American Axle workers strike

Industry-watchers say a lengthy strike at American Axle and Manufacturing could bring General Motors' pickup and sport utility vehicle assembly lines to a halt. They also say that may not be such a bad thing. That's because GM has a large supply of pickups and truck-based SUVs, all of which are equipped with American Axle's products. GM is American Axle's largest customer. About 3,600 workers represented by the United Auto Workers at five plants in Michigan and New York went on strike against American Axle just after midnight Monday. They continued to walk picket lines yesterday, with no talks scheduled. Each side says it's waiting for the other to return to the bargaining table. (AP)

Source: WLKM's News Site

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The smallest minority on earth is the individual. Those who deny individual rights, cannot claim to be defenders of minorities. - Ayn Rand

The most basic human right is the right to self defense. Those who deny the right to self defense cannot claim to be defenders of human rights - Buck Hicks

You know American Axle could save millions if management would do there jobs better.

***"I DONT' GIVE PEOPLE HELL, I JUST GIVE THEM THE TRUTH AND THEY THINK IT'S HELL" - Harry S. Truman***

The employees could save American Axle millions if they did their jobs right. What Axle needs to do is a freakin' random drug screen on every person in the shop and bring in SCAN from the county and get rid of the crud that is holding this company back. No wonder there is talk of moving shop to Mexico, no wonder Axle has been sued because of faulty product traced back to the TR plant. Give me a break, $28 dollars an hour to build what? A lawsuit and a HABIT!!! Yeah, I think not. I hear talk about Axle not being the place it once was. You think? When you add a few dirtbags, a little meth, some weed and crack. Well, I imagine it probably is not going to be the same place it once was. For the old timers that have been at Axle/GM for extended period of time, it's hats off to you. For you, the few and far between that actually know what it's like to have worked in a decent shop, it is a shame of what it has become. To the rest of you "Youngens" who have helped to drive this once thriving Factory to the ground, well join the rest of the State and start struggling!!!

I know many people who work at axle, and I respect what they're all going through. I also understand what it's like to be on the other side.

So here's my question or statement...

I don't see this ending well for the employees. I don't see this necessarily ending well for Axle management either. I think the winner will be GM.

A couple of thoughts to ponder:

The current economy, especially of the area, is not empowering to the worker.

A word of advice the union...something I learned a long time ago...If you're going to cave, cave early. If you're going to drag this out...you'd better win something.

Management has said it wants to reduce the overall compensation from $65 an hour, including wages and benefits, to $27. The Union said that to do make such compensations would require an hourly rate of $14 an hour. Other benefits changes including increasing co—pay for prescription drugs by American Axle would also effect vision coverage and freezing pension benefits, replacing them with a 401 (k) plan.


Wondering if anyone knows any specifics about what kind of cuts they are wanting to make. I recall hearing on the news sometime last year that GM released the amount of money they had spent on prescriptions for their employees. It was a astronomical amount (in the millions) and just for one medication, Viagra! If that's the kind of "benefits" management is trying to cut, with the economy the way it is, I'm afraid the Union is in a uphill battle.

This entire Axle strike scares the heck out of me. Truth is, it might be easier just to write "Send my job to Mexico" right on their picket signs.

Don't mistake me...I am a union guy through and through;(Not AAM) but in this type of economy where folks are putting heating costs on their credit cards at 21% and deciding whether to pay their mortgage or their taxes (can't afford both!) ...taking a chance on closing a plant like Axle by going on strike is more than scary.

I have friends who have worked there since the day the graduated high school. They make $22-26 an hour- not including benefits and retirement. Now, these folks never had to scrape by on $6, $7 or $8 an hour like the rest of us, and I am honestly happy for them. However, what in the world are they gonna do if they close this plant? When you are used to making $80K a year and have no experience working anything except on the line in an automotive field...what the heck are you gonna do? Unless you have been thinking ahead and have about a million dollars in the bank; you might have some tough decisions to make.

I suspect if/when AAM closes we will see even more houses for sale as folks head to where the weather is warmer and the economic climate has a light at the end of the tunnel. Here's a clue; it AINT Michigan.

The RUMOR RUNNER attempts to verify and chase down a variety of rumors in and around St. Joseph County.

Doesn't anyone wonder why the strike blew up now? GM doesn't care if AA isn't producing the goods, they can't sell the inventory they've got, or find places to stockpile any more. On top of that, AA management would certainly have known that the kind of ultimatum they presented to workers would cause this kind of reaction? Don't forget about all the tax abatements that AA has had over the years from TR to keep them here. BUT if their workers go on strike the company can shrug its shoulders and say "it's not our fault your people don't want to work" we have no choice but to move to Mexico (and take all the money they've saved on tax incentives with them). Rumor Runner has one thing right though, Michigan's economy won't improve anytime soon, and TR hasn't seen anything yet in terms of the losses that other areas have seen. You can't give a house away in the Southfield and Brighton area!

Random thoughts:

Silent -- My understanding (this is from about 12 or 13 years ago) was that if GM shut down a plant because of the market they had to pay out substantial layoff packages. If a UAW strike...anywhere...shut down another plant the benefits were substantially less. If this is still true, then GM is grinning ear to ear.

