In hopes of preventing strikes, auto parts
manufacturer Delphi has agreed to hold off on its union demands, just weeks
after the Chapter 11 company threatened to sever its union contract
According to the Chicago Tribune, the move is being viewed as “breathing
room” for the company, which filed for bankruptcy protection Oct. 8. The
company had asked a federal judge to void its union contracts by Dec. 16, but
has withdrawn the request to avoid costly potential strikes and labor disputes.
Meanwhile, Delphi is trying to negotiate
lower wages with its unions, including the United Auto Workers. The proposal
would cut union employees’ wages from $27 an hour to about $12.50 an hour, the Tribune reported.
Earlier in the week, General Motors, which owns
$15.4 billion in stock in the company, gave Delphi a price break, which also
gave some leniency to the struggling parts manufacturer.