Tower Automotive has threatened to seek court approval to void labour contracts unless talks with the United Auto Workers (UAW) union on wage cuts and health-care costs make some progress, according to Bloomberg News.

Chief executive Kathleen Ligocki told the news agency that it has set a deadline of 1 May to reach an agreement. Talks have reportedly been stalled for four months.

Tower is asking for wage cuts of up to 23%. The UAW, the International Union of Electrical Workers-Communications Workers of America and the United Steelworkers of America have all threatened to strike if Tower voids the contracts.

A strike would threaten production at Ford.