Judge allows Delphi to pay for union advisers

2/10/2006

NEW YORK - A bankruptcy court judge said yesterday Delphi Corp. can pay fees of two investment banks and a special consultant hired by its unions to advise them on contract negotiations. The fees will be credited to the auto-parts maker, which filed for bankruptcy protection in October, when it reaches a settlement agreement.

The unions, which represent 95 percent of the company's hourly workers in the United States, are the United Auto Workers and the International Union of Electrical Workers-Communications Workers of America.

Delphi has asked the UAW to agree to wage and benefit cuts, and it is negotiating with GM and the union over the future of hourly workers.