Talks stall in American Axle strike
In Ohio, the strike has affected GM plants in Parma, Mansfield, Toledo, and now West Carrollton.
DETROIT (AP) — Talks between American Axle and Manufacturing Holdings Inc. and striking United Auto Workers took a turn for the worse Tuesday as the company issued a statement saying the UAW has rejected wage-and-benefit offers that are better than those paid by competitors.
The company also said if the UAW won’t consider “a U.S. market-competitive labor agreement” then it will have to plan for potential closure of some or all of its original U.S. facilities.
“In order for AAM to be able to compete for new business and sustain employment at the original U.S. locations, the UAW must offer AAM economic terms and conditions that are comparable to those it has already granted to AAM’s competitors,” said the statement, issued late Tuesday.
The UAW’s latest proposal, made April 14, had a total wage-and-benefit cost that was almost double the market rate at UAW-represented competitors, the statement said.
A message was left for UAW spokesman Roger Kerson.
About 3,600 UAW members have been on strike at American Axle’s five U.S. facilities for 57 days, since Feb. 26.
In Ohio, a lack of parts prompted about 2,000 employees of the Moraine GM plant in West Carrollton to be left idle, and the strike also has meant changes at GM plants in Parma, Mansfield and Toledo.
American Axle makes axles, drive shafts, stabilizer bars and other components mainly for General Motors Corp. pickups and large sport utility vehicles, but it also makes small brake or suspension parts for GM cars.
The strike has caused GM to curtail production at about 30 factories, but so far it has had little impact on the automaker because trucks and SUVs aren’t selling well and GM has ample stock.
Also Tuesday, GM announced that it would reopen its Detroit-Hamtramck car assembly plant that had been closed due to a parts shortage from the strike. The plant’s one shift will return on Monday and resume making Cadillac DTS and Buick Lucerne large sedans, spokesman Dan Flores said. The plant had been shut down since March 28.
American Axle has said its total U.S. hourly labor cost including wages and benefits is $73.48, three times the rate at its domestic competitors. Workers say the figure includes retiree health benefits and other items that shouldn’t be included in the cost.
But the company’s statement said agreements with competitors include a total hourly labor cost of about $30 per hour.
UAW President Ron Gettelfinger said during the weekend that the pace of negotiations has been “excruciatingly slow,” which he says is the company’s strategy. He said the union has been doing the giving in the talks.