General Motors, Delphi workers accept retirement deals

06/16/06 - newratings.com

NEW YORK, June 16 (newratings.com) – The United Auto Workers Association (UAW) Thursday announced that more than 33,000 workers at automobile giant General Motors (XGM) and bankrupt auto parts maker Delphi Corp (DPA) had accepted early retirement packages.

The UAW mentioned that 25,000 employees of General Motors and 8,500 Delphi staff had signed up for various deals ranging from $35,000 to $140,000. UAW President Ron Gettelfinger said the number of employees accepting retirement packages was better than the union’s initial expectations. The retirement packages are being offered as part of the cost cutting plans of the two companies. The offers are available till June 23.

Faced with rising administrative costs and increased competition, General Motors and Delphi have announced cost cutting and restructuring plans for their North American operations. While General Motors plans to cut 30,000 jobs and shut down 12 plants, Delphi intends to close down 21 of its 29 manufacturing facilities. Meanwhile, the UAW and Delphi are currently holding negotiations to try and avoid a strike at the auto parts supplier. Union workers at the auto parts supplier have threatened to go on strike if the court allows the company to cancel their existing contracts and impose new working conditions and pay cuts.