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American Axle, UAW reach tentative deal

17.05.2008 11:15 Shopping - Source: toledoblade.com

DETROIT — A bitter 80-day United Auto Workers strike against an auto parts maker that has crippled dozens of General Motors Corp. factories could come to an end soon with a tentative contract agreement reached last night.

Renee Rogers, spokesman for American Axle and Manufacturing Holdings Inc., confirmed last night that both sides had agreed on a deal, but said she could not provide details.

UAW President Ron Gettelfinger said in a statement last night that the American Axle bargaining committee voted to recommend the agreement to members.

The union said details of the deal would be presented to members in Detroit tomorrow.

It was unclear when votes would take place or when the workers could return to their jobs. About 3,600 UAW members at five factories have been on strike since Feb. 26 over the company’s demand for reduced wages.

“This has been an extremely difficult struggle for our members and their families,” UAW Vice President Jimmy Settles said in a statement. “By standing strong during this strike, UAW members gave our bargaining committee the strength to face the challenges at the negotiating table.”

The work stoppage affected more than 30 GM plants and decreased production by 230,000 vehicles through April. GM also said the strike cost the company $800 million in the first quarter.

Workers on the picket lines in Detroit have hoped for a settlement since GM’s surprise announcement May 8 that it would throw in $200 million to help end the walkout. The offer was contingent on a quick resolution of the dispute, but the deal didn’t come for more than a week.

On May 1, workers said they were told by a union official that both sides were negotiating a settlement that included the closure of American Axle’s Detroit and Tonawanda, N.Y., forge operations. At that time, the deal included wage cuts for production workers to $17 an hour from about $28. Workers also were told that skilled trades employees such as electricians would see their wages cut to $25.50 an hour from roughly $32.

American Axle makes axles, drive shafts, and stabilizer bars mainly for large GM sport utility vehicles and pickups.

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