This is so big for metal stampers who do any automotive work. If Delphi strikes and stops GM production, it’s going to have a ripple effect all through metal stamping.
Auto parts company Delphi Corp. asked a U.S. court to void its collective agreements, a move that could lead to strikes at the company.
Delphi, which is the largest parts maker in the U.S., said it needs to void its labour deals with the The International Union of Electronics Workers-Communications Workers of America and the United Auto Workers union in order to get its costs down. Delphi has been in bankruptcy protection since last October.
As part of a strategy unveiled Friday, Delphi said it expects to cut its global salaried workforce by as many as 8,500 employees, or 25 per cent, as a result of product reductions and cost cutting.
‘We are clearly focused on Delphi’s future,’ said Delphi chairman and CEO Robert S. ‘Steve’ Miller in a statement. ‘Emergence from the Chapter 11 process in the U.S. requires that we make difficult, yet necessary, decisions.
The unions have threatened to go on strike if the company tears up the contracts. A strike could cripple the auto sector, especially General Motors. GM, the former parent company of Delphi, and its major customer, is also in a financially precarious position and is rumoured to be headed for Chapter 11 bankruptcy protection filing.