GM, Delphi turn to temp workers

DETROIT, June 25 (UPI) -- Stock analysts are bullish on General Motors Corp. as higher paid hourly workers take buyouts and are replaced by lower-wage temporary workers.

The buyout plan is part of a restructuring of both GM and parts supplier Delphi Corp., ranging between $35,000 and $140,000 per person.

The Chicago Tribune reports an estimated 34,000 and 40,000 workers total will accept the buyout. GM Chief Executive Rick Wagoner will detail the numbers on Monday.

Those taking the buyouts are receiving benefits and pensions beyond their hourly wage of around $27 per hour.

Replacing them are temporary workers making $14 per hour at Delphi and $19 per hour at GM. Neither group gets benefits right away and they only receive limited benefits after a certain amount of time on the job.

John Murphy of Merrill Lynch said the plan is a boon for the company profits, which is why he's recommending people purchase GM stocks.