Parts Maker and IUE-CWA Sign Labor Contract

TROY, Mich., Nov. 25, 2003 -- Delphi Corp. today received notice of the ratification of its new labor contract with the IUE-CWA, the Industrial Division of the Communications Workers of America, AFL-CIO, CLC. It covers Delphi IUE-CWA employees for the next four years.

"We are very encouraged by the agreement," said J. T. Battenberg III, Delphi's chairman, CEO and president. "It provides Delphi with an important platform to further enhance Delphi's competitiveness in the short term, including agreements on attrition programs and opportunities to address troubled operations."

The contract includes the following highlights:

* Economics - The agreement provides a $3,000 upfront payment with no wage increases in year one, a 3 percent lump sum payment in year two, and 2 and 3 percent wage increases in years three and four, respectively. The contract also provides 2 percent annual pension benefit increases for eligible employees and $800 annual lump sum payments for retirees. Finally, the contract includes some important changes in prescription drug coverage and other healthcare changes.

* Consolidations - "We have no explicit agreement from the IUE-CWA on closures," Battenberg noted. "However, we have notified the union of our intent to raise the issue of plant consolidations, with the goal of increasing Delphi's competitiveness by addressing under-performing operations."

* Competitive wage and benefit structure - The contract provides Delphi with the ability to build on existing local wage and benefit structures, which already provide competitive wages and benefits to 3,000 Delphi IUE-CWA employees. "We are optimistic this contract offers the means for further increasing the competitiveness of our compensation, which is critical to helping Delphi's U.S. facilities win new business," Battenberg said.

* Agreements on attrition - Consistent with current and anticipated Delphi business needs, the contract includes an agreement to reduce headcount at targeted facilities through the use of incentive-based attrition programs. These programs include retirements, as well as potential opportunities for employees to return to GM, or "flowback."

Battenberg added, "We are optimistic that the new contract will help Delphi and the union work toward our common goal -- a strong, competitive Delphi that is able to provide good jobs to our employees."