Delphi buyouts being discussed

From Kokomo Tribune staff reports

The Wall Street Journal today reported that General Motors Corp. and the United Auto Workers are discussing the possibility of having GM offer buyouts to older workers at Delphi Corp. to retire.

Citing "people familiar with the matter," the Journal stated such a deal could help Delphi, which is operating under bankruptcy protection, pare its payroll and ease the transition to retirement for some of the auto supplier's 34,500 UAW workers. GM isn't under any obligation to buy out Delphi workers, but such buyouts could help reduce the threat of a strike and labor uncertainty stemming from Delphi's bankruptcy filing, the Journal reported.

According to the Journal, the outlines of any deal are still up for discussion and that buyouts may be tied to assurances there would be no strikes. Strikes at some Delphi plants could severely impact GM assembly plants possibly forcing plant shutdowns, just when it's trying to build up revenue after massive losses.

The Journal stated it is unclear which pension fund the buyout retirees would go into - Delphi or GM, the latter being the preference for UAW. About half of Delphi's 24,500 active UAW workers are within five years of the 30 years typically required for UAW workers to become eligible for retirement, according to Delphi.

Citing a UAW official familiar with discussions, the Journal further reported that before Delphi's bankruptcy filing, the UAW and GM had been discussing $25,000 per-person buyouts of both GM and Delphi workers, possibly paving the way for Delphi workers to flow back to GM. That plan eroded after Delphi filed for bankruptcy.