The near three-month old American Axle worker strike that crippled GM’s truck and SUV production capabilities, along with passenger car production to a lesser extent, could be over later on today. The proposed contract that would slash the UAW workers’ wages at the supplier is going to a vote at American Axle’s main Detroit plant, with smaller Axle facilities already endorsing it.

This past Friday, the UAW and American Axle agreed on a four-year contract involving plant closings and huge wage cuts. Part of the agreement includes worker buyouts, retirements and cash buydowns, according to Automotive News. Some of the cuts include lowering hourly wages to between $10 and $26, eliminating some holidays, senior workers losing a week’s paid vacation, and reduced shift premiums. Eligible workers who stay and accept the new terms would receive payments of up to
$105,000 paid over three years.

If the contract is approved, American Axle will cut close to 2,000 of its 3,650 workers via layoffs or buyouts, the company estimates. Nearly half of that number, more than 900 workers, would be cut from the Detroit facility. $10 to $26 and provides payments of up to $105,000 over three years for workers who stay. Some holidays would be eliminated, the most senior workers would lose one week’s vacation and there would be reductions in shift premiums among other cuts.

GM’s business accounts for nearly 80 percent of American Axles’ revenue, making it the biggest customer of the company by a wide margin. The worker strike began as a result of American Axle president, Ron Gettelfinger, demanding workers accept wage cuts to reflect what others make at competing suppliers in order to stay competitive.

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