptcy judge, who could have ordered even more drastic cuts.