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Delphi Automotive plans layoffs

Auto parts manufacturer Delphi Automotive Systems Corp. today announced plans to temporarily lay off 1,700 hourly employees over the next three weeks at its New York, Michigan and Ohio facilities.
The company employs 54,000 hourly workers in 43 plants in the United States. The company employs 3,200 here.
John Pekarek, the company’s director of media relations, claimed that Delphi has not yet determined which of its facilities in the three states would be targeted for the layoffs.
The move is in response to decreased customer demands, company officials said. The announcement comes a month after it laid off 101 employees from its vehicle steering systems operations in Michigan as a result of decreased orders.
In a prepared statement, J.T. Battenberg III, Delphi’s chairman, CEO and president, said, “Overall customer schedules in the automotive industry are softening and we are taking steps to prepare our company for reduced volumes and intensified economic and competitive pressure in the coming months.”
Workers affected by the job cuts will be given notice during the week prior to the layoff. They are to be paid up to 95 percent of their regular pay based on their union’s contract and seniority.
Delphi has contracts with three unions. “Fortune” magazine reported earlier this year that one agreement with the United Auto Workers union, that dates back to the days before General Motors Corp. spun off Delphi, has the company locked into paying some employees $45 an hour in wages and benefits—nearly double the compensation for UAW members in competitors’ plants.
The company’s stock (NYSE: DPH) has drifted downward from an April high of more than $21 a share to trade at $13.62 a share at midday.
“This really just covers plans through the balance of the year,” said Steven Gaut, Delphi’s corporate director of external communications. “We’ll be re-examining the workforce needs and any additional customer schedule information on a weekly basis.”

Delphi Automotive plans layoffs

Auto parts manufacturer Delphi Automotive Systems Corp. today announced plans to temporarily lay off 1,700 hourly employees over the next three weeks at its New York, Michigan and Ohio facilities. The company employs 54,000 hourly workers in 43 plants in the United States. The company employs 3,200 here. John Pekarek, the company’s director of media relations, claimed that Delphi has not yet determined which of its facilities in the three states would be targeted for the layoffs.

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