The latest contract offer from UAW officials to American Axle owners was seen as “disappointing” on Thursday, effectively extending the 6-week strike at GM’s key supplier. The company said the UAW offered a “slight improvement” from its previous proposal in talks which resumed on Wednesday, the first time the two sides sat down for formal negotiations in a month.
UAW is asking for figures between $40 and $60 per hour including wages and benefits for the workers it represents, while Axle is prepared to pay about half that, at between $20 and $30. Axle previously paid $73.48 per hour, on average, to each employee, as per the The Detroit News.
Countering the proposal, American Axle offered buyouts for UAW workers who’d prefer to leave the parts manufacturer. Company representatives went on to say the move is required to keep the company competitive with other suppliers, such as Dana and Delphi, who had to cut wages in order to exit bankruptcy. Otherwise, it would have to consider shuttering its original U.S. plants.
The UAW pointed out Axle’s $37 million profit in 2007, as well as Chief Executive Richard Dauch’s pay package amounting to $10.2 million, indicating the parts supplier is far from the bankruptcy status of its peers.
About 3, 650 American Axle workers represented by the UAW are striking at five plants.
