UAW workers strike American Axle; walkout could jeopardize shipments to GM

[NfamousZ24]

The UAW sent its members at American Axle & Manufacturing Inc. on strike early today, protesting the company's proposals on wage and benefit concessions.

In a letter to members handed out at meetings Monday night, and obtained by the Free Press, the union said the company had made unreasonable proposals on wages and proposed increasing co-pays for prescription drugs, eliminating vision coverage and freezing pension benefits, replacing them with a 401(k) plan.
The union said it requested information from the company on the assumptions used to reach these demands, but the supplier has so far refused. The union is now accusing American Axle of committing unfair labor practices.
"We will have no alternative but to strike," the letter said. American Axle's contract expired at 11:59 p.m. Monday.
In a statement after the strike started, the company said its primary objective "is to achieve a market-competitive labor cost structure in the United States."

http://freep.com/apps/pbcs.dll/artic...SS01/802260303

[NfamousZ24]

The United Auto Workers launched a strike against American Axle & Manufacturing Holdings Inc. late Monday night after negotiations broke off when the two sides failed to reach a deal on a new labor pact.
The strike sends 3,650 American Axle workers in Michigan and New York to the picket lines and threatens to snarl truck production at General Motors Corp., the parts maker's largest customer.
UAW President Ron Gettelfinger said in a statement that American Axle is looking to dramatically reduce workers' benefits and cut their hourly wage to $14 an hour. He accused the company of failing to provide the union with enough information for it to evaluate the company's proposal.

"The UAW has a proven record of working with companies to improve their competitive position and secure jobs," Gettelfinger said. "But cooperation does not mean capitulation. Our members cannot be expected to make the extreme sacrifices American Axle is asking for with nothing in return."
The company, in a statement, said labor costs, including wages and benefits, add up to $70 an hour when the industry averages $20 to $30 and hour.
"All of the changes we have proposed have been accepted by the UAW in agreements with our competitors in the United States," Chairman Richard Dauch said.
Dozens of workers in Detroit grabbed picket signs and walked off the job immediately after the contract's 11:59 p.m. expiration time passed with no new deal or contract extension. The last contract was reached in 2004 after a one-day walkout.
GM officials have been closely watching the situation, but wouldn't comment on the talks.
Bargaining teams have been wrestling with the same issues that led to brief strikes earlier this year against GM and Chrysler LLC before the union cut deals with Detroit's automakers that drastically reduced labor costs in the face of competition from leaner foreign-based rivals.

http://detnews.com/apps/pbcs.dll/art...TO01/802260333

[NfamousZ24]

I know American Axle makes the axels for Moraine Assembly (GMT360)

Thank you for merging! Also I was searching GMI for this story, I am so suprised this wasn't posted already.

[member12]

Don't the T360s use the same axle as the half ton trucks?

This could get bad. The Trailblazers still sell pretty well even if half of them go in a fleet package.

The highway patrol could probably make good use of the SS (as could I)......It can't be more expensive than the Tahoes I see them running around in.

$14 an hour seems reasonable to me, but I don't know the exact amount of work that goes into it. Maybe they need to RIF some of their production line or go for more automated work. I'd hate to see it with a possible recession looming, but it might have to happen.

[Ambalanche]

GM can't catch a break!

[likearock00]

Welcome to 2008 auto workers! See how the rest of the workers in the US have to survive with the retirement packages we are offered.

I say let 'em deal with it or let them go home.

[joemac]

Will we only be happy when no one is making more money than us or that we're all making minimum wage? Corporate America would love that.

It's apparent that the Jedi mind trick has been placed on Americans! Yes! let's vote the whole lot of us make LESS money! Give back more to the corporations so the executives can continue to outsource jobs, lower our wages, sell of more stock options, and get that extra yaht for the grand kids.

[skylark68]

Originally Posted by joemac

Will we only be happy when no one is making more money than us or that we're all making minimum wage? Business would love that.

I agree. I don't understand the mentality of some of the folks on this page. They love to see fellow workers suffer for some reason. Gee, I have a crappy job with little or no benefits, so EVERYONE should be in the same boat!!!

