TROY, Mich., March 31 (UPI) -- Bankrupt Michigan auto parts supplier Delphi Corp. outlined Friday a reorganization plan that envisions a radically different company.
About 8,500 white-collar workers will be dismissed and as many as 40 percent of corporate officers fired.
Pending approval of the bankruptcy court, blue-collar workers will see pay cut from $65 per hour to $22 per hour through Sept. 3, 2007. After that, workers' wages decline to $16.50 per hour, though they also get a one-time $50,000 "wage buydown" payment.
Nearly all its 29 U.S. factories will be sold as Delphi exits "non-core" businesses. Those businesses include making brakes, chassises, catalysts, panels, doors, steering wheels and wheel bearing components.
The company also said it will freeze the current hourly U.S. pension plan as of Oct. 1 and freeze the current U.S. salaried pension plan as of Jan. 1, 2007. There will not be any loss of accrued benefits for current employees or retirees participating in the pension plans.
Delphi stressed that this reorganization plan depends upon enhanced financial support from General Motors Corp., its former parent and current largest customer.
