Auto Parts Maker Seeks to Void Labor Contracts ; Delphi Also Will Cut 8,500 Jobs, Close N.J. Plant

Summary

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DETROIT Auto parts supplier Delphi Corp. unveiled a broad restructuring plan Friday that would cut 8,500 salaried jobs, shut or sell a third of its plants worldwide, including one in New Jersey, and asks a Bankruptcy Court judge to void its labor agreements in a move that sent a shudder through the auto industry.

The United Auto Workers warned "it will be impossible to avoid a long strike" if the judge agrees to void the contracts and Delphi imposes its most recent wage proposal. A strike could put General Motors Corp., Delphi's former parent and largest customer, perilously close to bankruptcy and hurt other automakers and smaller suppliers as well.

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Extract

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Auto Parts Maker Seeks to Void Labor Contracts ; Delphi Also Will Cut 8,500 Jobs, Close N.J. Plant

GM has close ties to Delphi, which plans to close a battery factory in New Brunswick. GM accounted for just under half of Delphi's $26.9 billion in revenues last year, and is required to pay some of Delphi's pension obligations if Delphi is in bankruptcy. The world's largest automaker already is struggl...

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