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Last Updated: Monday, 28 November 2005, 21:51 GMT
Delphi postpones wage cut plans
Delphi HQ
Delphi is the largest US firm to file for bankruptcy protection
Struggling US car-parts maker Delphi has delayed plans to cut staff wages, reducing fears of a strike at the firm, the main supplier to General Motors.

Delphi, which applied for US bankruptcy protection at the start of last month, had previously said it needed to cut wages and benefits to avoid collapse.

Unions at Delphi, who had threatened strike action over the cuts, welcomed the one-month delay.

The news came as General Motors agreed to give up agreed price reductions.

GM, which owned Delphi until 1999, has agreed to temporarily give up previously agreed price reductions on Delphi parts for 2006.

The move effectively throws Delphi an additional financial lifeline.

Union response

"These constructive actions demonstrate a willingness to accelerate efforts to achieve consensual resolutions to the significant challenges facing Delphi," said Delphi chief executive Steve Miller.

The United Auto Workers union, which represents the majority of Delphi's 34,750 workers, said it viewed the company's delay to wage cuts as a positive sign, but called for more talks.

"If Delphi is serious about restarting discussions, taking that insulting proposal [on wage cuts] off the table would be a good place to start," said UAW president Ron Gettelfinger and vice president Richard Shoemaker.

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