The American Axle strike, now in its second month, is causing General Motors more than a few headaches. The parts shortage caused the General to nearly cease production of its highly profitable large trucks and SUVs, and shut down production in Oshawa, Ontario and Fort Wayne, Indiana.
As of this past weekend, it appears that GM has found enough parts to re-open those two plants to start building the Chevrolet Silverado and GMC Sierra again. While that's good news for those workers, the SUV plant in Arlington, Texas, all but untouched by the strike, will now find itself shutting down. Arlington will go on a four-week layoff starting April 14.
To get the Ontario and Indiana plants up and running, GM is reportedly getting parts from an American Axle plant in Mexico (as Chrysler has been doing). Although GM won't officially specify from where the parts are coming, if they are being supplied from Mexico, as many suspect, it will offer the automaker additional leverage in its dispute against the UAW. Union officials are currently losing negotiation power as the slumping U.S. auto market has reduced the demand for vehicles with American Axle components. In a move to shift the balance of power back to its favor, the UAW has threatened additional strikes if local contracts aren't soon reached.
[Source: Detroit News]
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Reader Comments (Page 1 of 1)
BowserUSC @ Apr 7th 2008 2:47PM
To be honest, this seems like its more of a situation where unions go wrong. Trying to protect their workers who are losing out because demand is dropping for their products.
pmalik @ Apr 7th 2008 2:53PM
Striking yourself outta job... i bet the guys in mexico are dancing around.
sucka @ Apr 7th 2008 3:08PM
Svrew You uaw! I sure wish I could strike anytime I didn't get a raise ... You better get used to walking in lines...At least you Have, I mean HAD a job...Go read the newspaper- pretend your at work
james @ Apr 7th 2008 3:06PM
GM should just get hardass on them. Seriously, f*ck UAW, they're increasingly out of touch and irrelevant these days.
Though with the Democrats coming in next year...
Rboyett @ Apr 7th 2008 3:16PM
American Axle's employees are on strike, not GM's. The only thing GM could do is to find another supplier but that takes time and money...
As for American Axle, considering the strike has lasted for two months, I'd say they are being hardasses. As the article says they are now supplying GM from a plant in Mexico (there go some UAW jobs) but I suspect the plant capacity isn't enough for GMs demands, thus the need to shutdown assembly plants.
However I think this also helps GM to a degree. Shutting down plants like Arlington for a few weeks will let them align inventories and reduce losses. It could end up being helpful.
tom @ Apr 7th 2008 3:09PM
I wish I could get paid an arm and a leg to read the newspaper at work, demanding raises...
rar @ Apr 7th 2008 3:23PM
Are you posting on a blog when you should be working?
tom @ Apr 7th 2008 3:36PM
Its called lunch RAR- i mean mom
Hungry?
Richard S. @ Apr 8th 2008 1:06AM
Striking for 2 months? Where are these American Axle union workers getting money to pay their bills? Even a UAW slush fund will only last so long before it is depleted. If American Axle and GM can hold a little longer (and if current sales trend persist they may actually be able to) then eventually the UAW workers will fold.
DanW @ Apr 8th 2008 5:44AM
So... Remind me once again why we're supposed to "buy American"? Is it so CEO's can give themselves a 9% raise, getting a $10 Million paycheck while the work is either outsourced to Mexico or the workers have to take a 50% pay cut?
trucky217 @ Apr 8th 2008 12:47PM
Mitsubishi Australia shut their doors last Thursday 3rd April with the loss of 1,000 jobs but over the eyars the work force has gone from 5,000 down to that number. The car they built here just didn't sell besides who want a 6 cyl front wheel drive that was adopted from a U.S. car they they didn't want either, not saying U guys are bad by all mean U'r not it's just that when it comes to car if U don't want them chuck 'em to Autsrlai they'll have, well we don't want the rubbish either so throw them Mexico's way next time. And yes the unions suck at thier job
Mike @ Apr 9th 2008 8:22AM
Did I miss the the info on this strike where it talked about reading the paper at work and getting a raise? The stuff I read A. A. was asking for a 50% pay cut from A.A. workers?
pepper @ Apr 10th 2008 3:37PM
dana people here start at 10.00 an hour.
even if the trucks get built will people have the money to buy them? Here in this area the trucks are packed in the sale lots.
