The downward spiral at Delphi continues. According to a memo obtained by Detroit News, Delphi is demanding huge cuts from the UAW. The company wants to slash wages by 60 percent, cutting down as low as $10 per hour for production wages, eliminating a jobs bank for laid-off works, and the right to close or sell over 20 manufacturing facilities during the next three years. Sources also say the GM is refusing to provide financial support to the scandal-ridden automotive parts supplier. Everyone is skeptical that Delphi can pull any kind of deal together before federal bankruptcy law changes on October 17. Additionally, any concessions from the UAW will not help sustain Delphi without serious GM backing. Delphi will most likely file for Chapter 11, at which point the UAW may face similarly gruesome concessions.
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