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Labor Deal Cuts Delphi Workers' Pay

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Labor Deal Cuts Delphi Workers' Pay

Economy

Labor Deal Cuts Delphi Workers' Pay

Labor Deal Cuts Delphi Workers' Pay

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During the weekend, details were leaked of an agreement between auto parts maker Delphi and the UAW. About 17,000 of the company's workers face a difficult decision: Vote "yes" on a new labor agreement that cuts wages about 40 percent, and possibly get a buyout; or vote "no" and take their chances with the bankruptcy court.

Word of the tentative agreement between Delphi and the autoworkers union came late last week, but details of the deal leaked on a dissident union Web site. The new contract would lower starting wages from $27 an hour to $14. The complex agreement would offer buyouts to veteran workers and incentives to others.

Some UAW members, mostly those who have been with the company for a long time, expressed displeasure with the deal. Several union Web sites carried postings exhorting members to "Vote NO."

But for newer employees, the deal may be better than seeing Delphi go out of business. Half of Delphi's workers are relatively new hires, and they could make up to $18.50 an hour under the new agreement.

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