Delphi's Union Showdown
By Alex Taylor III

(FORTUNE Magazine) – With General Motors' survival hanging in the balance, a federal bankruptcy judge in New York will decide whether to let Delphi void its union contracts. Don't figure on a ruling before the end of June. If the judge goes along with Delphi chairman Steve Miller's request to cut wages from $27 an hour to $16.50, the United Auto Workers has promised a "long strike." That would cripple GM, which relies on Delphi for steering wheels, brakes, and myriad other parts, and would deal a potentially fatal blow to the fragile turnaround being engineered by GM chairman Rick Wagoner. Analysts figure production lost in a strike would cost GM $1 billion a week and bleed it dry of cash by autumn.

Kate Bonamici and Barney Gimbel contributed to this article.