Union slams Axle plans

UAW negotiator calls proposed wage rollbacks, plant closures too drastic; supplier defends offer.

Eric Morath / The Detroit News

DETROIT — American Axle’s demands for deep wage cuts and plans to close all but two of its striking plants are too drastic for the United Auto Workers to accept, according to one union negotiator.

Dana Edwards, a negotiator and shop chairman for Local 235, which represents striking American Axle & Manufacturing Holdings Inc. workers in Detroit, said the UAW is willing to give back on wages — $5 to $8 per hour, depending on job and plant — but the Detroit-based supplier wants larger rollbacks and is seeking to close a majority of the striking plants.

"We’ve bent over backwards to give them very decent proposals and they’re talking about closing additional plants," Edwards said. "It just blows me away."

Edwards’ comments came on the same weekend that UAW president Ron Gettelfinger said negotiations took a negative turn Friday evening after American Axle proposed closing a Cheektowaga, N.Y., plant. The union and company had already agreed to close forge sites in Detroit and New York.

About 3,650 American Axle workers went on strike Feb. 26, resisting demands for reduced wages and benefits.

Late last month, the company proposed a deal that called for workers to accept wage cuts ranging from $5 to $14 per hour, depending on position, and the closure of the forge plants, in exchange for a $140,000 buyout, or a $90,000 buydown bonus to stay at a lower wage.

Under the company’s latest proposal, only Detroit Gear and Three Rivers (Mich.) Driveline would remain open among the six striking plants — American Axle’s original factories when it spun off from General Motors Corp. 14 years ago.

Prior to the strike, a Buffalo, N.Y., plant was shuttered.

Company spokeswoman Renee Rogers said she wouldn’t discuss any plans to close plants, but said the company has offered higher wages than what its competitors pay.

"We made several proposals that are considerably higher than the agreements the UAW gave to competitors, including Dana (Corp.)," she said.

"That’s because we want to get this over and get people back to work."

Edwards said the plan to close Cheektowaga is a company tactic to strong-arm Detroit Gear workers into accepting deeper wage cuts.

American Axle management is "pitting us against each other," Edwards said. "To me, that’s flat out foul."

In general, workers in Detroit are paid higher wages than peers at most of American Axle’s other factories.

Rogers said the two sides did meet Sunday and expect to continue talking this week.

A strategy where a company seeks to trade gains at one plant for losses at another is not uncommon during a labor dispute, said Gary Chaison, a professor of industrial relations at Clark University in Worcester, Mass.

"It breaks up solidarity," he said. "And the union’s only real power comes if all the workers stick together."

Adding factory closures on top of wage rollbacks puts UAW leaders in a difficult spot, Chaison said.

"Gettelfinger wants to tell members that if they give on wages, their jobs will be secure," he said. "But that’s hard to say when plants are closing."

Friday’s breakdown marks at least the third time that talks have gone sour after a deal appeared to be close.

Striker David LeGrone said uncertainty has many workers looking to move on.

"People have gotten tired and have started looking for new jobs and just plan on taking a buyout when an agreement is reached," he said, adding he’s among those seeking new employment in a tough job market.

"They want a buyout, in one lump sum, so they can move or go back to school … there’s no telling what will happen to this company."