Delphi Workers Authorize Strike

The UAW says 95% of votes cast approved a strike if the auto-parts maker voids its labor contracts.
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The union representing

Delphi

(DPHIQ)

hourly workers voted to authorize a strike should the auto-parts maker void its labor agreements in bankruptcy court proceedings.

The United Auto Workers union said Tuesday that 95% of the votes cast at its Delphi-represented facilities authorized the union to call a strike. The move, which was widely expected, comes after Delphi has already filed motions to reject wage agreements and cut certain retiree benefits as it looks to exit bankruptcy protection.

A strike would be disastrous for Delphi and its former parent,

General Motors

(GM) - Get Report

, which relies on the stream of Delphi's auto parts to make its cars.

The three sides have been negotiating over the labor pacts, but hearings began last week in bankruptcy court in New York evaluating Delphi's motions to cut the collective-bargaining agreements. According to the union, the hearings will resume May 24.

Shares of General Motors recently were down 54 cents, or 2%, to $25.66.