After 20 months of negotiations over restructuring and wage cuts, Delphi Corp. and the UAW announced on 22 June that they had reached a tentative agreement and signed a Memorandum of Understanding with General Motors covering site plans, workforce transition and other “comprehensive transformational issues”. The agreement is subject to local union branch ratification and approval by the U.S. Bankruptcy Court.

"If ratified, we believe this agreement will be a significant milestone in our transformation and a major step towards emergence (from bankruptcy)," said John Sheehan, Delphi's chief restructuring officer, adding, "The Memorandum is a testament to the dedication and hard work of the UAW, Delphi and General Motors teams." Delphi said it would not provide further commentary on the details of the Memorandum, and UAW President Ron Gettelfinger and UAW Vice President Cal Rapson said details were being withheld based on explanation and ratification meetings by local unions.

Some U.S. media reports suggested that the UAW had agreed to hourly wages being cut from $27 to $18.50.

Spun out from GM in 1999, Delphi filed for Chapter 11 US bankruptcy protection in 2005. GM is exposed to costs of over $7bn (£3.5bn) related to Delphi’s insolvency.


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