The seven-week long American Axle strike that slowed GM’s car and truck production could be over by this weekend, as UAW representatives and company executives are coming closer to an agreement. An indication that the negotiations are moving in the right direction is the fact a protest rally planned by the striking Axle workers for downtown Detroit has been canceled.
The Automotive News reported that a source close to the discussion believes a tentative deal could come before this weekend. “They are very close,” the source said. “Both sides have finally come to their senses.”
Three disputed areas are being negotiated, including wages, health care legacy costs, and job classifications. American Axle Chief Executive Richard Dauch has been seeking lower wage rates to stay competitive with other suppliers, some of whom are in or near bankruptcy.
GM has continued to use its inventory of parts, though slowed production in an attempt to wait out the strike and not have to stop assembly lines completely, but it’s believed more than 140,000 vehicles have not been produced on account of the strike.
Once the American Axle strike is resolved, GM will have a number of local strikes to deal with.
