DETROIT -- General Motors and beleaguered auto supplier Delphi Corp. have reached a deal with the UAW that will allow the automaker and supplier to cut tens of thousands of jobs.
GM will pay most of the costs associated with the deal. The ailing automaker said it would account for the costs this year but did not give an estimate of those costs.
Together, GM and Delphi will offer buyouts to more than 125,000 hourly workers -- many of whom are eligible to retire based on age or years of service or who are within a couple of years of qualifying for retirement. Delphi was a subsidiary of GM until 1999.
The buyout offers start at $35,000 for GM and Delphi workers who already are eligible to retire and collect their full retirement benefits. GM workers who have at least 10 years of service and agree to give up all retirement benefits except vested pension, can get up to $140,000. GM will pay the buyout costs for Delphi workers who leave.
The buyout program, which has taken weeks of intensive negotiation involving GM, Delphi and the UAW, is aimed at helping Delphi shed thousands of high-wage workers during its Chapter 11 reorganization. Delphi filed for Chapter 11 last October.