GM finds short-term solution to American Axle strike
The five week-old strike at American Axle is finally starting to wear on GM, and the General has decided to move a small but crucial parts contract over to rival supplier Dana to help get its truck plants moving again. The 30,000-unit prop shaft contract for light pickups is considered a small deal, but the fact that GM is beginning to move on shows that the strike, which began on February 26, is beginning to take its toll on the giant automaker. The move is going to anger the striking workers, but it will also likely help get American Axle management back at the bargaining table. Recent events show that still more GM plants are being hurt by the strike, as the plant that builds the Buick Lucerne and Cadillac DTS was shut down last Friday, and Automotive News reports the Chevy Cobalt plant could idle this week. Perhaps the biggest news of all is that GM is running out of rear suspension knuckles for the hot-selling Chevy Malibu. Since the General is in the middle of a mega-million dollar ad push for the North American Car of the Year, we're guessing a work stoppage at the Orion, MI plant won't be taken lightly. This ever-lengthening strike may have started out as a non-story, but lost production on a grand scale of some of GM's most profitable products will hurt GM, American Axle, and its 3,600 workers in the long run.
[Source: Automotive News - subs. req'd]
Reader Comments (Page 1 of 1)
Corey W. 10:35AM (4/01/2008)
Can't say I see anything negative here...IMO, that's the way it should work, you have a problem, don't like something, go to another vendor... doesn't matter if, it's parts, services or people.
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Dude 10:35AM (4/01/2008)
Good for GM.
Union thuggery only works when they control all of the output. Let's hope Dana can get the parts to GM quickly and that American Axle can hire some people who actually want to work.
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jim 4:32PM (4/24/2008)
the workers on strike at american axel WANT to work. they dont want to take a stiff pay cut. they are asking to keep their wages the same... whats wrong with that? why take money from hard working people? why give the work to someone who will only hurt the economy? by hiring scabs, they will be able to make even higher profits while paying their workers less and less... wheres the money to stimulate the economy? oh yeah! its in GMs pockets!
fannibal 10:46AM (4/01/2008)
market forces are as real as the laws of physics. Businesses are pressured to make money. Employees are pressured to make money. And discerning consumers want to get what they pay for.
Seeing how these jobs do not require a lot of education, there are plenty of people in other parts of the world who are willing to work harder for less pay. There is no way around it.
In this economy, you better specialize, or your job will get shipped elsewhere. It even applies in medicine, which is the field I am going into. Radiology is a specialty that is arleady seeing jobs being outsourced. Since looking at X-Rays and CT images doesn't require you to be actually in the US, there are some hospitals that use indian doctors to look at X-rays for them.
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cowboy bob 11:00AM (4/01/2008)
Fanni- you are right on. I have already seen in the machine tool business where the machines are located in one part of the world, and the machinists are located in another. It is possible to do all the programming and monitoring via the internet, with only the task of material handling being done at the manufacturing site. The equipment is self loading as to machine tools, and unskilled labor is needed only to assure material movement. Anyone who thinks they cannot do without them, has a lot to learn. All business, of any kind, will be world sourced. Keep those "strike" signs for next winter. They will be handy to burn to keep warm.
Jason 11:02AM (4/01/2008)
If one place can't supply it, go somewhere else. That's the way business works. They shouldn't be in it to make buddies, they should be in it to satisfy demand from their customers. If you can't get what you want from AA, go somewhere else... maybe a non-union shop... that'd be funny... then maybe the stupid union will get the hint.
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Steve_S 11:23AM (4/01/2008)
Don't expect AA management to come to the table, expect AA management to shift more work to their Mexico plant.
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len simpson 11:34AM (4/01/2008)
My 20 years as a reluctant member of IAM showed me what unions are best at------killing companies & supporting deadbeats.
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Chris 11:40AM (4/01/2008)
I wonder how long before they put protesters in front of DANA offices?
I wonder if they will use actual union members or instead hire low wage no benefit bums to hold signs like the unions do down here?
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Bill G. 11:53AM (4/01/2008)
I am confused since aren't American Axel and Dana both UAW companies?
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Richard S. 1:25PM (4/01/2008)
IIRC, Dana is already in bankruptcy and most likely their employees have made some concessions and with annual car sales rate dropping and the economy wabbling, the UAW employees at Dana probably want any business they can get. Siding with American Axle workers won't help them because Dana employees already had concessions taken so there is nothing to save but their own jobs.
MajorGeek 12:07PM (4/01/2008)
Good, GM can't afford this now as they are making such progress and the pressure is on from all sides.
That said, it's a shame that they union does not have a fund to pay these guys for a few months pay; they have been collecting from some of these guys for decades. Most of these guys have mortgages and bills to pay and can only last a month or two. As I have always known from many years of experience, being in a union means you work for 2 corporations, one on your side and the other on their side and both sides are screwing you.
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JW 12:55PM (4/01/2008)
They could probably get a Chinese supplier to get this part done quickly and cheaply.
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geo.stewart 1:41PM (4/01/2008)
probably, but quality control would not be there.
not to say it couldnt eventually be sourced foreign but I dont see that as an option for right now.
Stuka 3:15PM (4/01/2008)
This is good news for DANA. They need all the work they can get right now. They have taken some big hits in the last few years. It may be a small order now, but it could turn into more orders in the future.
I am wonder why Dodge has not been effected though. The RAM 2500 and 3500 both use AAM axles.
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Eric Biran 3:52PM (4/01/2008)
What exactly is the point of a 5+ week strike where they aren't even willing to sit down at the bargaining table? Does the UAW think that walking out on the job and crippling an already weak supplier industry will suddenly force their superiors to concede bushels of cash without any kind of negotiations? I thought striking was about walking off the job to get TO the bargaining table, not away from it--and for over a month at that. Keep it up for another month and they'll get what they bargained for: nothing. No job to go back to, no pay, and no company. Sounds like a great plan.
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tom 6:58AM (4/15/2008)
Maybe they should give Dana more of there work.You go to a supplier you can get the parts from now not when they want to come off strike
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