Delphi Corp., has given the UAW union a new proposal for cuts in wages and benefits that it indicated may be its last. According to a report in the Detroit Free Press, the auto supplier, which filed for Chapter 11 bankruptcy protection in October, set a Thursday deadline to reach an agreement on reduced labor costs. Company CEO Steve Miller said that if a deal is not reached by week's end, he will file a motion to eliminate union contracts. Details of the new proposal were not divulged.
If Delphi does attempt to eliminate union contracts, the UAW said it would strike, according to the report. This could force Delphi out of business and would likely drive its largest customer, General Motors, to seek bankruptcy protection. The report said the UAW has summoned its local leaders to a Tuesday meeting in Detroit to discuss Delphi's proposal.
