From aftermarketNews Staff & Wire Reports

TROY, Mich. -- It has been reported that the judge handling Delphi Corp.'s Chapter 11 case has approved the parts maker's proposal to freeze its pension plans as part of its process of emerging from bankruptcy.

According to a report from the Associated Press (AP), Delphi has been permitted to freeze the plans for salaried and hourly workers and replace them with new ones. However, changing the hourly workers' pensions still requires union approval, which is needed by Tuesday, according to Delphi attorney Jack Butler.

Accelerating the freezing of its pension plans will allow Delphi to cut costs faster and emerge from bankruptcy protection quicker, while also protecting the benefits of its current and former workers, said the AP report.