Delphi Corp., posted a half year loss of $2.6 billion of which the bulk comes from its special attrition program.

The Detroit-based auto parts supplier announced on Tuesday that 73 percent or $1.9 billion of the net loss was spent on an employee buyout scheme, where thousands decided to either take and early retirement or cash out their retirement packet. The loss was three times larger compared to the previous period, where the firm recorded a loss of $741 million.

“In the first half of the year, Delphi achieved an 85 percent acceptance rate of UAW employees signing up for its special attrition program,” said Robert Dellinger, Delphi chief financial officer. “The attrition programs are a step in our transformation; however, we continue to experience losses reflecting an uncompetitive U.S. cost structure.”

Currently Delphi is involved in negotiations with the UAW and its former parent company GM to hammer out a labor contract. Recently, the firm had requested that a court delay a hearing for the annulment of its former labor contract that would result in lower wages. That move could possibly lead to a strike by that could shutdown its operation.

More than 10,000 UAW workers and around 8,000 International Union of Electronic Workers had signed up for the firm’s buyout package. The total value for the buyout program was not disclosed as the deadline for signing on was in September.

“Our leadership is addressing these issues with our stakeholders, including our unions and General Motors, as part of our reorganization proceedings through the bankruptcy court,” said Dellinger.

Currently the firm was negotiating a way out of its Chapter 11 bankruptcy that began in October 2005. The firm’s revenue increased 2 percent from $13.9 billion last year to $14 billion. Non-GM revenue for first half 2006 was $7.7 billion, up approximately 9 percent from $7.1 billion in first half 2005.

Non-GM business reached 55 percent of first half 2006 revenues, compared to year-ago levels of 51 percent.