DETROIT --J.P. Morgan Securities Inc. on Thursday issued a report saying that UAW members may be closer to concluding that they'll have to make concessions to Delphi Corp. to prevent a Delphi bankruptcy filing.
The New York securities firm cited a UAW local membership update posted Thursday on a Web site, www.futureoftheunion.com. The update said Delphi wants concessions that would cut hourly wages to $10-$12 for production workers, eliminating a jobs bank for idled workers, an end to cost-of-living increases, and cuts in health care and holidays.
J.P. Morgan said the letter means that a portion of the membership has resigned itself to major concessions. At one point, the letter says that the concessions requested by Delphi may look better than that requested from a bankruptcy judge.
Delphi's 25,000 UAW members earn about $65 an hour, including benefits.
Delphi CEO Steve Miller said he will enter Delphi's U.S. operations into Chapter 11 bankruptcy protection by Oct. 17 unless he gets concessions from the UAW and financial assistance from General Motors to relieve high labor and pension costs.
Delphi spokeswoman Claudia Baucus declined to comment.
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