Tuesday, February 28, 2006
Auto analyst says Tower strike likely
Detroit Free Press
Unions representing hourly workers at Tower Automotive Inc. are likely to strike the Novi-based auto-parts supplier in two weeks to show resolve for higher-stakes showdowns at Delphi Corp. and General Motors Corp., one auto analyst predicts.
Tower, a global supplier of vehicle frames and components for every major auto manufacturer, asked a bankruptcy judge Monday to cancel its union contracts. That would allow Tower to cut $40 million a year in hourly wages and benefits.
On Jan. 30, Tower's three unions [...] approved a strike and said they would strike if Tower nullifies union contracts.
Brian Johnson, an analyst with Sanford C. Bernstein, said he does not believe Tower will reach an agreement with its unions.
'We believe that the key unions are likely to follow through on strike threats in order to send a signal to GM and Delphi that if they choose to use bankruptcy to get rid of contracts, they may strike,' Johnson said. 'But the strike may prove to be short-lived.'
Unions representing hourly workers at Tower Automotive Inc. are likely to strike the Novi-based auto-parts supplier in two weeks to show resolve for higher-stakes showdowns at Delphi Corp. and General Motors Corp., one auto analyst predicts.
Tower, a global supplier of vehicle frames and components for every major auto manufacturer, asked a bankruptcy judge Monday to cancel its union contracts. That would allow Tower to cut $40 million a year in hourly wages and benefits.
On Jan. 30, Tower's three unions [...] approved a strike and said they would strike if Tower nullifies union contracts.
Brian Johnson, an analyst with Sanford C. Bernstein, said he does not believe Tower will reach an agreement with its unions.
'We believe that the key unions are likely to follow through on strike threats in order to send a signal to GM and Delphi that if they choose to use bankruptcy to get rid of contracts, they may strike,' Johnson said. 'But the strike may prove to be short-lived.'
