The 10-day strike between American Axle & Manufacturing Holdings Inc. and the United Auto Workers union is now threatening to idle or partially shut down 13 more GM plants as early as Monday. Although talks are underway again, even a resolution over the weekend may mean closures as it takes time to deliver inventory and ramp up production. As of now, seven assembly plants at GM have already been idled after the AA workers walked off their jobs on February 26th.
American Axle supplies components to many different automakers, meaning the strike is being felt industry-wide. The strike is hitting GM particularly hard, however, as it does represent some 80% of the supplier's business. GM idled four truck plants within days. By yesterday, five GM plants, and seven suppliers were down. Chrysler may also have to idle plants in Delaware and Mexico by mid-next week if both sides don't come to an agreement.
There is light at the end of the tunnel. Reportedly, both sides already agree on the principles of a concession, leaving just the issue of hourly wages on the table. And, as most negotiation experts point out, money differences are often the easiest to solve.
[Source: Detroit News, Photo by Bill Pugliano/Getty]
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Reader Comments (Page 1 of 1)
Richard S. @ Mar 7th 2008 1:50PM
So how long can GM have the plants shut-down before they start running out of cars already stockpilled at the dealerships, especially since sales of those GM trucks have nose-dived in light of crude oil above $100/bbl.
ddrhero @ Mar 7th 2008 1:52PM
the picture makes it look like no car NASCAR
Jason @ Mar 7th 2008 2:02PM
The only one hurting here are the workers.
#1, in MI it's f***in cold outside right now. March all you want, you're only freezing your own a**es off.
#2, GM truck sales are through the floor anyway. It does them no good to pay people to make a bunch of trucks that aren't selling. That'll be less 08's with huge cash rebates on the hood when 09's are released.
#3, GM is shutting down a lot of other factories because of the strike at this one. Not all of those factories are union shops, so those people are being told to go home with no union safety net - ie they're not getting paid.
I'm sure GM could hold out on this one. Sure the employees of the places that depend on this deal (especially the ones that aren't unionized) are hating this because they are out of work, but I'm sure GM knows how much money they're saving while all of this is going on.
Tina @ Mar 11th 2008 9:00AM
UAW is not striking against GM. They are striking against American Axle. If you remember correctly, UAW and GM reached their contract in the fall after a one day strike. Maybe American Axle should take note on how to nogotiate from GM.
Fatman @ Mar 7th 2008 2:09PM
I'm sick of these bozos, they're costing other people their jobs. Unions made a little bit of sense in 1938 not so much in 2008. The country is teetering on the edge of a recession; guys, wake up, you're not helping.
B @ Mar 7th 2008 5:50PM
Too bad the unions cant be as smart as you.
oby @ Mar 7th 2008 3:51PM
So while all this is going on GM restores Wagoner's salary and bumps it up for good measure. As someone asked on TTAC, 'Is there a connection?' BTW, why should AA workers have to make do with a fraction of the wages they earned before. AA's lack of profitability has more to do with being pressured relentlessly by the likes of GM for cost reduction while they utterly fail to do anything about their own inefficiencies.
Concerned American Worker @ Mar 10th 2008 1:59PM
Say. You union guys at American Axle. You need to reach an agreement, and like "soon". You're making it rough for "all of us".
Tina @ Mar 11th 2008 8:56AM
I have a few points that I would like to make here. As one of the laid off workers at a GM plant, I am still in support of the UAW workers. (I am not UAW). If I was a retiree and they were trying to take away my health care I would hope the union that I belonged to would do everything in its power to insure that I kept the benefits I worked my whole adult life for. These men and women retired on the notion and contract that they would have health care in their senior years. I am sure that all of you that have made your comments about the unions being in the wrong have not taken the time to think about all that they have done for you. Maybe not directly, but indirectly as well. Who do you think made it so that you are working in a safe environment and that you have benefits and pay that is at the level that it is? Think about China and other countries that use child labor and if their workers get hurt the loose their jobs. Think about the casualty rate in these other countries. We do not have to deal with this in the USA not because of the goodness of the companies but because of what our fathers and grandfathers did in their unions. Insead of bashing what they did for us, lets take a moment to thank them and support what they are trying to do today. I do understand that there are bad things that go on in the unions. I am not nieve, but for the most part as it is in this case, what they are doing is for the better of the membership, the retirees and everyone else that works at American Axle. Yes, even the saleried workers.