Delphi could cut healthcare for 15,000

NEW YORK, Feb. 24 (UPI) -- About 1,500 former Delphi Corp. employees have asked a U.S. court not to allow the company to cancel health benefits for retired workers, court records show.

The auto parts giant has requested permission from a New York bankruptcy court to cancel healthcare coverage for 15,000 retired workers, The Detroit News reported Tuesday.

Delphi would save $200 million annually and $1.2 billion overall, should the judge permit the company to cut coverage.

Delphi says healthcare coverage would cost its retirees between $305 and $666 a month. Family coverage could cost up to $22,400 a year to replace. But, the current policies aren't "vested benefits," meaning it can cancel the policies unilaterally, the company said.

In a letter, retired David Blaze, asked the judge not to allow the company to "bailout on their responsibilities," the News said.

As automakers Chrysler LLC and General Motors Corp. have struggled to stave off bankruptcy, Delphi's action, "sends a chilling message to every salaried auto retiree," Harley Shaiken, a labor expert at the University of California, Berkley, said to the newspaper.