Bankrupt auto parts maker Delphi Corp. will retain and operate four plants under a tentative agreement with the United Auto Workers, according to a document posted on a Web site run by union members.
Delphi would hold another four sites for divestiture as ongoing businesses and would wind down or consolidate 10 plants, according to the memorandum of understanding posted on www.SoldiersofSolidarity.com.
Delphi's agreement with the UAW and former parent General Motors Corp. also calls for cutting starting wages for new workers to $14 per hour, as well as one-time buy-down payments to existing workers of up to $105,000 in exchange for accepting lower initial wages of $14.50 to $18.50 an hour.
Workers at Delphi currently earn about $27 per hour.
Troy, Michigan-based Delphi, which filed for bankruptcy protection in October 2005, reached the tentative deal on Friday, removing a major barrier to its emergence from bankruptcy. The deal must still be ratified by UAW members and gain bankruptcy court approval.
The four plants to be owned and operated by Delphi are in Kokomo, Indiana, Grand Rapids, Michigan, and in Rochester and Lockport, both in New York State.
Delphi had been looking for steep cuts in wages and benefits as well as the flexibility to close or sell plants in order to compete against low-wage parts suppliers from China and elsewhere.
GM has estimated its exposure to the Delphi restructuring at $7 billion and said it could take a $1 billion charge this quarter for a settlement.
GM, which spun off Delphi in 1999 and remains Delphi's biggest customer, faces its own labor talks with the UAW next month.