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Tentative Agreement Could End American Axle Strike
02:12 p.m. EDT, May 22, 2008

Today United Auto Workers members employed at American Axle and Manufacturing Holdings Inc. will vote on ratification of an agreement with the company that would cut wages and end the three-month strike that has effected General Motors' ability to maintain their inventory.

The 3,650 UAW workers at American Axle facilities in Michigan and New York have been off the job since February 16, an action that has caused GM to partially halt operations at 30 of their plants in North America due to a shortage of parts. GM has ponied up about $218 million to ensure that an agreement between the two parties is reached.

The tentative agreement between the union and American Axle was hammered out on May 16 and includes a four-year contract, provisions for plant closings, and large wage reductions across the board. There are worker buyouts, retirement packages, and cash buy-downs included in the offer. Essentially American Axle wants to trim its work force by some 2,000 positions with more than 900 such removals from its Detroit plant where gears and axles are manufactured.

Hourly pay under the terms of the agreement would be cut to $10 to $26 and the deal includes payments of as much as $105,000 over a three year period to workers who stay on the job. Some holidays would be taken away and senior workers would forfeit a week's vacation as well as taking reductions in shift premiums among other losses.

UAW President Ron Gettelfinger indicated that union negotiators did not like the deal, but felt that under the circumstances they would not be able to get anything better for the membership. Local union leaders disagreed and meetings Sunday night in Detroit grew heated as a result.


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