MnetTV

Search Manufacturing.net
Today in Manufacturing.Net

Resources
Bookstore
Career Center
Events Calendar
Links
White Papers

Free White Papers

News
Featured Articles
Financial News
Global Manufacturing
Government News
Mergers & Acquisitions
News Archive
People in the News

Amazon

Market Sectors
Aerospace
Automotive/Transportation
Chemical/Petroleum
Food/Beverage
Medical
Metals
Pharmaceuticals/Biotech
Plastics/Rubber
Other Manufacturing

Industry Focus
Design & Development
Electrical & Electronics
Energy
Environmental
Facilities & Operations
Labor Relations
Manufacturing Technology
Materials
Quality
Safety
Supply Chain

Career Center
CareerBuilder.com


About Us
Editorial Contacts
Advertise with Us

Our Partner Sites
Chem.Info
ECN
Food Manufacturing
IMPO (Industrial Maintenance & Plant Operation)
Medical Design Technology
Pharmaceutical Processing
Product Design & Development
R & D Magazine
Wireless Design & Development
Wireless Week





Advertise with Mnet



American Axle Workers Unhappy With Tentative Deal
By Tom Krisher, AP Auto Writer
Manufacturing.Net - May 19, 2008

Printer Friendly     E-mail to a Colleague


DETROIT (AP) -- Most of the workers leaving Martin Luther King Jr. High School were unhappy with the tentative agreement the United Auto Workers reached with parts maker American Axle and Manufacturing Holdings Inc.

Yet as they streamed out of the school after hearing details from UAW President Ron Gettelfinger and other union officials, many said they'll vote for it anyway because it's the best the UAW could do with the U.S. economy faltering and the company threatening to move jobs to other countries.

''It's just a nasty situation,'' said Curtis McCall, 45, of Detroit, an American Axle worker for 14 years. ''You almost have no choice. If you vote no, then really you're out in the cold.''

Other workers said they want to keep their nearly 12-week-old strike going to hold out for a better deal. Several said there was a lot of screaming inside the meeting as more than 1,000 Detroit-area workers expressed frustration at facing a 34 percent pay cut if the contract is approved.

''I'm voting no. It's totally unacceptable,'' said Gary Reed, 52, of Warren, who criticized American Axle Chairman and CEO Richard Dauch for making millions while asking production workers to take a pay cut from $28 per hour to $18.50.

''It's a slap in our face,'' Reed said. ''We've been watching this guy making millions and millions of dollars even while we've been on strike, and were going to accept a stab in the back and just walk away with a smile on our face?''

About 3,600 workers at five factories in Michigan and New York will vote on the contract starting Monday. A large Detroit local won't vote until Thursday.

If approved, the deal could end the nearly three-month strike that crippled General Motors Corp.'s production of pickup trucks and sport utility vehicles, causing thousands of layoffs in the U.S., Canada and Mexico.

Workers at two key GM assembly plants went on strike over local contract issues during the American Axle strike, and industry analysts said the UAW struck to pressure GM to get involved in the American Axle deal. Union officials denied any connection.

The four-year agreement also closes American Axle's Detroit and Tonawanda, N.Y., forge operations.

The deal does give workers a $5,000 signing bonus, lump-sum cost of living adjustments and a variety of options to take money and leave the company.

After the meeting, Adrian King, outgoing president of UAW Local 235 in Detroit, said the session didn't go well. Workers were angry about the deal, and their frustration was compounded by a malfunctioning public address system that hampered questions from the crowd.

''We had a lot of angry brothers and sisters,'' he said. ''It's definitely a hard-looking contract, very tough pill to swallow for the membership.''

King wouldn't say if he favored the pact, but said it was the best deal that UAW bargainers could get from a company that could move jobs elsewhere.

King also said an additional $18 million contribution from GM was the key to reaching the deal late Friday. The automaker already had agreed to kick in $200 million to help end the walkout and threw in the extra $18 million to cover supplemental unemployment benefits that American Axle was unwilling to pay, King said.

American Axle makes axles, drive shafts and stabilizer bars mainly for GM's pickup trucks and large sport utility vehicles, and GM said it lost $800 million in the first quarter due to the strike.

A summary of the contract distributed by the union included base pay of $18.50 per hour for Detroit workers, up from the $17 per hour that American Axle had been offering.

The summary also said there will be buyouts of $85,000 for someone with less than 10 years with the company and $140,000 for a worker with more.

An offer of a $55,000 early retirement bonus also was included in the proposed contract.

