GM gets involved to help end American Axle strike

by Troy Kehoe (tkehoe@wsbt.com)

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Striking American Axle workers wave to passing drivers in Three Rivers

Striking American Axle workers wave to passing drivers in Three Rivers on Thursday, May 1, 2008. (WSBT photo)

By Jim Pinkerton

THREE RIVERS — There is a new optimism on the picket lines at American Axle after one of the nation's largest automakers offered to pay up to help get striking workers back on the job.

Late Thursday afternoon, General Motors announced it will pay $200 million to help production start back up again.

3,600 American Axle workers went on strike 10 weeks ago. Most work at the company's Detroit plant, but about 700 are employed at the Three River's plant.

The strike has crippled GM's production and forced several local companies, including AM General's H2 plant and Nylon-Craft in Mishawaka, to temporarily lay off workers.

According to a government records, GM intends for the money to be used to give temporary payments to buffer reduced wages for American Axle workers and fund employee buyout and early retirement packages.

It's not the final deal many on the picket line were hoping for, but most say it's a step in the right direction because it could put them back to work.

Mike Bultema has worked at the Three Rivers plant for 30 years, including 16 years when the plant was owned by GM. American Axle bought the operation in 1994.

He says life on the picket lines has been tough.

"It's been a pretty long 10 weeks," he said.

Bultema and other striking workers are earning just $200 in strike pay per week, and say it's been hard to get by.

That's why, when he heard about GM's offer, he was shocked, but pleased.

"It looks like GM is trying to end this," he said. "It's kind of a surprise. I did not expect it since we've not been General Motors here for 14 years. But General Motors can't afford to lose any market share. And they very much need the parts. So, maybe our strike has had some impact then."

Because of that, Bultema says he's "cautiously optimistic" that this could signal that a deal is imminent.

"It's a positive step," he said. "Whether or not it will bring an end result? I'm hopeful at this point."

Union leaders agree, but remain slightly more cautious about calling it a "deal maker."

"Absolutely, it's a positive step," said United Auto Workers Local 2093 Quality Representative Mark Bidelman. "But we're still looking for the same thing we have been: a fair wage and benefit package."

Bidelman says UAW negotiators have agreed to accept "concessions" or lower wages, but that workers at the plant can't live on what he says the company has proposed: 50-60% pay cuts.

As for the $200 million from GM?

Some worry it simply won't be enough to make up the difference without American Axle chipping in a larger share, too. Bidelman says that's the company's duty to its workers, after it brought in big profits in recent years.

American Axle spokeswoman Renee Rogers says she's "cautiously hopeful" that GM's offer will help the two sides reach the same goal.

"We hopeful we can obtain a quick return to work," she said. "That's a win-win-win for American Axle, the workforce and the UAW. We are hoping that the parties can quickly reach agreement to bring an end to this terribly costly and disruptive strike called by the International UAW against AAM."

Still, workers on the picket lines aren't holding their breath. But, after 10 weeks of walking, any glimmer of hope is priceless.

"I'm optimistic," said Bultema. "More optimistic than I was earlier in the week!"

Labor talks will continue Friday morning in Detroit. Any potential deal must be ratified by rank and file members before workers could return to their jobs.

Thursday, May 22 at 5:10 PM Jim from Ohio wrote ...

If unions want to fight for job security, start negotiating to keep jobs in America, instead of driving jobs out

Saturday, May 10 at 7:20 AM Compromise, people! wrote ...

America the Land of Opportunity does NOT mean that anybody is automatically entitled to a good life or benefits or one penny more than minimum wage. It means you have the opportunity to become great, and not at by putting hundreds of others out of work. That being said, if companies want dedicated employees, then they had better plan on paying decent wages and providing decent benefits. For the enconomy to work, both sides need to give and take.

Friday, May 9 at 9:29 PM Anonymous wrote ...

I use to have a union job. Rep. by USWA. We didnt like our contract and voted to strike. It lasted almost 4 months. The second contract to vote on while still on strike had LESS to offer than the one we voted to strike on.People running scared about to lose thier homes and cars voted it in. Within a year the factory closed up and moved back to Michigan. Please remind me the VALUE in paying union dues.

Friday, May 9 at 9:12 PM Karl wrote ...

I believe in fighting for your rights. But at what cost to your selves or others. AA employees will NEVER gain the wages theyve lost during the strike. I worked for a GM ISO certified supplier. I was 1 of many whose job was eliminated due to the strike.So many innocent people getting sucked under due to the strike. GM getting involved is the dumbest thing Ive heard yet. Dont let nobody fool ya. GM is looking for other suppliers and probably talking to CHINA as we speak.

Friday, May 9 at 8:06 PM linda from Bristol wrote ...

GM bailing out American Axle. Who's going to bale the company my husband worked for that makes outsourced parts for GM? NOT GM for sure. Who cares about the "little" guy that gets axled due to union methods. Does anyone ever think about these people?

Friday, May 9 at 6:45 PM Mitch wrote ...

What they are being offered is by no means working cheap. A large portion of them have no more of an education then the person serving your food at Wendy's. I do realize there are some college educated also, but that is not the majority. They will still get benefits and make pretty good money. Just not the adsorbate about they want or are used to. Live within your means and it's not so hard when hard times hit.

Friday, May 9 at 4:07 PM Mitch wrote ...

GM could get a different company to re-tool and start production sooner and a lot cheaper. This is not the only axle maker out there by far.

Friday, May 9 at 4:05 PM Todd wrote ...

The union has been inflating the economy for years..what are you talking about "Concerned". I say GM can save their money to make up for lost sales and American Axel just needs to hire replacements..there are tons of them out there who would love a good job at the comparable rate they want to pay. Why should a business pay the rate the union wants when the national comparison in the same business is much lower? Sounds like union monopoly to me.

Friday, May 9 at 4:00 PM Terry wrote ...

Does working cheap with no benefits make you a REAL AMERICAN? If that is the case, count me out! This is the land of opportunity, not China or Mexico, where you have no choice. Do not bash those who choose to better themselves. If you choose to work cheap, do not blame someone that prefers not to.

Friday, May 9 at 3:36 PM Anonymous wrote ...

To concerned. Joe is correct the unions are causing far more problems than good in the American economy. Union mentality, blame the government. Its about time the unions owned up to the fact that OVERPPAYED and UNDERWORKED unions are hurting the real American worker trying to make a living.

Friday, May 9 at 10:21 AM JUS A OBSERVER wrote ...

THE PICTURES OF GROWN MEN AND WOMEN WITH PICKETS AND THE TRASH CAN WITH A PILE OF WOOD IN THE BACKGROUND SAYS IT ALL.

Friday, May 9 at 9:45 AM Concerned American Citizens wrote ...

The unions aren't running this economy down, there trying to preserve it. Its the government running the economy down by not conrolling the gas prices to keep inflation down in all aspects of the economy. They have devalued our dollar to junk and we have very few citizens like the AAM worker that's willing to fight for Americans rights.

Friday, May 9 at 8:41 AM Mitch wrote ...

Get back to work! Be thankful you even have a job and hope you do not loose it. I say get rid of them and just hire replacements.

Thursday, May 8 at 11:39 PM GM Supervisor wrote ...

Good Luck A.A. UAW!!! I hope everything works out so you get back to work.

Thursday, May 8 at 10:52 PM Joe wrote ...

Unions are running down this economy. These people are just plan lazy and should get back to work or be fired and let folks who work hard work.

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