June 23, 2007 (LPAC)--U.S. auto parts manufacturer Delphi, and the United Auto Workers union reached agreement June 22 on contract negotiations, including large wage and benefit cuts, although neither party is going public with the details until after it is voted on by the 17,000 UAW members next week. Vulture funds looking to buy Delphi out of bankruptcy had been pushing for beginning wages to be lowered to $12 per hour, but the final deal will probably have wages beginning at $14 per hour, just half of what the workers presently earn. GM, formerly the parent company of Delphi, says it will commit $300-$400 million annually to bridge the wage gap between what Delphi will pay and what the UAW wants. Workers would also be eligible to move to open jobs at GM, or take a retirement option.

Part of the deal allows Delphi to close seven plants, while keeping four open and selling the rest, according to Bloomberg.com.