American Axle says talks stalled over health care, benefits

By DEE-ANN DURBIN, AP Auto Writer

Tools

By Beth Boehne

Story Created: May 13, 2008 at 5:41 PM EST

Story Updated: May 13, 2008 at 5:41 PM EST

DETROIT (AP) — American Axle and Manufacturing Holdings Inc. said Tuesday that negotiations to reach a new labor contract that would end a 78-day strike by the United Auto Workers union have stalled because of disagreements over health care benefits and unemployment pay.

American Axle said the talks have been stalled since late Sunday.

"There are very few remaining issues separating the parties from reaching agreement," the company said in a statement released Thursday afternoon.

American Axle said the UAW wants the company to continue providing a health care plan that would cost double the rate of plans at competing UAW-represented suppliers. American Axle also says the UAW wants the company to pay wages and benefits for workers who are laid off, a benefit that isn't offered at competing suppliers.

"Paying associates who are not working is an uncompetitive burden that American Axle cannot bear if it is to compete successfully in the U.S. market and earn new or replacement business," the company said.

A phone message seeking comment was left for UAW spokesman Roger Kerson.

The strike by 3,650 workers at five plants in Michigan and New York has crippled General Motors Corp., which is American Axle's biggest customer. GM says the strike has affected 34 plants and decreased production by 230,000 vehicles through April. The strike cost GM $800 million in the first quarter.

There had been hope for a settlement after GM's surprise announcement Thursday that it would throw in $200 million to help end the walkout. But that offer was contingent on a quick resolution of the talks.

But on Monday morning, UAW President Ron Gettelfinger was not optimistic that the strike would come to an end soon.

"I would not predict how long this thing's going to go because it appears to me at this juncture it may be a while," he said on "The Paul W. Smith Show" on WJR-AM.

American Axle shares rose 14 cents to close at $21.52 Tuesday. GM shares fell 56 cents to close at $20.20.

___

On the Net:

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

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

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