Auto parts maker Delphi plans to cut 8,500 jobs; union contracts

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Friday, March 31, 2006

The world's second largest auto parts maker, Delphi Corporation, 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 UAW union. The move would also shutdown over a third of its factories worldwide, including twenty one located in the United States.

Eight plants in the U.S. are slated to continue operating. Those located in Clinton, Mississippi, Brookhaven, Mississippi, Lockport, New York, Rochester, New York, Warren, Ohio, Vandalia, Ohio, Kokomo, Indiana, and Grand Rapids, Michigan 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 from $27 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.

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