March 16, 2006

UAW targets buyout deal to delay Delphi contract action

The United Auto Workers is hoping an agreement on the narrow but important issue of employee buyouts might be enough to keep Delphi Corp. (DPHIQ) from trying soon to dump union contracts, a move which could potentially trigger a crippling UAW strike. Delphi has set a March 30 deadline for a labor agreement, or else it will ask the bankruptcy court the next day to void contracts. A full labor deal by that date seems unlikely, but the UAW, Delphi and General Motors Corp. (GM) could reach an agreement on employee buyouts for union workers. Delphi has pushed the deadline back multiple times already to allow for continued talks. It is possible a partial agreement before March 31 could lead to another delay, although the company is in a precarious position, said Hal Stack, professor and director of the Labor Studies Center at Wayne State University in Detroit . \"I think it\'s not an unreasonable position at all, but it\'s a very tricky calculation for Delphi ,\" Stack said. \"On one hand, they want to keep the time pressure on. Deadlines do have an impact on getting the sides to finally settle.\"

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