UAW workers strike American Axle
The strike sends 3,650 American Axle workers in Michigan and New York to the picket lines and threatens to snarl truck production at General Motors Corp., the parts maker's largest customer.
UAW President Ron Gettelfinger said in a statement that American Axle is looking to dramatically reduce workers' benefits and cut their hourly wage to $14 an hour. He accused the company of failing to provide the union with enough information for it to evaluate the company's proposal. The UAW has a proven record of working with companies to improve their competitive position and secure jobs," Gettelfinger said. "But cooperation does not mean capitulation. Our members cannot be expected to make the extreme sacrifices American Axle is asking for with nothing in return."
The company, in a statement, said labor costs, including wages and benefits, add up to $70 an hour when the industry averages $20 to $30 and hour.
"All of the changes we have proposed have been accepted by the UAW in agreements with our competitors in the United States," Chairman Richard Dauch said.
Dozens of workers in Detroit grabbed picket signs and walked off the job immediately after the contract's 11:59 p.m. expiration time passed with no new deal or contract extension. The last contract was reached in 2004 after a one-day walkout.
GM officials have been closely watching the situation, but wouldn't comment on the talks.
Bargaining teams have been wrestling with the same issues that led to brief strikes earlier this year against GM and Chrysler LLC before the union cut deals with Detroit's automakers that drastically reduced labor costs in the face of competition from leaner foreign-based rivals. Detroit News