Judge Says Dana Should Continue Negotiations With Union

April 4, 2007 8:00 AM, EDT

A U.S. bankruptcy judge gave auto parts manufacturer Dana Corp. and the United Steelworkers Union until April 13 to negotiate a new labor contact, Bloomberg News reported Tuesday.

Following a five day hearing regarding Dana’s existing labor agreement with USW, Judge Burton Lifland declined to render a decision and urged continued negotiations, Bloomberg said.

Dana, which filed for bankruptcy in March 2006, wants to drop its current contract with USW and end medical benefits for retired union workers as part of its restructuring efforts, according to Bloomberg.

Ted Stenger, who is leading Dana’s restructuring effort, said the company could save up to $180 million by cutting off its current labor agreement and curtailing retiree health benefits, according to Bloomberg.

Bruce Simon, an attorney with USW, told Bloomberg that Dana workers would strike if Lifland allows the company to rescind its current labor contract.

Dana’s creditors, meanwhile, also called for negotiations to continue, Bloomerg said.