Delphi, GM and the UAW Are Close To A Deal, Not (GM)

Mar. 9.06 | About: General Motors (GM)

It appears that news that the GM bailout of the Delphi UAW workers was premature. The UAW is now saying that the meetings are simply "routine". Delphi is threatening to go to the courts on March 31 to get the union contracts cancelled.

None of this is good news for GM. It could be left holding the bag for all of the healthcare costs for Delphi, which is into the billions of dollars.

However, it could be worse. If the UAW strikes Delphi and shuts it down, the shutdown of GM's plants is not fair behind. And, that would throw a massive wrench into the GM restructuring plan.