Wednesday, June 28, 2006

Delphi Hires Temp. Workers

June 28, 2006

Satellite Standard Group keeps you informed.

In the wake of a massive employee buy-out program for early retirement of union workers, Delphi has now hired about 2,000 temporary workers to maintain their operations.

The Delphi issue was central to General Motors lately, and the potential of a Delphi Strike would have caused production issues for GM. The success of the buy-put programs make a Delphi strike very unlikely at this point.

XM Satellite Radio, the exclusive satellite radio partner of GM would have been impacted with a production stoppage at GM. Delphi also is the brand name on some XM Satellite Radio hardware, but the manufacturing happens elswhere, so the impact on that aspect of XM's business would have been small. The big news here for shareholders of XM is that GM production will continue as planned.

Reuters Excerpt:

Delphi on Monday said about 12,600 UAW members opted to take early retirement offers -- about 87.5 percent of those eligible for Troy, Michigan-based Delphi's initial program.

Thousands more union workers may leave under an additional offer to UAW workers and offers of buyouts or early retirements to the International Union of Electrical Workers-Communications Workers of America earlier in June.

Delphi will seek bankruptcy court approval on Thursday for those additional plans. Workers will have 45 days from approval and company roll-out to sign up, making exact participation unknown until at least mid August.

Delphi, which filed for bankruptcy last October, had said it expected to cut four-fifths of its more than 33,000 U.S. hourly workers and thousands of salaried employees while shedding noncore business and plants in the United States.

The company remains focused on a comprehensive restructuring, of which the attrition plan, temporary hires and wage rates are only parts, Williams said.

Interested SSG readers can read the story HERE via Reuters

6/28/2006 02:40:00 PM

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