Reply #29: GM may assume Delphi retiree costs

[54anickel]

http://www.freep.com/apps/pbcs.dll/article?AID=/20060321/BUSINESS01/603210332/-1/BUSINESS07

Many of the thousands of Delphi Corp. workers who are expected to return to General Motors Corp. in a deal under negotiation with the UAW could work at the automaker for a few days or weeks and then retire with a GM pension and retirement benefits, according to people familiar with the talks.

GM, the UAW and Delphi, continued to talk Monday after meeting through the weekend and discussed the deal that would encourage tens of thousands of hourly workers to retire from both companies.

If the workers retire from GM, the automaker would foot their bills for benefits. Workers could be persuaded that their benefits are more secure by retiring from GM rather than Delphi, which filed for bankruptcy.

The massive job-cutting effort is designed to cut the automaker's workforce and create some openings for Delphi workers to move back to GM, the former owner of the parts supplier, people familiar with the talks said Monday.

snip>

GM is playing a part in the talks because it depends on Delphi for parts and is potentially liable for up to $12 billion in pension and retirement health care and other benefits for Delphi workers. That was part of its agreement with the UAW to spin off Delphi as a separate company in 1999.

more...