NEW YORK (Reuters) - The board of directors of bankrupt auto parts maker Delphi Corp. (DPHIQ.PK: Quote, Profile, Research, Stock Buzz) is hopeful of reaching a negotiated labor settlement as part of its reorganization that would be "reasonable for all parties," a Delphi director said on Wednesday.
Analysts and investors have been worried about the risk of a strike at Delphi since it would quickly halt production at its former parent and largest customer General Motors Corp. (GM.N: Quote, Profile, Research, Stock Buzz), at a time when the No. 1 automaker is struggling to restructure.
"I think they're going to find a path that's reasonable for all parties," David Farr, a Delphi director and chief executive of Emerson Electric Co. (EMR.N: Quote, Profile, Research, Stock Buzz) said at the Reuters Manufacturing and Transportation Summit in New York.
Farr said Delphi's board hoped a negotiated deal could be reached between Delphi, GM and the United Auto Workers union.
"That's the view of the board. We're all working to come up with a solution. People are working on all sides -- labor, GM, Delphi and the courts," Farr said.
Farr's comments came a day after the UAW said its U.S. hourly workers had voted overwhelmingly to authorize union leaders to call a strike should Delphi toss out its labor contracts.
The union represents about 24,000 Delphi blue-collar workers at 21 U.S. facilities, accounting for almost three-quarters of Delphi's 33,000 U.S. hourly workers overall.
Delphi in late March filed court papers to void its union contracts and to reject thousands of GM parts contracts, a move that some analysts have said has forced all parties to move more quickly toward a resolution.
GM Chairman and Chief Executive Rick Wagoner recently called resolving the dispute between Delphi and the unions an urgent priority, and analysts quoted GM's Chief Financial Officer Fritz Henderson as saying last week he expected a deal with Delphi and the UAW within 60 days. Continued...
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