American Axle On Strike

american axle on strike

In spite of the way the United Auto Workers (UAW) r[s]olled over and played dead[/s] compromised with The Big 2.8 during last year's contract talks, it isn't all sunshine and rainbows between labor and management in the auto industry. CNN Money reports that this morning, negotiations between the UAW and American Axle broke down over "major issues." American Axle produces parts for GM's full-size pickups and SUVs, so there hasn't been an overwhelming demand for their product over the past few years. Hence the parts maker's claim that their $70/hour labor costs are unsustainable. American Axle wants to cut their UAW wages to $27 to $35/hour– bringing them in line with other axle producers. Meanwhile, GM's plant in Oshawa, Ontario has about a three-day supply of axles on hand and American Axle has about a two-week supply stockpiled. So the strike won't have an immediate impact on GM's plants. However, as we've seen before, if they don't resolve the problem at this supplier STAT, it'll have a ripple effect at the truck plant that will resonate back down the supply pipelines to other suppliers.

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