THREE RIVERS — Thousands of union workers at American Axle have been on strike for two months.

A worker in Detroit says a settlement is in the works that could include reduced pay, buyouts and buy-downs.

But United Auto Worker negotiator David Morris says he doesn't know where that information came from.

Workers on the picket line in Three Rivers have heard rumors and are waiting for news.

"We have a feeling and a belief that what we are doing is right and every time someone honks and waves, it makes us feel better," said Scott Simon, an American Axle worker.

He has stood outside the American Axle plant in Three Rivers with other workers for two months picketing and waiting.

"You sometimes wonder. You hear so many rumors," said Jay Schleiman, another worker.

Recent rumors including talks that a possible settlement would reduce wages from $28-$30 an hour to $17-$25. In exchange, American Axle would pay each worker $90,000 over a three-year period.

"Rumors are strictly that. They're not fact, so we don't have anything to base it on at this point," said Schleiman.

But Detroit worker Ken Krzycki says union officials gave him specifics.

"I heard they finally came to hopefully an agreement that they are going to announce shortly. It's going to be 3 years of buy-downs at $30,000 each year, $140,000 buyouts if you want to sever all your ties with the company," he said.

The company has said it needs to reduce wages to stay competitive.

Morris would not comment on the status of the negotiations but he hopes to have a deal worked out in a few days.

People in Three Rivers say they're ready to get back to work, but not if wages are cut 50 percent.

"A 50 percent cut is not reasonable," said Schleiman.

"I would prefer to go back under the right conditions," said Simon.

And they're ready to stand their ground for as long as it takes.

The American Axle strike has taken a lot of other workers off the job, losing dozens of GM plants nationwide. More than 600 local people were laid off.

The Explorer Van plant in Warsaw laid off 175.

Mishawaka's H2 plant laid off 400 workers at the beginning of March.

NylonCraft laid off 80, but brought back half of them.

Company officials there say if the strike ends, it will take them a few days to get back to full capacity.