American Axle Takes $27m Loss, Blames Strike
American Axle (AA) posted a $27m first quarter loss today. AA CEO Dick Dauch told the Detroit Free Press "AAM's first-quarter 2008 results were severely impacted by the strike called by the International UAW at AA's original U.S. locations." The loss is quite the comedown from last year's first quarter profit of $15.7m. Robert W. Baird & Co equity analysts David Leiker said the impact of the strike was about 40 percent larger than he was expecting., "We continue to recommend investors avoid the stock due to questions regarding the company's long-term growth opportunities." As if to illustrate Leiker's point, hundreds of strikers picketed AA headquarters in Detroit, after negotiations broke down late last week. AA had offered a wage and benefit package, claiming it's "substantially higher than $30 an hour and is higher than what its competitors pay UAW members." The UAW (perhaps waiting for AA to post its losses) rejected the offer. The strike will officially enter its third month tomorrow with 3,650 AA employees on strike and some 30 GM plants shut down or in limited production.
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If the owner of American Axle was to "sell" the company to a new owner(s); would the new owner be able to get rid of the union?
DCX sold crysler to cerberus and the uaw's still there. Does that answer your question?
I don't think that the general public realizes that when a corporation, such as American Axle says that employee's make $70 per hour that this includes everything from vacation time,sick days,health insurance,life insurance,any type of bonus incentive,etc. Wake up people,if they say they offered $30 per hour then it is actually about $14 per hour. And let me ask you this, if your company asked you to live on only half of what you now make, could you do it? I think the answer would be no! Your bills and finances are set up according to the pay you now make. So please let's not buy in to this lie that the corporations want us to believe. I am proud of these people for standing their ground.
I have a few more comments to add. The people that American Axle are claiming now make $70 per hour actually make $28 per hour and have been there for years. Why do others begrudge what others are making. I only make $14 per hour, but have no problem with these people making what they make. The problem with our country is that we do not stick together nor stand our ground. We need unions. Maybe if you had a strong union you would be making this too. We also need a president who will quit sending American jobs to other countries. I have lost 2 jobs already for this exact reason. And speaking of sending jobs to other countries, this is why so many Americans are ending up with inferior products that are making them sick or killing them. WAKE UP AMERICA!