No End in Sight for UAW/American Axle Strike

Frank Williams
by Frank Williams

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.

Frank Williams
Frank Williams

More by Frank Williams

Join the conversation
4 of 8 comments
  • Guyincognito Guyincognito on Mar 18, 2008

    I wonder if the UAW has done the cost analysis of the hit to the value of their VEBA fund caused by the sinking of GM stock value due to this strike vs the possible increase (or lack of decrease) in membership dues that can be gained by this strike.

  • GS650G GS650G on Mar 18, 2008

    Why would anyone buy a vehicle built with parts from unhappy workers?

  • Jolo Jolo on Mar 18, 2008

    GS650G asks: Why would anyone buy a vehicle built with parts from unhappy workers? Great question that I always ask people when they think about buying any of the Dom2.8 vehicles. Most people will think long and hard about it and most switch to another brand.

  • Landcrusher Landcrusher on Mar 18, 2008

    Does GM have to pay UAW workers not to work while their brothers are on strike at AA? That can't be a legal situation.