Delphi delays court filing to continue talks with GM, unions
Friday, February 17th 2006, 8:39 am
By: News On 6
DETROIT (AP) _ Auto supplier Delphi Corp. said Friday that it will delay for the third time an effort to reject its union contracts so it can continue talking about a buyout deal with General Motors Corp. and its unions.
Delphi, which filed for bankruptcy in October, had threatened to ask a bankruptcy court to reject its union contracts on Friday. The company said it will delay that filing and try to settle with GM and its unions by March 30. If no agreement is reached, Delphi said it will file a motion with the court on March 31.
The move could help avert a strike that would cripple GM, Delphi's former parent and largest customer. The United Auto Workers had threatened to strike if the judge approved Delphi's request to void its contracts.
``While major obstacles and difficult issues remain to be resolved, the discussions to date with GM and our major unions helped frame the concerns and objectives of each organization,'' Delphi Chairman and CEO Robert ``Steve'' Miller said in a statement.
``As we have said before, we remain committed to reaching a consensual agreement. This deadline should provide us sufficient time to deal with the complexities inherent in fashioning practical and workable solutions, and an effective agreement that works for all of us.''
Friday marked the third time Delphi has delayed the filing while it talks with GM and its unions. Delphi says the wages and benefits for its 34,000 U.S. hourly workers are not competitive.