UAW chief unhappy with pace of American Axle talks

By TOM KRISHER, AP Auto Writer

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By Beth Boehne

HAMBURG TOWNSHIP, Mich. (AP) — The president of the United Auto Workers says he is optimistic that the union can settle several contract disputes at General Motors Corp. factories.

But Ron Gettelfinger wasn't as hopeful Saturday when it came to an eight-week strike at parts maker American Axle and Manufacturing Holdings Inc.

Gettelfinger told reporters before speaking to a Detroit-area Democratic Party dinner that American Axle isn't negotiating much.

About 3,600 workers at five American Axle plants have been on strike since Feb. 26.

"I would hope we could resolve Axle, but we cannot negotiate an agreement with ourselves," he said before a speech to Livingston County Democrats. "It seems like it's all give on our side."

The UAW also is on strike at a GM plant near Lansing that makes hot-selling crossover vehicles, and it has threatened to strike Tuesday at a plant in Kansas City, Kan., that builds the popular new Chevrolet Malibu sedan.

Both plants have unresolved local contracts that govern overtime, assembly line speed, staffing and other issues not covered by the national contract signed last year.

"I'm hopeful we can get GM resolved," Gettelfinger said.

Negotiations were continuing through the weekend at the GM plants but recessed Saturday until next week at American Axle. The parts supplier makes axles, stabilizer bars, drive shafts and other components. GM makes up 80 percent of its business.

The American Axle strike has hampered production at about 30 GM factories in the U.S and Canada, mainly those that make components for and assemble pickup trucks and large sport utility vehicles.

Gettelfinger said in his speech that American Axle Chairman and CEO Richard Dauch made $258 million from 1997 through 2007 but wants workers to work for nothing.

"They use the word competitive until they wear it out, but are they competitive with their own salaries?" he asked.

American Axle has said in the past that Dauch took risks to start the company at some former GM facilities.

A message was left for American Axle spokeswoman Renee Rogers.

Gettelfinger also told reporters that the UAW does not want to hurt GM's sales, but that the union is amazed the local contracts have gone unresolved for so long. GM spokesman Dan Flores on Saturday would say only that the company hopes to end the disputes soon.

American Axle has said its U.S. hourly labor cost of about $73 per worker, including fringe benefits, is three times the rate at its domestic competitors and too high for it to win new business.

American Axle, formed from parts plants sold by GM in 1994, wants to cut the labor costs to $20 to $30 an hour, which would be similar to competitors and to what will be paid to some new hires under agreements reached between the UAW and the in-house axle-making operations at Ford Motor Co. and Chrysler LLC.

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On the Net:

American Axle and Manufacturing Holdings Inc.: http://www.aam.com

United Auto Workers: http://www.uaw.org

Sunday, Apr 20 at 6:36 PM Mitch wrote ...

Confused, the rate of 73.00 per hour includes all benefits and taxes the employeer has to pay for the employee. This is the total of your compensation package. 36.50 per hour is hourly pay rate. I am not sure about inflation, but I agree they seem high. I can believe anybody there would get 36 bucks an hour. That would cause about any company to move to Mexico.

Sunday, Apr 20 at 3:36 AM Confused ! wrote ...

I was always under the impression at a good company the benefit package normally runs equal to the hourly rate, so if they say its currently at $73 then the workers are getting $36.50 an hour? Well guess once they move to Mexico they will say $73 per week is to much to pau to right? These numbers have to be inflated.

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