Workers also would get a wage ''buydown'' of up to $105,000 paid over three years to help ease the transition to lower hourly pay. The size of the buydown would vary with the size of a worker's pay reduction.

The deal features different pay rates at each of the company's U.S. locations. Production workers in Detroit, for example, would make a maximum of $18.50 per hour, but workers doing some of the same jobs in Three Rivers, Mich., would make $14.50. Factory support workers in Detroit would make $14.35, while the same job would pay $10 per hour at the Three Rivers axle plant.

The summary sheet says American Axle agreed to invest $170 million to $200 million in UAW-represented factories, and the company agreed to place some new business in the plants. In addition, notices of outsourcing work from Detroit and Cheektowaga, N.Y., will be rescinded, the summary says.

And the union said it was able to hold off a company plan for up to a $4,000 health insurance deductible for a family. The new deductible is $300, the summary says.

Most workers leaving the meeting Sunday predicted the vote will be close. One worker tossed pages of the summary into the air as he walked out.

''There will be a lot of unhappy people,'' Reed said as he carried a picket sign outside the school. ''But I think it's going to be accepted.''


Printer Friendly     E-mail to a Colleague



Talkback!
Manufacturing.net is pleased to provide you an opportunity to share your opinions on any of the news stories or articles on our site. We reserve the right to edit/remove comments.
Viewing 6 User Comments
Add a Comment
Buyout! Buydown! Early Retirement  5/19/2008 3:43:00 PM
It's difficult to feel sorry for them, when the rest of us will get nothing close to what the Boyz get.
Union is looking out for their own best interests  5/19/2008 4:00:00 PM
As more works experience this kind of support from their unions, they too will realize the "Age of the Union" is over. There was a time we needed an organization to ensure we were treated fairly and could work in a safe environment. Now with OSHA and L&I and many other state and federal agencies and with companies realizing the cost benefits of a safe and healthy work force, these over paid and "for profit" Unions and their Bureaucracy is out dated and is showing their weakness in today’s global market place. It is ironic that the union is willing to bargain for a substandard contract in order to guarantee contracts for other plants that they are representing, guaranteeing their income to increase while the people who are sweating to make a living continue to pay dues with out true representation. Wake Up America, your voice is just as loud as those windbags in the union hall!!!
American Axle Workers Unhappy With Tentative Deal  5/20/2008 5:54:00 AM
The Union keeps greedy management from taking all the profits and makes sure people are paid a descent wage for their work. "Age of the Union" isn't Dead The Working Man Middle Class is Dying. I think you and the rest of this Country need to realize that...
Buydown?  5/20/2008 7:31:00 AM
Do the math. If an employee gets the maximum buydown of $150,000 paid over three years, that equates to an additional $16.82 per hour, bringing the total to $35.32 per hour for the next three years! Sounds like a RAISE to me! Why are they complaining about getting more money for three years while they figure out how to either make more later, or do something else?
Union Validity  5/20/2008 2:11:00 PM
The "age of the union" is dead....or should be. I'm not one for government intervention, but perhaps the govenment should stop wasting time on useless legislation and abolish unions before our economy is further destroyed. If you union people don't think you're getting paid enough, find somewhere else to work. Growing global competition will not tolerate strikes and similar mentality much longer.
Unions - their day has passed  5/22/2008 2:51:00 PM
I agree with the statement that the days of the need for union representation are in the past. Worker's rights and the work environment are now protected by the State and Federal laws. The original reasons for union representation - to protect workers from unsafe conditions and unfair practices - have not existed for many years. The most disappointing fact is that the rank and file are OVERPAID for the work they do when compared to any other workers around the world. This has forced companies to move out of the U.S. just to stay competitive vs. their global competition. The "head in the sand" approach, ignoring the facts about pay scale vs. the rest of the world, is a great way to guarantee that your jobs will be permanently lost. Time to join the rest of the world - WE don't have guaranteed jobs, neither should you!


Add a Comment...

E-Mail:
The content of this field is kept private and will not be shown publicly.

Subject:
Comment:

 

     



  

THIS WEEK'S MOST
READ NEWS ITEMS




Other Manufacturing

Evergreen Solar Gets $1.2B Contract

Garrity Flashlight Plant Closing, 50 Jobs Lost

Germany To Fine Cosmetics Firms


Medical

Cardinal Health Eliminating 600 Jobs

Medline Industries Acquires Chester Labs

Aging Population Boosts Medical Device Makers

Plastics/Rubber

Plastics Supplier A. Schulman Raising Prices

Newell Rubbermaid To Cut Products, Raise Prices

U.S. Manufacturers Upset Over Chinese Tires
News Video