Showdown Looms As Delphi Bids To Void Labor Contract

Law360, New York (March 31, 2006, 12:00 AM EST) -- With a massive strike on the horizon, bankrupt auto parts supplier Delphi Corp. has forged ahead with its anticipated and highly controversial restructuring plan, asking a federal bankruptcy court on Friday to void its labor contracts in a move that will spurn layoffs of up to 8,500 salaried workers and the sale or closure of 21 of its 29 U.S. plants.

The move could cripple the U.S. auto industry and nudge General Motors Corp., Delphi’s former parent and largest customer, closer to Chapter 11 bankruptcy....
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