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.
04/11, 9:33 AM
posted by:
injunraiv
Wow… From $73.48 down to 20-30. That’s quite a drop!
04/11, 9:54 AM
posted by:
6ix
OMG!!! They’re getting paid THAT much for assembly-line work???? No freakin’ wonder American Axle is trying to send the jobs to Mexico. Don’t blame them. To all the UAW blood-suckers, this is what you’ve deserved for a long time. You’ve demanded far, FAR too much and now you’re getting what’s coming to ya. Janitors shouldn’t be driving Vipers.
04/11, 10:20 AM
posted by:
400horseSS
^ You’re free to join us for some assembly line work, the funny thing is the ones talking the most **** (Deanster) wouldnt last 2 hours. And janitors drive ‘Lacs, and 6ix I agree $700 a week is an insane amount of money, someone in China or Russia is only making $20 a week, we are some greedy ****s aren’t we.
04/11, 10:25 AM
posted by:
400horseSS
$73.48 is total compensation, insurance and hourly pay included, base hourly pay is $26.68, for the umpteenth time UAW workers DO NOT make 73.48 an hour I repeat DO NOT make 73.48 an hour.
04/11, 11:39 AM
posted by:
johnnycanuck
Usually in life you get what you pay for. Is an assembly line worker worth $73.48 (yes, I know 400horse, that’s total compensation)? Well, according to sweat shop factory owners in 3rd world ****holes- not even close- but we don’t live in a 3rd world ****hole, at least not yet. What I fail to understand- and if this sounds like a defence of the union position so be it- is if the company pays its employees so little that they cannot afford to purchase the product being manufactured, then who exactly are they producing for? And this especially applies to North America, because where else are you going to sell to- the 3rd world? I don’t think so. They’re trying to sell the same **** to us!
04/11, 11:57 AM
posted by:
Get Real
I think China pays $3/DAY. PER FREAKING DAY !!!!!!
Any wonder every business wants to set up there ??
As a bonus, employees can be threaten with full government support.
04/11, 12:10 PM
posted by:
AmericanMade
greedy, greedy, greedy…
04/11, 12:29 PM
posted by:
ktulu
they won’t get that kind of $
04/11, 3:18 PM
posted by:
ClarksonForPresident
$73.48 (total comp) an hour? that’s on par with 1st year associates at jones day (based on 40 hr weeks)…
never mind that many pull 110 hour weeks, no overtime… and almost all are top-of-the-class at ivy leagues.
anyone who thinks they deserve this kind of money holding a wrench is NUTS.
04/11, 5:14 PM
posted by:
400horseSS
^ its called manual labor not sitting infront of a computer.
04/11, 7:02 PM
posted by:
jackjimturkey
Go irish!
04/12, 10:32 AM
posted by:
jayjc08
Really, I could honestly care less about how much China is paying it’s workers, the quality and ingenuity often shows on the formed reputations of those products as frightening. Everything from children’s toys, to peanut butter to engine blocks, they are world renown for low quality products. I don’t want to hear any bull**** about how they make those money cuts because their unnecessary in such a product, because it obviously is a downfall compared to other companies willing to put a little bit of time into the quality of their products.
24$ is still a lot, starting wages. It’s not that I’m not proud of these people making this kind of money, but that it’s obvious greed that causes it, and the total dis consideration on the UAW’s part for these manufacturers. Henry Ford was right by putting some profit back into the producers pockets, but it’s ridiculous when a Union literally forces those wages out of the manufacturers, and drives the company to near bankruptcy and allows other foreign companies to tear up the market.
04/12, 1:30 PM
posted by:
ClarksonForPresident
400HSS:
no it is called demand and supply of labor. i have no interest in disparaging their work, but it is beyond dobut that assembly line workers can be had for a dime a dozen these days.
it hardly matters how demanding assembly line work is–they can be working 300 hour weeks for all i care. if more people out there are willing to do the same job for less, UAW is in no position to negotiate.
you think if Am Axle pushed the wage reduction thru the workers will still be around? if so, AA is paying too much now.
04/12, 1:37 PM
posted by:
ClarksonForPresident
JJC08:
i’d put the downfall of domestic manufacturing on their own undoing. the two most spectacular product failure in my life–a GMC that died completely at 70k mile and a box fan that caught fire–both carried a “proudly made in the USA” sticker.
if it takes foreign competition to force the domestic manufacturers to clean up their acts, thank god for globalization!
04/12, 8:59 PM
posted by:
jdasch1
Good god…$73 and hour. How can American Axle survive with those wages?? Good thing we are in an economic downturn here in the US. Maybe they have a chance to finally drop the Union! They will puss out in the end, bowing to the mighty GM board. too bad.