The Detroit News reported Wednesday that the UAW has rejected Delphi Corp.'s latest offer, saying that it would have a "devastating impact" on the parts supplier's workers. However, in an effort to stave off Delphi's threat to begin voiding its labor contracts by Friday if a labor agreement hasn't been reached, the UAW offered an olive branch to the company, saying it was willing to keep working on the issue with Delphi if the company withdraws its Friday deadline.
Should Delphi follow through on its threat to ask the court to void its labor contracts, UAW leaders indicated that a strike is likely. The tough talk led investors to hammer GM's stock price, which fell more than 4 percent in Wednesday morning trading. A strike would be devastating to General Motors, Delphi's biggest customer.

[Sources: Detroit News, Reuters]

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