UAW local approves American Axle contract, brings end to strike

by Troy Kehoe (tkehoe@wsbt.com)

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Workers at American Axle in Three Rivers

Workers at American Axle in Three Rivers walk off the picket line on Thursday, May 22, 2008. (WSBT photo)

By WSBT News1

THREE RIVERS, Mich. — Emotions ran high outside the American Axle Plant in Three Rivers late Thursday night as nearly 800 striking workers learned they'll soon be headed back to work.

Word came from Detroit just after 10 p.m. that more than 2,000 American Axle employees who are members of United Auto Workers Local 235 overwhelmingly ratified the deal. Local 235 in Hamtramck, Mich. is the largest local in the company with 1,983 members.

It brings an end to the 87-day strike called by the UAW, and pulls 3,650 workers off the picket line.

The vote means those workers likely will return to their jobs next week, ending a walkout that has crippled General Motors Corp.'s production of large sport utility vehicles and pickup trucks.

In a statement released late Thursday night, the UAW said 78 percent of workers at five American Axle plants in Michigan and New York voted in favor of the four-year deal, while 22 percent voted against it.

UAW Local 2093 President Erv Heidbrink said 80 percent of the 800 American Axle workers in Three Rivers voted to ratify the deal there.

He announced the news to a crowd gathered outside Local 2093's union hall Thursday night, eliciting cheers and applause. Similar cheering was reported outside the Three Rivers plant, as workers packed up their picket signs and left.

It was a far different atmosphere than earlier in the day. As the clock ticked toward the end of voting at the final UAW Local in Detroit, nerves were showing.

"We're anxious. We're certainly waiting to hear that news," Heidbrink said at the time.

When it finally came, Heidbrink said there was only one word that came to mind: relief.

Workers outside Local 2093 agreed, though they called the ratification and the deal itself bittersweet.

"We hoped for a lot better," said Marcia Ballard, a 28-year veteran American Axle employee, who plans to take the buyout offered by the company under the new deal. "But this keeps the plant open. That's good for some of us, and it's good for the community."

Still, there is no denying the sting of the deal's terms for some workers.

American Axle told workers it needs a wage structure that is competitive with other U.S. auto parts makers so it can earn new business.

To achieve that, the company pressed for the deal to include wage concessions that will cut some workers' pay by as much as 50 percent.

Under the deal, workers say starting pay would be dropped to $10 an hour, and the average worker's pay would be reduced from $28 an hour to between $14 and $18 an hour.

Local 2093 Bargaining Chairman David Morris told WSBT that pension and health care benefits for those workers and retirees were negotiated and left intact. Workers also have the choice of taking a $55,000 early retirement incentive or up to $140,000 to leave the company.

Under the deal, American Axle will close its Detroit and Tonawanda, N.Y., forge operations.

The nearly 3-month strike forced GM to cut production at more than 30 factories. It also caused thousands of layoffs at other auto parts suppliers, including AM General's Hummer 2 plant and Nyloncraft in Mishawaka.

The H2 plant in Mishawaka has had nearly 400 employees on a temporary layoff for more than two months because of a lack of parts being shipped by General Motors Corp.

At Nyloncraft in Mishawaka, about 40 of the 80 workers temporarily laid off have already been called back in the last three weeks, Jim Krzyzewski, president and chief executive officer, said.

Nyloncraft's vice president of manufacturing told WSBT Thursday night that more workers would be called back next week if the American Axle deal was ratified.

Explorer Van in Warsaw also laid off 150 workers nearly a month ago because the strike left it with no Chevrolet and GMC vans to convert.

Still, in Three Rivers, the overwhelming feeling was elation simply that the plant will be left open.

"American Axle said they needed to be market competitive, and this is market competitive. We should grow, and live to fight another day," said Heidbrink.

Workers at UAW Local 2093 expected the company to call in electricians and other skilled trades workers over the Memorial Day holiday weekend to prepare the plants to reopen. They expect production to resume on Tuesday.

In a release to the media late Thursday night, American Axle spokesperson Renee Rogers said the company will wait for written vote confirmation from the UAW before commenting on when operations might resume.

"We expect to release more information on Friday," she told WSBT.

The Associated Press and South Bend Tribune contributed to this report.

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