Delphi Corp. Delays Union Contract Rejection, Extends Restructuring Talks

Strategic Insights -

Delphi Corp., a major US auto supplier, announced on Monday that it would delay its effort to reject union contracts until January 20, citing progress in restructuring talks with General Motors Corp. The news came as a relief to the United Auto Workers (UAW), who called the announcement positive but expressed concerns over Delphi's proposal to cut hourly wages by nearly 62 percent. General Motors Corp.'s shares rose on hopes that the negotiations would avoid a strike.

Key Takeaways:

  • Delphi Corp. has pushed back its effort to reject union contracts from December 16 to January 20, citing progress in restructuring talks with General Motors Corp.
  • The United Auto Workers (UAW) welcomed the announcement but expressed concerns over Delphi's proposal to cut hourly wages by nearly 62 percent.
  • The UAW will not restart stalled discussions with Delphi until the company retracts its proposal to cut wages.
  • General Motors Corp.'s shares rose on hopes that the negotiations would avoid a strike.
  • Delphi's restructuring talks with General Motors Corp. are ongoing, with no update on a potential deal.

Statistics:

  • Delphi Corp. will delay its effort to reject union contracts until January 20.
  • The UAW is demanding that Delphi retract its proposal to cut hourly wages by nearly 62 percent before restarting negotiations.
  • General Motors Corp.'s shares rose in reaction to the announcement.
  • Delphi's restructuring talks with General Motors Corp. are ongoing, with no update on a potential deal.

Sources:

  • "Delphi Corp. delays union contract rejection, sets new deadline," Reuters, December 13, 2021.
  • "Delphi Corp. to delay union contract rejection, extension of restructuring talks with General Motors Corp. announced," Bloomberg, December 13, 2021.