Union rejects wage concessions at Delphi

The United Auto Workers union rejected wage concessions proposed by Delphi Corp. and a group of private equity firms, jeopardizing a $3.4-billion investment aimed at pulling the auto-parts maker out of bankruptcy protection.

“It was a pathetic offer,” UAW Vice President Cal Rapson said of the 29-page offer from the company and six investors led by Cerberus Capital Management.

If the investors walk away, Delphi may ask a U.S. Bankruptcy Court judge to scrap the UAW contract. The union threatens to strike if the contract is voided, which could cut off parts to General Motors Corp., Delphi’s biggest customer.