DETROIT (AP) — American Axle Chairman and CEO Richard Dauch said Thursday that five U.S. plants where workers have been on strike for nearly two months are holding back the auto parts supplier's overall ability to compete.

As he spoke to the company's annual meeting of shareholders at American Axle's headquarters, hundreds of striking United Auto Workers members rallied outside. Workers blocked traffic, carried picket signs and jeered vehicles carrying people to the meeting.

"We have to go where the business is," Dauch said in response to a question about global competitiveness from a union member who also is a shareholder. "We have to be competitive. We are competitive everywhere else in the world except the original five plants."

Dauch repeatedly cited the importance of the company's workforce in helping to improve quality and productivity. But he also said problems with absenteeism — a rate he says was 20 percent in Detroit, for example — stand in the way.

"It is absolutely criminal what is happening with people not coming to work," Dauch said.

A message seeking comment was left with a UAW spokesman.

Dauch said he remains committed to negotiating a deal. But he said since the UAW has reached deals with competing suppliers such as Dana Corp. to cut costs for the U.S. market, American Axle needs similar considerations.

"The competitors are going around us and laughing at us," Dauch said.

About 3,600 UAW members went on strike Feb. 26 at the five plants in Michigan and New York in a dispute over wage and benefit cuts the company is seeking and failing to reach a new contract agreement.

Steve Conner, a 46-year-old from Madison Heights who has worked for American Axle since 1994, asked Dauch about how long the strike would last. Dauch said he didn't know, and was sorry a strike came at all.

After the meeting, Conner said even a contract deal might not guarantee future work for the plants.

"I think he's still holding the hard line," Conner said. "I can't compete with China. I personally can't compete with Mexico."

At the meeting, shareholders re-elected three board members, including Dauch, to terms that run until the company's 2011 meeting. But they rejected a proposal to approve the company's 2008 long-term incentive plan.

Talks have continued between American Axle and the union after the company issued a statement Tuesday saying the UAW has rejected wage-and-benefit offers that are better than those paid by competitors.

"We can still compete here if we get the labor market competitiveness," Dauch said.

American Axle, which is scheduled to release its first-quarter earnings Friday, says it could close some or all of its original U.S. facilities if the UAW won't consider "a U.S. market-competitive labor agreement."

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 brought thousands of layoffs at GM and several other U.S. and Canadian auto parts suppliers. GM, American Axle's former parent, makes up nearly 80 percent of the parts supplier's business.

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 due to high gasoline prices.

Union Pacific Corp. officials said Thursday that the railroad lost about $15 million in revenue in the first quarter and will lose $15 million more for each month the strike continues.

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On the Net:

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

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