UAW Rejects Latest Delphi Offer

Union reps for the powerful U.S. workers group have turned down the most recent contract offer from the embattled auto-parts manufacturer.
Although the current proposal was reported to be substantially better than the former offer, union leaders still maintain that it would have a “devastating impact” on the company’s hourly workers.
The proposal suggested cuts to hourly pay rates of nearly 35% to $16.50 U.S. by September 2007, which would be partially subsidized by one-time payment of $50,000 U.S. in order ease the transition.
However, the new deal could be heavily contingent on Delphi receiving financial help from former parent company General Motors.
Without a GM lead bailout, the company is likely to resurrect their previous offer, which had hourly rates dipping as low as $12.50 U.S.