GM Offers $200m Bribes to End American Axle Strike

Frank Williams
by Frank Williams
gm offers 200m bribes to end american axle strike
It should come as a shock to no one that the AP is reporting (via Yahoo! News) that GM has agreed to kick-in up to $200m to end the strike at American Axle. In "a government filing" today, GM said the money would go for [s]bribes[/s] payments to make up for wage reductions for the employees, buyouts and early retirement packages. AA spokeswoman Renee Rogers said there's been no agreement between the UAW and AA. But the supplier is "hopeful that GM's financial assistance to help fund the buyouts, retirement incentives and buy downs… will facilitate an expedited resolution to the international UAW strike." In a separate filing, AA said GM's aid depends on how quickly the strike is resolved. Meanwhile, GM indicated they have enough money to "meet its needs," even though the strike has cut its liquidity by $2.1b. They didn't indicate from which bodily orifice they plan to pull the $200m.
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  • Samir Samir on May 08, 2008

    The other shoe has dropped. Does it set a precedent for other suppliers, though?

  • AJ AJ on May 09, 2008

    Another reason to buy a non-union built Honda next time.

  • Menno Menno on May 09, 2008

    Wasn't American Axle a spin-off of GM? So, "selling" an unprofitable set of businesses, or "spinning them off" has done exactly what for GM? Delphi? Check. (As in, GM sent several larges ones). American Axle? Check again!

  • Truthbetold37 Truthbetold37 on May 09, 2008

    Where is the money coming from? Why are they doing this???? AAM can supply parts out of Mexico for the time being. There is no need to give them money. Unless GM is afraid other plants will go on strike (Orion - Malibu, Lansing Grand River - CTS, Lordstown - Cobalt).