A U.S. bankruptcy court judge on Wednesday approved Delphi’s request to extend its executive bonus plan through the second half of 2006, despite the objections of the company’s labor unions, which represent 33,000 U.S. factory workers.

The United Auto Workers and five other unions vigorously objected to the extension, warning it could distract from negotiations over steep wage and benefit cuts Delphi is seeking as part of its reorganization. Delphi said it needs the plan to keep its top executives. The bonuses will go to 467 executives if earnings targets are achieved in the second half of the year.

Delphi will continue to need court oversight for any further extensions of the bonus plan.

## Source: Reuters ##

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