My question...irregardless of the quality issues...how long would it take to fill that building with $12 labor?

I talked to some of my friends tonight who are on the picket line...they are willing to take cuts, but something less substantial that AAM has put forward.

Frankly, I wouldn't have been surprised to see truckloads of equipment pulling out already headed for Mexico.

I see the union leaders getting high fives and congratulations and adulation down at the local hang outs...what will be happening 8 weeks from now?

This whole thing just feels ominous.

I can't escape the feeling that GM or AAM really wanted this strike. What is the end game?

Originally posted by pepa

You know American Axle could save millions if management would do there jobs better.

<blockquote id="quote">quote:

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***"I DONT' GIVE PEOPLE HELL, I JUST GIVE THEM THE TRUTH AND THEY THINK IT'S HELL" - Harry S. Truman***

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This is a classic line from someone who's probably never signed the front of a paycheck.

The problem is AAM employees seem to have this feeling of entitlement. Ask some of the Lear Corp employees about benefit reductions and pay cuts. They have made many sacrifices over the years to keep their jobs, as have other professionals. It is unfortunate but this is not a new thing! Many families have been struggling through this difficult period of economic uncertainty. The problem is many AAM employees have been living above their means and have now come to realize that their livelihood is now at stake. Very few employees can complain about their wages considering they are doing basic factory line work. Do they think they can find another factory job in Michigan that will support their currant cost of living? We are all struggling, you are just the last to feel the effects.

I was listening to Michigan Public Radio today, and they noted the GM plants which had shut down because of the UAW strike at AAM. They said that the employees would be eligible for state unemployment and union strike pay...not layoff pay. Interesting. Just as I thought. GM is laughing all the way to the bank.

So, GM saves money by shutting down plants for a few or more weeks, then they announce that they'll be buying axles from another vendor...hmmm. Could happen. We could turn the big blue box into a roller rink.

BTW - I'm feeling sarcastic today.

If anyone's studied the history of the large automakers (not their version, the truth), they'll see that way that they have used the unions to get rid of competition (mainly in Europe), cut down on labor (my pa used to say one man's pay increase, was another man's job), and deal with downturns in their economy (we're overstocked - we need a strike).

This is just another chapter. Michigan's economy for the past 100 or so years has been mainly based on the fact that the "Big Three" were based here, and the assumption made that loyalty would keep them here.

Always complacent, and always slow to catch on to changes in the market and world supply, this is really the "Big Three's" last stand before they disintegrate completely. Using the workers to save their hides is all part of the same pattern.

Originally posted by BillyD

The employees could save American Axle millions if they did their jobs right. What Axle needs to do is a freakin' random drug screen on every person in the shop and bring in SCAN from the county and get rid of the crud that is holding this company back.

I agree with you BillyD. I know of quite a few times that workers from there have been busted with drugs, hit and run fatal accidents and others. I am told that there is even jokes about an "American Axle Wing" at the County Jail...what a legacy, huh?

Ok...I feel like I'm beating a dead horse here, but I heard some more news today.

From the AP Monday:

DETROIT - Automakers got hit where it hurts in February, with U.S. sales of their most profitable vehicles "trucks, sport utilities and large sedans" plunging as consumers reacted to high gas prices and the possible recession. General Motors Corp. and Ford Motor Co. announced second-quarter production cuts in the face of the falling sales.

GM reported a sales decline of almost 13 percent for the month while Ford's sales slumped 7 percent, Chrysler's tumbled 14 percent and Toyota's fell 3 percent. It was expected to be a difficult month for automakers as consumer confidence continued to slide. Declines in home construction also have significantly weakened truck sales.

So, from GM's point of view...what could be better than have the UAW put workers on the street rather than GM laying them off. Is the UAW helping the worker or management right now? The UAW allowed themselves to be backed into going on strike rather than holding fast and having workers layed off. I guess the $200 a week will buy the vasaline.

And there are guys on here complaining about how management runs AAM...The union is laughable.

I have an inside source @ AAM and within the company are reports of fights going on in bars in the metro Detroit area between AAM union people & union members from the GM plants. This is due to the fact above of the GM employees getting the same unemployment benefit that everyone in the state of MI gets, no more. One difference I was told was that the additonal lay off pay was bargained out of their contract.

Oh, did I mention that both of these groups are UAW? When you have inconsistent contracts, and the supplier is making more than the GM plant workers (which AAM was until the strike) there is going to be friction. AAM is the last supplier to have their contract brought up for the cuts and changes that everyone else already had to make in order to keep their jobs. Channel 3 reported that somewhere aroudn 12,000 people are currently laid off right now due to 3600 AAM employees on strike. These 12,000 other people are mostly UAW members at the GM plants. SMART THINKING UAW, screw your own people!

Personally I think if it was a local decision, a contract would have been hammered out already. Its the numbers of union members in detroit that are playing hard ball. While I don't support the strike, I do think the local people are not totally the ones to blame. sure there are some bad eggs, but I believe most just want to keep their jobs.