AFSCME 3357-HOF'S BLOG

20 GM Plants Slowed or Idled by American Axle Strike

As of today, 20 General Motors plants will either be slowed or idled due to the strike at American Axle. The strike of 3,600 American Axle workers is now significantly affecting GM plants with 27,258 workers, a third of GM's workforce. Resolution of this strike is proving to be difficult because American Axle is reportedly asking its employees to cut their pay in half from $28.15 per hour to $14.50. This despite the fact that American Axle is profitable, at least it was in the financial period before this particular strike. American Axle is apparently offering buyouts from $80,000 to $110,000.

There appears to be a big difference between the way American Axle is going about its negotiation and the way the Big 2.8 did. The buyout packages were negotiated with the union in the case of the Big 2.8. American Axle seems to be taking a "take it or leave it" approach.

Some commentators are criticizing the UAW for allowing a small supplier to shut down large customers. These commentators fail to realize that contract negotiations are undertaken at the local or company level. If I were an American Axle employee, no way would I let them cut my wages in half without striking. These workers don't even have UAW Legal Services benefits to buffer them from their creditors.

For an interesting perspective on the American Axle strike and American Axle's history of outsourcing jobs to Mexico & beyond, check out Joe's Union Review blog.

Primary Source: Detroit Free Press