Jim Bauer @ Apr 12th 2008 6:02PM
Companies love to use the argument that labor costs are too high, pension benefits are a burden to fund, maintain and administer, medical insurance costs are continually on the rise...the list goes on. But workers need these important benefits and a liveable wage in order to support their families. This is what I think many of these CEOs in corporate America are failing to understand; much of this unrest by the workers is due to top executives only recognizing the costs of the bottom tier of their workforce. The guys working on the assembly lines. The CEOs want to make their cuts at the expense of the OTHER employees (yes, CEOs are employees), rather than themselves. The truth is that these guys are millionaires. If you ask me, millionaires do not need pensions. They've made more than enough money to live very comfortably for the rest of their lives. They also can afford to pay for their own private medical insurance. They do not need to have their tax expenses paid for them (like when they get those big bonuses that will have complex and sometimes expensive tax consequences). Again, the list goes on. So why are they (the companies) paying for this stuff, especially in a time when cost appears to be a fundamental reason for denying the union's demands, and frankly the worker's needs? If companies like Axle are truly interested in lowering costs, why not start by looking into the compensation packages and over the top benefits of the guys making all of the decisions? A guy doesn't mind conceding a few things, but I don't think a guy wants to hear anything about rising costs when its coming from a millionaire who will not feel even 1/10th of the pain the worker will feel when his wages and benefits are hacked away at. I applaud the union for their resolve in this fight.
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Jolyna @ Apr 13th 2008 8:34PM
DICK DAUCH AND THE SHAREHOLDERS OF
AMERICAN AXLE ENOUGH IS ENOUGH !!!
I am sick and tired of the CRAP that Dick Dauch and American Axle is trying to dish to its employees and their families.
I can’t believe that this man has the nerve to sit there and offer insulting wages with insulting “buy downs” and “buy outs”. He should be ashamed of what he is putting our 3600+ families through. Let’s not forget the other hundreds of thousands families that are being affected by this strike too. Not only in our country; but world wide.
He seems to think that his “buy downs” and “buy outs” will be “cushy and comfy” for his employees. These figures must be enough to replace the 14 years my husband has in at your company, the fact that we have to completely start over somewhere else – without the same pay – and allow our families to keep our houses. In my opinion, this man will never offer enough for the damage that has already been done and the wrath we are about to endure.
He smugly accepts a huge salary and bonuses while he threatens to close our plants because we aren’t making a profit large enough. However, he fails to announce to the world that these 5 plants fund the off shore plants and the off shore plants rake in the profits. How do you expect my husband and his co-workers to produce enough to finance all of these operations? Meanwhile, he is taking machines out of my husband’s plant and sending them to non-union plants. It’s a disgrace! AMERICAN Axle …yeah, real American.
I resent the fact that he is turning our lives upside down. I resent the fact we have to start over. I resent the fact we may have to TRY and sell our home and my kids may have to leave their school and the friends they know. Above all, I resent the fact that this is all because of 1 company’s greed!
I hope the whole Dauch family and members of the board can sleep well at night with their million dollar salaries; knowing their jobs and salaries are safe. While we are worrying and wondering how we are going to repair this financial and emotional mess that he has thrown us into. We can only hope that he acquires a conscience before it’s too late!
ssmithblueskies @ Apr 14th 2008 1:01PM
Is Arlington going on a 3 or 4 week strike. I am finding it posted as both ways
Ann @ Apr 24th 2008 1:57PM
We are a smaller plant in MO that supplies GM and Chrysler we are being told the reason for our layoff is because of AA Is GM in MO layed off because of shortage of parts I just want AA Management to know I am behind their employees 100% If they are in trouble because of money they need to look at cuts in pay with management and # of management jobs not their Loyal labor workers non of our so called American made jobs should have ever left our Country your not only hurting the families that work for you, you're hurting ALOT of other families from other companies(like my family and all of my co- workers who have been loyal since the day our company opened the doors) as for the people who think all UAW workers have cushy jobs they need to be more informed before shooting off their mouths. Me along with alot of my co-workers bodies are broken down BECAUSE MANAGEMENT continues to keep taking bodies away and adding more work on the remaining people so as far as having time to read the newspaper you are WAY off When we are working and not laid off because of management one body does the work of what use to be 3 bodies and it isn't always as easy as others seem to think it is. I take pride in my work and give my employer 100%. I earn my paycheck. In my area of the plant we are down to 25 people (when we're not laid off)with FIVE BOSSES. You tell me that makes since when a company is supposedly trying to stay competitive. You remember when your boss adds more on you ,and they will eventually, and tries to cut your pay which you have earned, to do what you say we should do.NOTHING. I also pray that Management and the Owner of the company and their families develop a conscience before my family loses everything that I have worked for and earned. I am a single mother of two and get no financial help from anyone. I have missed out on alot with my kids over the years because of being a loyal employee, trying to make ends meet, this is how I am repayed. So, again I pray God gives you a conscience, because if you had one you would not be able to sleep at night from what you are doing to all of your loyal employees and all of the other families lives you are destroying and you would get us back to work.
cindy cross @ May 1st 2008 9:22AM
Remember the big shots don't care if the little guy can feed his family let alone pay the bills on their measly $10.00 starting pay, lets remember where gas prices are, food prices are crazy, all the big shots are people that feed on the lowly working person