Delphi, GM, UAW come to an agreement

Delphi, the UAW, and GM have come to an accord. Pending approval by UAW members and federal bankruptcy court, it would mean that Delphi can focus on the other pressing matters in front of it after spending two years in bankruptcy.

The deal would require a one-time payout from GM, in return for which Delphi could pay lower wages and trim its business operations in line with its current condition. No amount has been given yet for the payout, but wages would be capped at $18.50 an hour, down from $27 per hour now. The agreement also gives Delphi the go-ahead to close plants -- it wants to shutter 21 of its 29 US factories -- shed 4/5 of its hourly work force and thousands of salaried employees, and eliminate some of its business operations.

Now what remains pressing for Delphi is to get the new capital it needs. Talks continue for a $3.4 billion infusion from Appaloosa Management LP and other banking partners. GM estimates that during the Delphi crisis, it has been hit with an estimated $7 billion bill for Delphi's restructuring.

[Source: CNN]