UAW STRIKE AT AMERICAN AXLE

American Axle: UAW offers still uncompetitive
 

Automotive News | April 22, 2008 - 6:15 pm EST

DETROIT (Reuters) — American Axle & Manufacturing Holdings Inc. said on Tuesday the UAW has rejected several company wage and benefit offers that are "considerably" above market rates during talks aimed at ending an eight-week strike.

American Axle said the UAW’s latest proposal, offered on April 14, was "still not market competitive" and repeated its prior statement that some or all of the striking plants may be closed if workers do not accept steep wage and benefit cuts.

The union’s proposal offered wages and benefits nearly double the market rate set by the union with the company’s competitors in the United States, American Axle said in a statement.

The company cited all-in wage and benefit agreements totaling about $30 per hour between the UAW and Dana Holding Corp., FormTech, China-owned Neapco and India’s Bharat Forge Ltd. in making that argument.

A union representative could not be reached immediately for comment on the American Axle statement.

American Axle said it was encouraged that the company and union had reached tentative agreement on many issues during effective discussions last week.

About 3,650 UAW-represented workers went on strike at five American Axle plants in the United States on Feb. 26. Talks are continuing between the company and the union.

The strike has forced General Motors to at least partly idle about 30 plants in North America because of parts shortages from its key supplier. American Axle also relies on GM for about 80 percent of its annual revenue.

The walkout mostly has affected GM’s production of large sport utility vehicles and pickup trucks that have been selling slowly because of the U.S. economic downturn and high fuel prices.

ENLARGE

The UAW has been on strike at American Axle since Feb. 26. Photo credit: Rebecca Cook/Reuters