UAW official: Half of striking workers will take buyouts
UAW official: Half of striking workers will take buyouts
Two American Axle forging plants likely to close
Automotive News | May 2, 2008 - 4:17 pm EST
DETROIT — The outgoing president of a key UAW local at American Axle & Manufacturing Holdings Inc. said today that he expects at least half of the 3,650 striking workers at the axle maker to take a buyout once a contract is completed.
Adrian King, president of UAW Local 235 representing workers at American Axle’s Detroit complex, said talks probably will last beyond the weekend. He said it appears that metal forging plants in Detroit and Tonawanda, N.Y., will close.
American Axle has other forging plants that pay far lower wages and benefits than strikers at the Detroit and New York plants can accept, King said.
The UAW is negotiating worker buyouts as high as $140,000 each. It also is looking at “buydowns” that would pay $90,000 each to workers to accept wage cuts from $28 an hour to as little as $14 an hour.
King confirmed that he lost a local election for president Thursday, May 1, to local Vice President Bill Alford. He said he is staying in negotiations because his term expires in June.
