UAW threatens legal action against GM after Delphi retirees left off $500 lump sum payment

United Auto Workers has sent a letter to General Motors officials threatening legal action over what it claims is a violation of its new national agreement impacting Delphi retirees.

A letter sent to GM officials from UAW Vice President Mike Booth claims that the automaker has "unilaterally decided to exclude a select group of UAW-GM retirees who receive a Delphi Benefit Guarantee 'Top Up' benefit from receiving the $500 Lump-Sum payment."

Booth says in the letter that the decision to exclude these retirees is a violation of the 2023 National Agreement.

Booth claims the denial of the funds is "contrary to the past practice established by the parties in 2015 when this same group received the bargained retiree payments along with all other UAW-GM retirees."

The UAW leader told officials that if they are unable to come to terms over the non-payment, the union would be forced to "pursue all available contractual and legal remedies on behalf of the impacted Retirees and Surviving Spouses."

The Troy, Michigan-based company Delphi was spun off from GM in 1999 and had a local branch in Warren. However, the automotive electronics and component maker ended up filing for bankruptcy in 2005. In 2001, the auto parts maker had more than 71,000 US employees.

The letter also points out that some General Motors retirees received its $500 lump-sum payment on December 15; however, others did not receive the funds.

According to the letter, some retirees were inadvertently left off the list, and GM has told the union it will rectify the situation caused by "administrative issues" and will have those funds sent out by January 19.

21 News has reached out to the UAW and the GM officials for comment and for the exact number of former employees or spouses impacted by this decision but has not heard back as of the writing of this story.