Auto parts maker Delphi plans to cut 8,500 jobs; union contracts
Friday, March 31, 2006
The world's second largest auto parts maker, United States., has announced today that 8,500 salary workers may be out of a job soon as part of a major restructuring plan, which will also include voiding the contract with the union. The move would also shutdown over a third of its factories worldwide, including twenty one located in the
Eight plants in the U.S. are slated to continue operating. Those located in, , , Mississippi, , , , New York, , , , Ohio, , , and , will continue to serve as Delphi properties. The rest of the factories are said to either be sold to other companies, or to be closed entirely.
The plans were brought up to a bankruptcy judge earlier today. In addition to the proposed closings and layoffs, 34,000 workers may experience cut wages and less benefits. Hourly workers wages will drop from27 to $22 an hour soon, and will further decrease to $16.50 in late 2007.
Delphi previously filed for Chapter 11 bankruptcy in October 2005. In the original filing, requests were made to drop the hourly wages down to $12.50 an hour.
- ASSOCIATED PRESS / Dee-Ann Durbin. "Update 16: Delphi Seeks to Void Union Deals, Cut Jobs" — , March 31, 2006
- Rick Haglund. "Delphi files with court to sever labor contracts" — , March 31, 2006
- Chris Isidore. "Delphi actions could bankrupt GM" — , March 31, 2006
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