Delphi Corp. (DPHIQ) and former parent General Motors Corp. (GM) are "very close" to reaching a deal with the United Auto Workers that would provide a cash payout to Delphi workers in exchange for lower hourly wages, people familiar with the talks said Wednesday, The Detroit News reported in its Thursday editions.
General Motors would fund the program.
Talks between GM, the UAW, Delphi and its equity partners were held Wednesday, and the parties hope to complete an agreement within a week or so.
The proposal would offer 4,000 UAW workers a one-time lump sum cash payment in return for accepting lower wages that could range from $14-$18 an hour - similar to what newer temporary workers earn. Workers could also take the lump sum and accept early retirement or flow back to GM. The amount of the lump sum payment is not clear, the paper reported.
Delphi spokesman Lindsey Williams declined to comment Wednesday on details of the talks.
General Motors spokeswoman Renee Rashid-Merem acknowledged that GM will have to assume some Delphi labor costs, but declined to confirm whether an offer of a lump sum in exchange for lower wage rates was on the table. She said the talks were continuing and progress was being made, The Detroit News reported.
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