UAW makes pitch to end 45-day American Axle walkout

Eric Morath / The Detroit News

DETROIT — The United Auto Workers union presented a broad contract proposal to American Axle & Manufacturing Holdings Inc. Wednesday that counters the company’s demands to cut employees’ combined wages and benefits by more than half.

Adrian King, president of UAW Local 235, which represents workers at American Axle’s Detroit plants, declined to disclose details of the offer.

"We are waiting for a response from the company on our proposal," King said Wednesday. "There is a sense of optimism. We hope they adopt this so we can move forward."

Negotiations are progressing slowly, King said.

The two sides are expected to return to the bargaining table this morning, continuing the first substantive negotiations in weeks in an attempt to end the 45-day strike.

American Axle spokeswoman Renee Rogers confirmed the two sides plan to continue talking, but would not discuss specifics.

Workers on the picket line Wednesday were glad to see talks were under way. Frustration has mounted in recent weeks as strikers heard no word of progress.

"It’s a start," said Jason Costgan, an American Axle worker from Shelby Township. "You’re not going to get anything done if you don’t talk."

Costgan and others strikers’ spirits were lifted as a parade of about 300 UAW-represented Chrysler LLC workers visited American Axle union halls and the picket lines on Wednesday.

Chants of "We are the union, the mighty, mighty, union," echoed between the plant’s cavernous walls as an American flag and two UAW banners led the marching union members along Holbrook Street.

"We will not leave (locals) 235 and 262 alone to fight this battle," said Melvin Thompson, president of UAW Local 140, which represents workers at Chrysler’s Warren truck plant, where Dodge Ram and Dakota pickups are built.

He organized his workers to show their support and then led them in chants using a megaphone. The Warren plant is on temporary shutdown this week.

"These (American Axle) workers built 29 plants for this company and made it very profitable," Thompson said. "The thank you should not be to cut their wages in half."

Some 3,650 UAW members at five American Axle factories in Michigan and New York walked off their jobs Feb. 26 in a dispute with the Detroit-based auto parts maker over proposed wage and benefit cuts.

The supplier says its $73.48 all-in hourly labor cost is not competitive with rivals, many of which cut costs through bankruptcy. American Axle wants to get its labor costs, including health care and retirement, down to $20 or $30 an hour.

The union says such concessions are not warranted given American Axle Chief Executive Richard Dauch’s 2007 total compensation of $10.2 million and company profits of $37 million last year.

Chrysler workers said they joined the march because this deal could set a precedent for future contracts.

"It’s them today, us tomorrow," said Ericka Jones, an assembler at Warren Truck. "We have to stick together — it’s called solidarity."

Dave Hodge, a striking quality operator at the American Axle plant, shook hands with several dozen Chrysler workers, many of whom slapped him on the back or promised to return with food for the picketers.

"It feels real good — it brings us back to life," said the Detroit resident, who is entering his seventh week on the picket line.

Hodge said he’s grown frustrated with company officials’ comparisons to bankrupt suppliers, while seemingly not recognizing that American Axle is profitable.

"I can’t accept having my pay cut in half," Hodge said. "We’ll stay out as long as it takes to get a fair deal."