Delphi Prepares to Ask Judge to Void Labor Contracts

Bloomberg reports:

Delphi Corp. is prepared to ask a bankruptcy court judge to void its labor contracts today, heightening prospects for a strike that could cripple its former parent General Motors Corp.

Delphi Chief Executive Officer Steve Miller told United Auto Workers officials that he would make the filing by 9:30 a.m. New York time, the union said in a March 29 message to its members. The UAW has pledged to strike if the contracts are nullified.

A prolonged walkout may lead to the bankruptcy of GM by cutting off the flow of auto parts from its biggest supplier and shutting down its factories, analysts say. Miller began demanding drastic wage and benefit cuts following Delphi's Oct. 8 bankruptcy petition. The union this week called Delphi's latest proposal ``devastating'' to Delphi workers and their families.

The saga continues.