No End in Sight for UAW/American Axle Strike
The possibility of a quick resolution to the United Auto Workers (UAW) strike against American Axle (AA) is fading fast. It's been a week since the full bargaining teams met; labor specialist Gary Chaison describes the non-meetings as "an awful sign." The AP [via Forbes ] reports the UAW sent an email to members of other organized companies stating "we expect this to be long and drawn-out strike," asking them to join AA workers on the picket line. So far GM has had to close all or part of 28 plants. Thousands of workers have been laid off at other suppliers. The UAW strike is also beginning to affect the Canadian Auto Workers (CAW). Several GM plants in Canada have cut back production, creating what CAW president Buzz Hargrove terms "a tough situation." So far, the strike hasn't seemed to affect GM's sales. The General started March with a 129-day supply of Silverados, a 123-day supply of Tahoes and a 141-day supply of Sierras. These models aren't exactly setting any sales records right now. You can bet that once The General starts feeling the pressure on the bottom line they'll be forced to dip into their pocket and bankroll a union buyout deal similar to their own. But what if AA balks or the suppliers can't make it 'til then? Dangerous times.