General Motors Corp. and bankrupt auto parts maker Delphi Corp. are near a deal with the United Auto Workers union that would provide a cash payout to Delphi workers in exchange for lower hourly wages, the Detroit News reported on Thursday.
GM would fund the program. An agreement could be completed within a week or so, helping Delphi to emerge from bankruptcy, according to the report.
The proposal would offer 4,000 UAW workers an unspecified one-time lump sum cash payment in return for accepting lower wages that could range from $14 to $18 per hour. Workers could also take the lump sum and accept early retirement or flow back to GM, the Detroit News said, citing people familiar with the talks.
Delphi, GM and the UAW did not immediately return calls seeking comment.