By Associated Press
Detroit, MI – Troubled auto parts supplier Delphi Corporation says it has an agreement with General Motors and the United Auto Workers to buy out thousands of hourly workers.
The plan still must be approved by a bankruptcy court.
It allows up to 5,000 workers to return to GM, Delphi's former parent. As many as 13,000 hourly workers also will be eligible for a lump-sum payment of up to $35,000 to retire.
Under the plan, GM would pay for the buyouts and would assume some post-retirement benefits for Delphi employees who go back to work for GM.
Delphi filed for bankruptcy in October. The company is the largest US auto supplier and GM's major supplier.
Delphi will continue talks with GM and its unions on a new labor agreement that would help avert a strike at Delphi.
Delphi has set a March 30th deadline to reach such an agreement with 34,000 hourly workers.
Delphi employs about 3,800 hourly workers at its plant in Lockport in Niagara County.