Delphi's new plan:with GM's help

[Ghost Dog]

http://www.detnews.com/apps/pbcs.dll/artic...UTO01/603270379

Bankrupt Delphi Corp.'s United Auto Workers locals today will receive a proposed contract that calls for a gradual reduction in wages and benefits for its blue-collar work force instead of the abrupt pay cuts spelled out in two previous proposals.

Under the new offer, Delphi's hourly workers -- now paid $27 per hour -- would see wages initially cut to roughly $22 per hour and then fall gradually to about $16 per hour, according to sources familiar with the proposal.

The offer, which is key to Delphi's plan to emerge from bankruptcy next year, likely would be contingent on General Motors Corp. agreeing to subsidize at least part of Delphi's wages until the hourly rate hits the lower level. The deal would require ratification by the union's rank and file and federal bankruptcy court.

The Majority(If not all) of the $27 an hour people are eligible for the buyout and Flowback plans.

The second tier people are at $14-$18 an hour now.

Whatever the people at the plants decide. Its thier lives and thier choice.

[the_yellow_dart]

While it is very necessary to make these pay cuts, I feel for the people. When choosing what to buy (cars, houses, etc...), you choose based on your income. If your income changes massively like this, you have to sell everything... Well, I guess it is good news for anyone looking to buy houses or used cars in big GM plant cities...