UAW / American Axle & Manufacturing Negotiations Update
AAM-UAW Bargaining Resumes - Current UAW economic proposal is not market cost competitive
April 10, 2008 -- Negotiators representing American Axle & Manufacturing, Inc. (AAM) and the UAW met at the bargaining table for the first time in over three weeks on April 9, 2008. At this meeting, the UAW presented a new economic proposal to AAM.
Although it was a slight improvement from the UAW's previous bargaining positions, the all-in labor cost proposed by the UAW is still approximately 200% of the market rate of AAM's competitors in the United States automotive supply industry.
AAM expressed disappointment over the UAW's failure to make proposals that address the competitive reality AAM and its UAW-represented associates jointly face in the U.S. driveline marketplace.
AAM needs a structural change in labor costs at its original U.S. locations that is comparable to the agreements the UAW has previously made with AAM's competitors in the United States automotive supply industry. If the UAW continues to refuse to make realistic economic proposals, AAM will be forced to consider closing these facilities.
AAM has no desire to close the original U.S. locations. AAM's preferred approach is to reach an agreement with the UAW on a new U.S. market competitive labor cost structure for these facilities. If such a market competitive agreement is accomplished, these facilities will be able to bid competitively for new business and AAM will be able to continue investing in these operations.
AAM has offered generous buy-outs for associates who do not wish to continue to work for AAM subject to a competitive wage and benefits package. AAM has also offered to make annual buy-down cash payments to associates who accept a competitive wage and benefits package. AAM's proposed buy-outs and buy-downs will provide its associates and families a financial cushion and soft landing during the transition to a new U.S. market competitive labor cost structure. These proposals are similar to those that have been successfully used by Chrysler, Ford, GM and Delphi in recent agreements with the UAW.
Negotiations are continuing. AAM remains hopeful that the International UAW will soon put forward economic and operating proposals that will allow AAM to compete on a level playing field with its competitors in the United States automotive supply industry and maintain its manufacturing operations in the original U.S. locations.
Source: American Axle & Manufacturing, Inc.
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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 not too late!