American Axle says union rejected competitive offers

By TOM KRISHER, AP Auto Writer

Tools

By Beth Boehne

Story Created: Apr 22, 2008 at 5:19 PM EST

Story Updated: Apr 22, 2008 at 5:19 PM EST

DETROIT (AP) — Talks between American Axle and Manufacturing Holdings Inc. and striking United Auto Workers took a turn for the worse Tuesday as the company issued a statement saying the UAW has rejected wage-and-benefit offers that are better than those paid by competitors.

The company also said if the UAW won't consider "a U.S. market-competitive labor agreement" then it will have to plan for potential closure of some or all of its original U.S. facilities.

"In order for AAM to be able to compete for new business and sustain employment at the original U.S. locations, the UAW must offer AAM economic terms and conditions that are comparable to those it has already granted to AAM

The UAW's latest proposal, made April 14, had a total wage-and-benefit cost that was nearly double the market rate at UAW-represented competitors, the statement said.

A message was left for UAW spokesman Roger Kerson.

About 3,600 UAW members have been on strike at American Axle's five U.S. facilities for 57 days, since Feb. 26.

American Axle makes axles, drive shafts, stabilizer bars and other components mainly for General Motors Corp. pickups and large sport utility vehicles, but it also makes small brake or suspension parts for GM cars.

The strike has caused GM to curtail production at about 30 factories, but so far it has had little impact on the automaker because trucks and SUVs aren't selling well and GM has ample stock.

Also Tuesday, GM announced that it would reopen its Detroit-Hamtramck car assembly plant that had been closed due to a parts shortage from the strike. The plant's one shift will return on Monday and resume making Cadillac DTS and Buick Lucerne large sedans, spokesman Dan Flores said. The plant had been shut down since March 28.

American Axle has said its total U.S. hourly labor cost including wages and benefits is $73.48, three times the rate at its domestic competitors. Workers say the figure includes retiree health benefits and other items that shouldn't be included in the cost.

But the company's statement said agreements agreements with competitors include a total hourly labor cost of about $30 per hour.

UAW President Ron Gettelfinger said during the weekend that the pace of negotiations has been "excruciatingly slow," which he says is the company's strategy. He said the union has been doing the giving in the talks.

The statements came after both sides reported progress last week.

Company spokeswoman Renee Rogers said both sides are still negotiating.

GM shares fell 76 cents, or 3.6 percent, to $20.51 Tuesday, while American Axle shares fell 73 cents, or 3.3 percent, to $21.61.

___

On the Net:

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

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

General Motors Corp. http://www.gm.com

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