March 23, 2006
GM, the UAW and Delphi reach agreement on employee reduction program
Detroit, Michigan – General Motors, the United Auto Workers union and Delphi Corp. have reached an agreement to reduce the number of U.S. hourly employees through an accelerated attrition program. The agreement, which is an important contributor to GM’s turnaround plan in North America, is subject to approval of Delphi’s participation by the Bankruptcy Court.
The program is expected to be offered to U.S. hourly employees at GM and select UAW-represented members of Delphi’s hourly work force. It will include a combination of early retirement incentives and other considerations to help reduce employment levels at both GM and Delphi.
The program will be offered to all GM hourly employees, but overall acceptance rates will depend on individual employee decisions. The program also permits the flow of UAW-represented Delphi employees back to GM until September 2007. In addition, eligible UAW-represented Delphi employees may elect to retire from Delphi or flow back to GM and retire.