The auto-parts maker Delphi said yesterday that 6,300 hourly workers at the company’s second-largest union, or 83 percent of those eligible, have chosen to leave through retirements or buyouts.þþThe union, the International Union of Electrical Workers-Communications Workers of America, has represented about a quarter of Delphi’s hourly work force, second only to the United Automobile Workers.þþA Delphi spokesman, Lindsey Williams, said workers would depart through the rest of 2006 under the program, leaving Delphi with about 1,200 workers represented by the electrical workers union.þþThe departure of workers from Delphi, based in Troy, Mich., is expected to help reduce the likelihood of strikes as the company negotiates wage and benefit reductions for the remaining workers. Delphi, its unions and its former parent, General Motors, remain in negotiations to try to settle labor issues and avoid strikes.þþDelphi has asked a bankruptcy judge to allow it to impose reductions if it cannot reach a settlement, and unions have threatened to strike over that issue. A hearing into Delphi’s request has been delayed to Sept. 18.þþThe number of workers choosing to leave “demonstrates the gravity of the situation we face,” the union president, Jim Clark, said in a statement.þþAbout 3,200 members of the electrical workers union were eligible for retirement or preretirement incentives, and all 7,500 were eligible for buyouts that included lump-sum payments to sever ties.þþG.M. agreed to cover lump-sum payments for workers accepting retirement plans and half the cost of buyouts. G.M. will also finance benefits for Delphi workers who choose to retire from G.M. under the arrangements with the union.þþDelphi had more than 33,000 hourly workers when it filed for bankruptcy in October last year. The auto workers represented 24,000 workers, and the electrical union 8,500.þþThe parts maker expects to eliminate about four-fifths of its hourly work force in the overhaul, which includes plans to shed noncore business lines and close or sell 21 of 29 union plants in the United States.þþMore than half of its hourly workers in the United States have elected to take retirement or buyout plans. Delphi can replace workers at sharply lower wages under current contracts, but has said it needs deeper cuts to reorganize.þþSo far, 12,500 members of the auto workers have chosen retirement options, and others have until mid-September to decide whether to take retirements or buyouts under a second deal; 5,000 auto workers at Delphi can return to G.M. when jobs are available.þþ
Source: NY Times
