American Axel Strike Could End

The UAW and American Axle have reached a tentative agreement on a new labor contract, said people familiar with the the negotiations and a company spokeswoman.

The end of the strike should bring a little relief to workers who have been struggling to survive on $200 a week in strike pay, compared to paychecks that were three and four times that before the strike.

But the 3,650 workers who struck American Axle face sacrifices in the future. The deal is likely to include steep wage cuts, making it hard for some workers to feel like they’ve gained anything in the strike, which would be 12 weeks old Tuesday.

Earlier in the talks, there was discussion about dropping production wages from about $28 an hour to $18 an hour, and lower wages for jobs that aren’t directly involved in axle or skilled-trades work.

Wages are anticipated to be lower still at American Axle’s driveshaft and axle factory in Three Rivers, a plant that had been fighting to stay open.
The deal has been expected to close forging plants in Detroit and Tonawanda, N.Y., near Buffalo. Nearly a week ago, UAW President Ron Gettelfinger said the union was fighting the closure of a third plant, in Cheektowaga, N.Y.

The sticking points in this strike have included just how low wages would go, particularly for workers who don’t make axles, what kind, if any, of lay-off pay workers would receive and whether buyouts and buy-downs would be paid at one time, or over two or three years.

Keep an eye on the real deal.  Did the UAW give away too much?  How did the workers benefit?  Questions, there is always question at the end of every negotiation.