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American Axle Workers Strike

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by James Parks, Feb 26, 2008

Photo credit: Jim West

Fed up with demands for cuts in pay and benefits, some 3,600 workers at American Axle & Manufacturing in Michigan and New York, members of the UAW, walked out today after the current contract expired.

Contract talks broke off with major issues unresolved. The Detroit-based company is demanding wage reductions of up to $14 an hour, as well as elimination of future retiree health care and defined-benefit pensions for active workers.

UAW President Ron Gettelfinger says:

The UAW has a proven record of working with companies to improve their competitive position and secure jobs. 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 workers also are striking because the company has failed to provide the union with the information it needs to evaluate the merits of its proposals.

Meanwhile, the union has made comprehensive proposals that would reduce American Axle’s labor costs significantly and give it more flexibility in its operations. However, management continues to move work to Mexico if the union does not agree to its demands, according to the union.

Says UAW Vice President James Settles, who directs the union’s American Axle Department:

We’ve been negotiating in good faith for some time now. We want a settlement that works for everybody. But the company does not appear to be on the same page.

American Axle can afford to treat workers fairly. The company earned $37 million in profits last year with sales of $3.25 billion. American Axle has cut its U.S. workforce in half since 2004, but continues to expand overseas with facilities in 12 countries, including Poland and China.

Founded in 1994, the company produces driveline, drivetrain and chassis systems and metal-formed products for the automotive industry.

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3 Comments

  1. hard working ric on 27.02.2008 at 18:50 (Reply)

    SHAME on the management - we need the names of the people making the decisions at “American” Axle so we can write them and tell them we are ashamed of them.
    SHAME on the people who only look for the “sharpest” way to maximize their personal profits. SHAME!

  2. flintboy on 28.02.2008 at 07:12 (Reply)

    As a member of local 1853 in Spring Hill TN I would like to express my support for the struggle which is currently underway at American Axle. Brothers and sisters we must all stand together in this. Your cause is just. The corporation is becoming more aggressive in it’s attack on the union and the future for all of us. Pontiac assembly has been idoled as I write this. We must make them suffer the consequences of their unlawful and inhuman actions. Recently our product was outsourced to Mexico with little fanfare in the media (the Vue). We have a grievance that is pending since we were laid off in violation of labor laws. Provisions for job bank protection were disreguarded by the corporation in this outsourceing. Their disreguard for the rule of law will not go unnoticed if we all stand together. We must not allow whipsawing to stand if we are to survive as the standered bearers of the middle class. The International Union should be what it’s name implies. Workers of all countries have the same interests but this is our fight until we organise those who think otherwise because of the corporation’s strategy of divide and conquer. In solidarity. flintboy.

  3. canada on 03.03.2008 at 19:26 (Reply)

    well we continue to struggle in the great white north. once again we the auto parts suppliers are laid off. we must sit back and wait for this issue to be resolved (unpaid of course). it was just a few months ago that gm workers went on strike and we were laid off. unfortunately as we do not belong to a union (due to a majority of immigrant workers who fear for job security) we will continue to sit on the sidelines as others battle for a decent living. our skilled employees average $20 while new operators start at under $12 compared to $15 last year. well good luck to you our brothers and sisters down south in america.
    however remember that you work for or supply auto companies that can barely keep heads above water. that are being crushed by the asian auto giants, and do not seem to know what to do about it other than cut $$$$. if your going to strike make the issue over the ineptitude of our parent companies to produce product that sell and that can outsell imports!!! we are on a sinking ship and your asking the captain for first class accommodations. i have offered many excellent suggestions to save money at no expense to anyone, to create more business with very little overhead and huge return….do my bosses listen….of course not! they are arrogant ignorant morons who only care about quick cash for themselves. either we jump ship and hope an asain boat will pick us up…or we force our captains to fix the hole in the bottom of our boat. feel free to email me when this strike is over so i know when i can go back to work and feed my children. thanks and good luck

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