Most of the talk about labor unrest in the auto industry has focused on parts giant Delphi Corp. But another showdown is shaping up at Tower Automotive Inc.
Tower, a vehicle framing and steel parts maker in Novi, Mich., has been in Chapter 11 reorganization for more than a year. On Jan. 4 it filed motions to void many of its union contracts. A hearing was scheduled for Monday, Feb. 27, on those motions in U.S. Bankruptcy Court in New York.
Tower, the UAW and its other unions resumed negotiations on Friday. It appeared likely that talks would continue through the weekend.
Union workers last month voted to strike at nine Tower plants in the Midwest if the court allows the company to void the contracts. The supplier's hourly unionized workers make $13 to $15 an hour. Tower has about 6,000 U.S. workers, two-thirds of whom are covered by union agreements.