Delphi Gives Court OK to End Labor Deals
From the Associated Press
Auto parts supplier Delphi Corp. gave a federal Bankruptcy Court the authority to immediately cancel its labor agreements, an action that could lead to a devastating strike.
Adding to Delphi’s problems, General Motors Corp. will pay lower prices for parts from Delphi after the carmaker failed to reach an agreement to continue paying higher rates to the auto supplier, Delphi said in a filing with federal regulators.
The two companies extended until June 23 a deadline for blue-collar workers to accept offers for buyouts and early retirements.
Delphi, GM’s former parts division and largest supplier, filed for bankruptcy protection in October. A month later, GM agreed to temporarily forgo scheduled price reductions on Delphi parts.
