GM to pay up to $200M to help end American Axle strike

[Murrow]

GM to pay up to $200M to help end American Axle strike

By TOM KRISHER
AP Auto Writer

DETROIT (AP) -- General Motors Corp. has agreed to kick in up to
$200 million to help bring an end to a bitter 10-week strike at
parts supplier American Axle and Manufacturing Holdings Inc.
The automaker said Thursday in a government filing that the
money would go for temporary payments to buffer reduced wages for
the workers, as well as employee buyout and early retirement
packages in the event of a deal.

About 3,600 United Auto Workers at five American Axle factories
have been on strike since Feb. 26 in a dispute over the company's
quest for lower wages and benefits.

The strike has crippled GM's production of pickup trucks and
sport utility vehicles and hurt its bottom line. About 30 GM
factories have been either fully or partially closed due to the
strike.

American Axle and the UAW were still talking as of Thursday
afternoon, American Axle spokeswoman Renee Rogers said.

"We are hopeful that GM's financial assistance to help fund the
buyouts, retirement incentives and buy downs...will facilitate an
expedited resolution to the international UAW strike," Rogers
said. "It's been costly and disruptive. A quick return to work
will be a win-win-win for everybody."

American Axle said in a separate filing with the U.S. Securities
and Exchange Commission that the aid from GM is contingent on a
quick end to the strike.

"We believe the offer will help bridge the gap between American
Axle and the UAW and that they will be able to reach a mutually
satisfactory agreement in the near future," GM spokesman Dan
Flores said.

GM shares fell 30 cents to $21.10 in late afternoon trading
Thursday while American Axle shares gained 38 cents to $21.75.


(Copyright 2008 by The Associated Press. All Rights Reserved.)

[NfamousZ24]

I thought GM didn't have money to spend? LOL who am I kidding, I know better.

So this means I might be comming back to work sooner than I hoped. Then I will go back to work just to be told after awhile that I am going to get laid off again because they are going to lay off 2nd shift at my plant. ( Nothing has been said about layoffs at my plant Moraine Assembly, But when you can make in 1 week what you sell in a month.........)

[rozz]

Oh, please noooo...don't do it GM! GM can still get more part from the American Axle's Mexico plant, right?

[tgagneguam]

Originally Posted by NfamousZ24

I thought GM didn't have money to spend?...

For better or for worse, I was thinking the same thing when I read the headlines earlier in the day.

Now remember, there was no money a year ago to properly advertise the crop of new Saturns. Right. I didn't believe it then, nor do I believe it now. It's all about priorities; consistently developing and marketing brand identity is not a priority. They say it is, but management's actions speak otherwise.

[NfamousZ24]

Originally Posted by tgagneguam

For better or for worse, I was thinking the same thing when I read the headlines earlier in the day.

Now remember, there was no money a year ago to properly advertise the crop of new Saturns. Right. I didn't believe it then, nor do I believe it now. It's all about priorities; consistently developing and marketing brand identity is not a priority. They say it is, but management's actions speak otherwise.

Plus I have known for years that GM is good at hiding money. When Ford and Chrysler were giving great profit sharing. GM comes out "Due to Accounting Changes we can only pay $300 profit sharing" When the others were getting $5k - 7k bonus. ( I am in no way mad at GM as long as they pay my dividens on the stock that I own) Have you ever notice that they always have a hard time announcing their numbers and usually has to change the figures years down the road, Or just report way late. Then they still get it wrong. I am not saying that their accountants are bad at what they do. It must be hard to find ways to hide so much money, And or move so much money around.

[lam]

Originally Posted by NfamousZ24

Plus I have known for years that GM is good at hiding money. When Ford and Chrysler were giving great profit sharing. GM comes out "Due to Accounting Changes we can only pay $300 profit sharing" When the others were getting $5k - 7k bonus. ( I am in no way mad at GM as long as they pay my dividens on the stock that I own) Have you ever notice that they always have a hard time announcing their numbers and usually has to change the figures years down the road, Or just report way late. Then they still get it wrong. I am not saying that their accountants are bad at what they do. It must be hard to find ways to hide so much money, And or move so much money around.

ehh....GM has $23.9 billion of cash.

[nadepalma]

Got to love those UAW boys - even after they strike at some of GM's plants after their contracts were ratified last year, they indirectly cost GM MORE MONEY by striking an important parts supplier.

Unreal.

I wonder if anyone at the UAW wonders if the strike carrying on as long as it has will end with GM moving many future contracts away from American Axle to Dana or other axle suppliers? Or if AmAxle will simply move future production overseas to avoid such a problem?

Really gets to me.

[04bonnie]

Does anyone know anything about the Delta plant in Lansing MI? On a local radio show, there was some rumor, I think, about something happening to that, and something about shutting it down, and having the Lambdas built in Mexico????. Can anyone on here verify this, or deny it? Did anyone hear the Rich Michaels radio show? I did not, only hearing it from a family member, so I just wondered if anyone heard the same?

[Hunid Racks]

Originally Posted by 04bonnie

Does anyone know anything about the Delta plant in Lansing MI? On a local radio show, there was some rumor, I think, about something happening to that, and something about shutting it down, and having the Lambdas built in Mexico????. Can anyone on here verify this, or deny it? Did anyone hear the Rich Michaels radio show? I did not, only hearing it from a family member, so I just wondered if anyone heard the same?

Total nonsense

[NfamousZ24]

Originally Posted by lam

ehh....GM has $23.9 billion of cash.

They have more than that I assure you.

[Ambalanche]

This is total BS! That's 200 Mil that won't go toward getting GM another class leading car!

[Hunid Racks]

Originally Posted by Ambalanche

This is total BS! That's 200 Mil that won't go toward getting GM another class leading car!

If there is one thing that gets this board fired up it is a union related thread.

Most are about how the pay is so out of line.

Well the days of excessive pay are over.

At this time I don't beleive anybody has the specifics or conditions of this "contribution".

But how it was "negotiated" included actions against GM. Namely the Delta plant and Fairfax shutting down.

The UAW has to work in different ways now. Wages will not be extreme anymore. The UAW workforce will be paid less and held more accountable. **** Dauch has said publicly that he is outraged how some workers are absent up to 20%. Don't be surprised if the settlement includes actions on that issue.

BTW, the rumor is the 200 mill has a born on date. If not accepted quickly, it goes away.

[member12]

American Axle should have been slowly outsourcing to Mexico or to areas in America where UAW has no foothold.

You can't do business with entities like the UAW.

[GM-10]

Originally Posted by NfamousZ24

They have more than that I assure you.

Did you see more money from the seat of your black helicopter???

[jae1987]

Originally Posted by 04bonnie

Does anyone know anything about the Delta plant in Lansing MI? On a local radio show, there was some rumor, I think, about something happening to that, and something about shutting it down, and having the Lambdas built in Mexico????. Can anyone on here verify this, or deny it? Did anyone hear the Rich Michaels radio show? I did not, only hearing it from a family member, so I just wondered if anyone heard the same?

No way GM just built that place and it's state of the art. They also have one of the most efficent output ratios around.