Delphi is approaching a deal with its unions and General Motors regarding upcoming concessions a leading industry analyst told Reuters late Tuesday night.
UPDATE: Reuters reported Wednesday the UAW has presented a counter offer to Delphi and its creditors containing concessions. No details are available as to what concessions the UAW has offered.
David Cole said that a deal could be announced sometime next week regarding a compromise between GM, the UAW, and Delphi. Such an agreement would resolve ongoing disputes between the UAW and Delphi over job cuts, wage cuts, benefit cuts, plant closures and moving production overseas.
Talks between the UAW and Delphi seemed to have broken down last month as the UAW was taking steps to prepare for a strike should the bankruptcy judge break the contract and impose Delphi’s requested concessions. Delphi has announced they would like to close 21 of 29 US plants, and layoff more than 80 percent of their workforce with the UAW and other union members bearing the brunt of the cuts.
Many Delphi employees took buyouts that were offered last year rather than face steep wage and benefit cuts. Delphi now argues those cuts weren’t steep enough but incurred the UAW’s wrath and strike preparations when the parts maker announced significant bonuses for top company executives while requesting additional workforce sacrifice.
