UAW and Axle could have a deal by weekend

[DainBramaged]

The bitter labor stalemate between American Axle and Manufacturing Holdings Inc. and the UAW appears to be over, with significant progress taking place at the bargaining table.

A tentative contract agreement could be reached by this weekend, a source familiar with the discussions told Automotive News late Wednesday.

" They are very close," the source said. " They could reach an agreement by this weekend. Both sides have finally come to their senses."

As with any protracted labor negotiation, there is no guarantee a deal can be reached, but this is the first sign of real progress in the dispute that has all but halted General Motors' SUV production in the U.S.

" Negotiations are continuing, progressing," said Renee Rogers, American Axle spokeswoman. " The process is moving along."

Because of the progress, the UAW earlier today called off a large protest rally scheduled for downtown Detroit, Wendy Thompson, the retired ex-president of UAW Local 235 in Detroit, told Automotive News.


UAW spokesman Roger Kerson could not be reached for comment.

Last week UAW President Ron Gettelfinger and American Axle CEO Richard E. Dauch met face-to-face. Following that, top representatives from both sides began meeting on a regular basis.

Progress on three fronts

According to the source, the two sides are making progress on three fronts: Wages, health care legacy costs, and job classifications. Dauch has been seeking fewer classifications to win more flexibility for his U.S. plants. He has also been pushing for lower wage rates, which the UAW has resisted.

To make wage cuts palatable to employees, the two sides have been discussing a round of buyouts and buydowns for existing UAW workers.

The strike by 3,650 UAW members began at five American Axle plants on Feb. 26 and has since idled or slowed up to 30 GM operations in the U.S. By Saturday, GM will have lost 142,782 production units since the strike began, according to the Automotive News data center. Most of the lost production has been SUVs and pickup trucks – and GM has months of inventory to sell in those vehicle lines.

http://www.autonews.com/apps/pbcs.dll/article?AID=/20080417/ANA02/296104345/1128 (subscription only)


Buyouts and buydowns, Gettel(giving us the)finger (potentially) caves in yet again.