On May 19, voting began on a contract between the United Auto Workers and American Axle & Holdings, Inc. that would end a three-month long strike. Passage or failure leaves workers with two options: either wage cuts of over one-third or potential unemployment.
The strike began on Feb. 26 at five American Axle plants in New York and Michigan and has shut down production at 30 General Motors plants which rely on American Axle auto parts.
American Axle initially intended to lay off 2,000 of 3,650 workers by January 2009. It has since begun negotiating buyouts of $140,000. Chief Executive Dick Daunch has threatened to move production overseas if the company is unable to win the wage cuts it wants.
Even if the contract is ratified, GM’s plans to cut back production of SUVs will result in layoffs. “It’s not an agreement anybody is touting as, ‘This is great’… It is not a good agreement, ” said UAW president Ron Gettelfinger.
