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.

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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.

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