UAW Authorizes Strike Against Delphi

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nited Auto Workers members have voted to authorize a strike against auto supplier Delphi Corp. if the company scraps its labor agreements, the Associated Press reported.

More than 95% of UAW members who voted at 21 U.S. plants approved the strike authorization measure, AP said.

A strike could have severe consequences for General Motors Corp., Delphi’s former parent company and largest customer, AP reported. While the vote does not mean a strike is imminent, it allows the UAW to call a strike if it feels one is needed as the sides bargain over wages.

Delphi, which filed Chapter 11 bankruptcy in August, has asked a court to allow it to void its union contracts as it struggles for solvency. (Click here for previous coverage.)

A Delphi spokesman told AP the company intends to keep negotiating with the UAW.

GM also said it will keep negotiating despite the vote, AP reported. GM has offered to fund buyouts for some Delphi hourly workers and could also be responsible for retiree benefits or supplemental payments to boost wages, AP reported.