Or: I didn't spend eight years in evil medical school when some Joe Blow can get a factory job making good money without a degree! I shudder at the thought of something like that!

[camaro_freak]

They should be happy... most places don't offer pensions or even 401ks these days. They should not look a gift horse in the mouth. At least they are getting something. Co-pay goes up.. big woop-t-do. Some people can't even afford insurance these days either.

[Whitesky]

Originally Posted by camaro_freak

They should be happy... most places don't offer pensions or even 401ks these days. They should not look a gift horse in the mouth. At least they are getting something. Co-pay goes up.. big woop-t-do. Some people can't even afford insurance these days either.

I agree with with the 401k and co-pay, people should not complain about these. (401ks should also be standard and Social Security should be eliminated but thats a different subject) However, a steep wage cut would be hard to swallow.

[BurnOut]

Originally Posted by joemac

Will we only be happy when no one is making more money than us or that we're all making minimum wage? Corporate America would love that.

It's apparent that the Jedi mind trick has been placed on Americans! Yes! let's vote the whole lot of us make LESS money! Give back more to the corporations so the executives can continue to outsource jobs, lower our wages, sell of more stock options, and get that extra yaht for the grand kids.

What makes low/unskilled labor in the US any better than low/unskilled labor elsewhere?

Look, here's the way it works:

- a person has a skill that he has chosen to use in order to make a living
- that skill falls somewhere between "common" and "uncommon"
- that skill also falls somewhere between "in high demand" and "in low demand"
- obviously, if the skill is uncommon and in high demand, anyone who has that skill will be very well paid (think: brain surgeon)
- conversely, if the skill is common and in low demand, anyone who has that skill won't be paid very well (think: someone who churns butter by hand)
- for the most part, the kind of skill that we're talking about here is common and in medium demand

Like it or not, the market has determined what the going rate is for the kind of work that people are doing at American Axle. Apparently, $14/hr is the (pay) rate at which quality/employee retention are at acceptable levels for the employers, yet they aren't spending more than the work is worth. That's how the market works.

Don't get mad at the employers for wanting to cut costs so they can be competitive... if anything, get mad that the UAW has artificially inflated wages to the point that it's cheaper to ship the work out of the country, pay to transport the finished product, and deal with import taxes than it is to just do it here.

[Clownzilla]

Why does the UAW think that they deserve $70/hr when the industry average is $20 to $30/hr? Why are they whining about getting a 401k instead of a pension? Why are they whining about increasing their co-pay? It's time that they get out of their bubble and realize that they have to work WITH the rest of the working world. They are getting some GREAT benefits given the market conditions. They should be grateful that they got that offer. They are going to wish that they get these offered benefits when they get $0/hr and NO 401K and NO health care.

[awalbert88]

While I think replacing a pension with a 401k should be pretty standard across the board, I am not seeing any details about the amount of co-pay increase. Realistically, I don't see a strike as being a very effective way to improve your bargaining position when US wages are so much higher than those of the countries we are competing with. A better solution to the problems these workers face is to go after the reason companies can't afford to pay what they once did - unfair trade agreements. A lot of Americans don't make the connection between those dirt-cheap Chinese goods they love (even when they are lethal) and the decline in US manufacturing jobs. It seems to me that a well thought-out national advertising campaign might go a lot further towards accomplishing their goals than striking would. And there is at least one presidential candidate who is very distinctly starting to rail against blanket free-trade agreements, so that might be another thing to consider.

Until the trade situation changes, the wages and benefits the UAW has long enjoyed are impossible to maintain. Once American workers are protected from unfair, imbalanced trade agreements, wages and benefits can start to go back up for everyone.

[ctaylorzl1]

Wow, a union striking because their company wanted to make their wages and benifits competitive with the rest of the world! No way!

[ronald mcretard]

I think the reason the UAW guys feel they deserve more than people in other countries is because a lot of Americans still value U.S.-made products. The problem is that less and less people actually do. A lot of people would have no problem with buying an Indian or Chinese car as long as it is really cheap, and the UAW needs to realize that.