American Axle Negotiations Break Down. Again.
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.