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NEW YORK (AP) - A federal bankruptcy court judge on Friday approved payment of attorneys and other professionals representing auto parts maker Delphi Corp., which is seeking sharp pay cuts from its unionized work force as part of a financial reorganization so it can compete with lower-cost suppliers.
Judge Robert Drain of U.S. Bankruptcy Court in New York also approved the company's request for clearance to pay its employees, including payments that may be required under an executive severance package that had drawn criticism from union leaders. Last month, the company defended its decision to boost a severance package for 21 of Delphi's top executives the day before it filed for bankruptcy protection.
Under the new agreement, executives will be eligible for 18 months of pay if Delphi lays them off. Previously severance packages were capped at 12 months. In exchange, executives signed agreements promising not to work for competitors for the 18-month period.
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