Union raises strike threat at Delphi once again

DETROIT — The United Auto Workers, representing thousands of strike-ready workers, rejected a wage contract offer by struggling auto parts giant Delphi Corp. — the largest supplier to GM.

UAW Vice President Cal Rapson told reporters this week that the company’s latest offer was “insulting.”

A Delphi spokesman would not confirm that an offer had been made, but said the company, along with the investors and GM, are still bargaining.

Also this week, union President Ron Gettelfinger said he’s tired of “playing around” with Delphi and promised a strike as early as May if the company continues with plans to void its labor contracts in court, reports Associate Press.

Delphi, which says it is suffering from high labor costs and a major slowdown in the North American auto industry, has been operating under bankruptcy protection since October 2005.

The company has been operating with a strike cloud over its head since last summer, when it announced it would forge ahead with plans to void some its current contracts with the union and dramatically cut wages of the remaining 12,000-plus workers as part of a restructuring plan.

In June, a New York bankruptcy court gave Delphi an additional six months to exclusively file its reorganization plan.

According to AP, a settlement between Delphi and its unions is needed before equity firms Appaloosa Management LP, Cerberus Capital Management LP and Harbinger Capital Partners Master Fund will invest up to $3.4 billion that Delphi needs to emerge from bankruptcy protection.

— with files from Associate Press