From Detroit Free Press

Delphi Corp. and the UAW appear to be moving toward a new contract that could be ratified next week.

A union memo sent to workers at one Michigan Delphi plant Thursday said the two sides have agreed to a tentative wage package, although a person close to the negotiations said late Thursday that talks were still dragging on.

While it was unclear when an official announcement might be made, union presidents representing Delphi workers from across the country are expected to come to Detroit today for an informational meeting, according to the memo and several sources familiar with the situation.

The memo, regarding workers at Delphi's Saginaw steering plant, said UAW International officers would be in the plant on Monday "to give information and answer questions on a new national contract proposal agreed to by our top International Officers and Delphi."

Local 699 in Saginaw plans to hold three meetings on Monday -- at 9 a.m., noon and 4:30 p.m. -- at Buena Vista High School across from the Delphi steering complex, because the local union hall couldn't accommodate enough people. Local 699 plans to hold a ratification vote at the hall from 7 a.m. and 5 p.m. Thursday.

Delphi, the UAW and General Motors Corp. have been involved in round-the-clock talks to reach a contract proposal that workers could ratify before July 1.Earlier Thursday, Delphi spokesman Lindsey Williams declined to comment on the status of negotiations. He was not available late Thursday to comment on the memo. A UAW spokesman also declined to comment earlier in the day and was unavailable Thursday night.

A tentative deal is expected to include cash payments in exchange for lower wages for about 4,000 workers who make an average of $27 to $28 an hour.

The payments, or buy-downs, are expected to range from $30,000 and $50,000, and are intended to win support for a deal that could drop hourly wages as low as $14 an hour.

A pact is a key element for Delphi to win financing and emerge from Chapter 11 bankruptcy protection.

Copyright (c) 2007, Detroit Free Press