NEW YORK (AP) — A federal judge Wednesday approved two settlements between Delphi Corp. and the United Steelworkers union, a move that resolved the last remaining labor disputes in the company's bankruptcy reorganization.
Judge Robert Drain, of the U.S. Bankruptcy Court in Manhattan, approved the deals that cover union members working out of two Dayton, Ohio, facilities. The deals have not yet been ratified by the USW but should receive union approval sometime in September.
''I conclude that as a settlement these two agreements are fairly reasonable and were subject to arm's length negotiations and in fact, fairly intense negotiations,'' Drain said.
Delphi, based in Troy, Michigan, is the biggest supplier of parts to General Motors Corp. and other auto manufacturers. Cutting labor costs has been a key element of its bankruptcy reorganization. The USW was the last of Delphi's U.S.-based unions to come to terms with the company.
Earlier this month, Drain approved agreements with four other unions, including the IUE-CWA, the International Association of Machinists, the International Brotherhood of Electrical Workers and the International Union of Operating Engineers.
Jack Butler, attorney representing Delphi at the hearing Wednesday, said that now that the union agreements are in place, Delphi intends to file a summary of its Chapter 11 bankruptcy reorganization plan before the end of September. Delphi, which has secured $2.55 billion (euro1.87 billion) in financing from a group of investors led by Appaloosa Management, is looking to exit bankruptcy by year's end.