American Axle strike deadline looming

[ScreamingMeemie]

http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN2525688120080225

(For those who don't know, American Axle is a major supplier of axles for the Big 3, mainly GM. In fact, they were GM until they were jettisoned off.)

snip-

DETROIT, Feb 25 (Reuters) - American Axle & Manufacturing Holdings Inc (AXL.N: Quote, Profile, Research) and the United Auto Workers face a final day of contract talks on Monday before the midnight expiration of the union's current contract with the parts maker, a major supplier to General Motors Corp (GM.N: Quote, Profile, Research).

Negotiators for the auto supplier and the union met on Saturday and Sunday. Both sides declined to comment on the talks, aimed at reaching a labor deal for more than 3,000 UAW-represented workers in Michigan and New York.



snip-

Lehman Brothers analyst Brian Johnson said he expected American Axle to emerge with a contract that would save $200 million annually by slashing wage rates by almost a third.

Johnson said unless the UAW agreed to sweeping wage reductions, American Axle could threaten to close its Detroit plant and ship the work on a next-generation axle for GM trucks and SUVs to a factory in Mexico. "We expect significant concessions," he said in note for clients.

-snip



Further proof that Detroit is dying. I talked to my father (employee) tonight. It's not looking so good. They want to cut wages from $65/hour (this is a figure that includes ALL benefits along with hourly rate) to $27/hour. That works out to be around $14 an hour for long time employees. Employees with mortgages to make and mouths to feed. It is disgusting. It is sickening. That is not a living wage in this town anymore.

And, if you could please, spare a thought for my dad. Too young for SS, too old to find another job.

[ScreamingMeemie]

1. Additional info...looks like it's a strike.

http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN2563804020080226

snip---

DETROIT, Feb 25 (Reuters) - Contract talks between American Axle & Manufacturing Holdings Inc. (AXL.N: Quote, Profile, Research) and the United Auto Workers were stalled with hours remaining on the union's contract, and local bargaining units were preparing to strike, union officials briefed on the talks said on Monday.

Talks between the two sides have snagged on the union's proposal to create a "wage bridge" that would allow lower-paid new hires to earn more with eventual seniority, and on the Detroit-based company's proposals to shutter facilities, said the officials, who asked not to be named.


---snip


Apparently massive losses and more displaced employees aren't important when we can be complaining about Keith.

[sailor65]

2. Dauch

has no intention of continuing investment in Hamtramk. AAM has been dumping all its capital cash into Mexico and China. I've been watching equipment I spent months and years designing and building ripped out and shipped to one of those sites. Most of the suits in the Crystal Palace (Your dad will know what that is) don't even bother pretending anymore. The Three Rivers facility is on its way to an overseas trip as well.

I've never been in the Union, but I'm usually down at AAM when these negotiations are going on. Dauch will use this next round as an enabler for the next round of value export.

Don't be fooled too much by the UAW either. They have backed off greatly on protecting American workers in favor of starting efforts to unionize foreign workers. The UAW is not your dad's friend in this either.

I'm sorry for your dad. Is he in Production or Trades? I won't ask you who he is (Rules & all) but I'd bet I know him or have at least crossed paths with him over the years.

[B Calm]

3. Reaganomics all over again..

[Bozita]

4. The strike is now on.

http://www.forbes.com/feeds/ap/2008/02/26/ap4695288.html

[ScreamingMeemie]

5. Kicking