Delphi asks court to throw out union contract

topic posted Fri, March 31, 2006 - 11:05 AM by  Chris
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The outcome of this Delphi bankruptcy case could spell serious peril for organized labor in America. The loss of unions at Delphi coupled with their loss of positions if GM goes bankrupt could completely castrate the UAW's already waning influence.

money.cnn.com/2006/03/31/...hi/index.htm

Delphi actions could bankrupt GM
Auto parts maker asks bankruptcy court to void contracts, plans to close or sell 21 plants; is a strike coming that could force GM into bankruptcy?
By Chris Isidore, CNNMoney.com senior writer
March 31, 2006: 1:28 PM EST

NEW YORK (CNNMoney.com) - Delphi announced plans Friday to throw out its union contracts and shed more than 28,000 workers as it shut down most of its U.S. operations -- moves that could spark strikes at the auto parts maker and a possible bankruptcy filing at its biggest customer, General Motors.

Delphi (Research) filed motions with the federal judge overseeing its bankruptcy proceedings to shed contracts with the United Auto Workers union (UAW) and another union that it says it can no longer afford. It also announced plans to sell or close 21 of its 29 plants.

But it said it was encouraged by progress in talks with the unions, adding it's hopeful an agreement can be reached on concessions before a court hearing scheduled for early May.
posted by:
Chris
Milwaukee
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