Delphi is the largest US firm to file for bankruptcy protection

Delphi had proposed to give executives cash bonuses and stock options in a bid to prevent them leaving the firm.

But the United Auto Workers Union has filed an objection to the plan at the New York bankruptcy court, dubbing it "an imprudent use of... assets".

Delphi filed for Chapter 11 bankruptcy protection early last month.

The move allows a company to continue trading as it reorganises its finances.

Delphi became the biggest US firm to file for Chapter 11 after it failed to win concessions from unions and failed to secure a multibillion-dollar bailout from its former parent company, General Motors.

The group made a loss of $741m in the first half of 2005, blaming weak demand.

Cutbacks

It is in the process of restructuring its finances, but warned that it will have to cut jobs, wages and benefits.

"At a time when Delphi is proposing deep cuts in wages and benefits and contemplating a severe contraction of its domestic operations that could leave tens of thousands of employees... without jobs, deep resentment and anger over a program valued at over $500m can neither be understated nor should it be ignored," UAW said in its objection to Delphi's sweetened reward package.

"UAW opposes the... motion because it is grossly excessive and an imprudent use of estate assets," its court filing added.

A court hearing on 29 November had been expected to consider the bonus plans issue, but following opposition Delphi has asked for more time to consider the objections.

The matter is now expected to be heard at a session in January.