American Axle (AA) and the United Auto Workers (UAW) are still talking– but only over the phone. Formal (as in FTF) negotiations ended on Monday. According to American Axle, that's when "the UAW sent its negotiators home." The UAW said they left the table because discussions were "still pretty much a one-way street [and] the company really hadn't changed their position at all." Talks are supposed to resume today, but a resolution is not expected. The Indianapolis Business Journal quotes labor law professor David Gregory, who reckons both the UAW and AA are in it for the long haul. "This has got the makings of a protracted strike. It's already a serious strike, but this could go into April." If that happens, GM will be in a world of hurt, as will a lot more of their other suppliers. It seems The General is using the strike to reduce bloated truck inventories, but the plan could backfire if either the UAW or AA refuse an eventual GM bailout. Watch this space.
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What incentive does AA have to meet any of the UAW demands? The automakers can have a hit product and basically charge whatever they want for it, but suppliers costs and profit margins are essentially fixed. It is impossible for a AA to compete with their current UAW wage structure. If they don’t get the relief they are looking for they’ll go out of business anyway, so they may as well let this take them to CH11 and try their chances with the judge.
What have the workers got to lose?Worse case scenerio,they close the doors.Long before that happens the General is gonn’a step in with thier checkbook.The UAW will win this battle but not the war.
GM is starting to feel the heat,soon they will cough up 5 or 6 bucks an hour and short term job security in order to get the plants up and running.Once the dust settles AA and GM will come up with a new plan.Maybe send the work to Mexico or bring it back in house.Whatever the results, its another nail in the coffin of the well paid
factory worker.
I know that some will cheer this on,you know those overpaid union f—s are finally getting getting what they deserve.
So the working people will now take a step out of the middle class and down to the working class.
14$ an hour eh? Barely a living but you can survive.Of course your not gonn’a buy anything but bare esentials.At 14 bucks an hour a guy isn,t paying a lot of taxes or educating his kids.
Keep in mind folks the corporate world ain’t gonn’a stop at the blue collars.To all of the boys and girls sitting in thier cubicles and barely clinging to the middle class.Your next!
mikey, how about a post not filled with the same tired protectionist rhetoric? Just because you won’t be “well paid” as a low-skilled worker doesn’t mean that our way of life is going to be destroyed. It just means you’ll have to…*gasp*…work harder for it. Gimme a break.
Your right CarShark your life wil not be destroyed,but it will be impacted.
I don’t think getting a bailout is AA’s primary plan….
http://www.crainsdetroit.com/apps/pbcs.dll/article?AID=/20080312/REG/563593074/1069
They are already building axles for GM’s Mexican operations.
Union brothers and sisters – look around you. We’ve lost this one and need to cut our losses. My broker called and said that Axle is already planning to close the US plants and move all the work. Our leadership has sold us up a river and the only losers will be use AAM strikers. We’ll soon be out of money, out of a job, and out of luck because we are unwilling to bend or work through the issues. I wish the outcome could be rosier, but trust me when I say Dick Dauch has the money and stamina to outlast us and don’t expect GM to bail us or them out. This is actually a good thing for GM to trim their inventory. Take my advice and start looking for new employment now before the rest of our 3500 brothers and sisters have to also. Those who act the quickest will reap the best opportunities.