Delphi demands huge cuts from labor

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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