GM to pay up to $200M to help end American Axle strike Save Email Print
Posted: 8:16 AM May 9, 2008
 Last Updated: 8:16 AM May 9, 2008
23 comments
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General Motors Corp. has agreed to kick in up to 200 million dollars to help end a 10-week strike at American Axle and Manufacturing Holdings Inc.

The Detroit automaker says today in a government filing that the money would go for temporary payments to buffer reduced wages for the auto parts supplier's workers, and employee buyout and early retirement packages.

About 3,600 United Auto Workers at five American Axle factories have been on strike since February 26th in a wages and benefits dispute.

About 30 GM factories have been either fully or partially closed due to the strike.

Nearly 400 workers at AM General were temporarily laid off because of the strike. The entire H2 plant was shutdown as a result.

An American Axle spokeswoman says talks with the union are continuing.

The Associated Press has left a phone message seeking comment from the UAW.

Information from The Associated Press was used in this report
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Posted by: Todd Location: Mishawaka on May 13, 2008 at 07:48 AM
UB...I make far more then 8.00 per hour, have full benefits, and am happy with my job. Who is my union? NOBODY. Suck it up and get back to work. Get educated and work hard. You will be payed for what you are worth and not for what some has been group things everybody should be paid. The merit system has worked great for years and we do not need unions in there to inflate things up to the point where businesses want to send things out of the country. Seniority system is the biggest bunch of bull there is. You can be the laziest union worker around, but if you have worked there for 20 years, you will get the promotion or won't get laid off, even if the guy of 10 years bust his rear working hard. It's just not right.
Posted by: looking ahead on May 11, 2008 at 04:45 PM
I've actually turned down jobs because they were union, because I grew up in a union household and know just how little the union really cares about anyone but itself. It encourages lazy people by rewarding them for the work others do. It's pitiful that you think that the union is a good thing while it sends our children's and grand-children's jobs out of the country. I've seen so many good non-union companies being hurt because the unions can't tolerate the blatant evidence of the fact that unions are NOT necessary for a good job, so they selfishly picket companies that have nothing to do with them to try to force them to join unions-BECAUSE UNIONS THINK ITS ALL ABOUT THEM. Good for you if you managed to get better than you deserved, but the gravy train is running out of economical tracks. Your infantile temper tantrum may work for a while, but one of these days your grandkids are going to be asking where they should work. Just remember-we'll all know to blame you.
Posted by: Laurie Location: Niles on May 10, 2008 at 10:17 PM
So, the 3600 American Axle workers are given $14k each... How can they deal with what our area thinks of them? 36k people were laid off because of the AA strike. Who is going to help them? When their jobs are all outsourced to Mexico because of the costs of doing business in the U.S., these workers will be shunned by people in this area. Reality--we are a global economy. There is high unemployment in the area. People are losing everything they have, i.e. record foreclosures. Many people would love to have an AA job, even at reduced wages and benefits. Get real AA workers.
Posted by: Anon on May 10, 2008 at 03:56 PM
Unions are making corporation move out of the country. People are so money hungry in this country and you have other countries that will take next to nothing for the same job. Why can't you union workers just be happy that you have jobs. Why do you have to put other people out of work? Are you losing your houses to foreclosure like some people that can not find a job? These people would take anything but not you people. You want the almighty dollar and heck with anyone who gets in your way. Well thank you all for being so greedy......
Posted by: Z Location: Indiana on May 9, 2008 at 09:35 PM
Mark - Unions cannot FORCE a company to do anything. The profits were shared because that was negotiated into the contract during collective bargaining. Companies tier wages because they cannot afford to pay everyone the rates unions try to demand. Unions expect the person sweeping the floor to make the same $20 an hour that is paid to operator of a CNC machine which obviously takes a lot more skill. Unions also drive costs up by not allowing flexibility in the work force. If the CNC operator I mentioned above has the audacity to sweep up his own area, the person who's job it is to sweep the floor files a grievance. The union will claim this is creating or protecting jobs but it is doing the exact opposite. If a company cannot turn a profit they will move to where they can or close down all together. It is not personal, it is basic economics. Unions "scare" companies because they can be disruptive and costly, not because of their own (the union) perceived power.
Posted by: Tom Location: Leesburg on May 9, 2008 at 09:20 PM
All these union people are feeling good now because they think they won something. Really all you've done is momentarily postpone the inevitable. We live in a global economy now and as long as you union people keep demanding the high wages your only making foreign labor look more appealing to corporations. When workers in other countries are willing to accept a wage per day that is less than what you will accept per hour you have to know your time is limited. The problem is that when these manufacturing jobs leave this country it doesn't just hurt you union people it hurts the entire labor force, including future generations. So don't kid yourself into thinking your doing something good for us non-union workers because you are definately not. People wonder why the U.S. keeps losing so many manufacturing jobs, just look at the unions and there's your answer.
Posted by: UB Location: SB on May 9, 2008 at 05:00 PM
yes, yes yes kick the unions out! Lets all work for 8.00 an hour for the next 10 years as well. By then it wont matter because CHINA will own the rest of our country! I love rice! I love Ramon noddles ... yes I love being a LOwer MIddle Class republican who is starving @ the vine. The vine is this great country of ours. Why do we keep selling it bit by bit to the highest bidder to simply satisfy our insatiable desire for more , more ,bigger ,better ,faster Quoting an old CHINESE proverb ... no pun intended ... "Happiness is wanting what you have ... NOT .... having what you want. Is your glass half full ? or is it half empty? CHINA IS CURRENTLY ADDING A BBBBILLION dollars a day to there surplus .. surplus .. do you know what that is ? DOUBTFUL we Americans are DEBT specialists our country and its people as a whole, spend more save less consume consume consume!! I am so afraid that, short of a revolution there is no hope! solidarity forever baby, It is our hope and courage makes us stro
Posted by: Walter Ruther Location: Black Lake on May 9, 2008 at 04:25 PM
Taco Bell is hiring!Walmart.Kmart,petsmart,Bestbuy,circuitcity,lowes,menards,homedepot are hiring as well! ..... Pick 3 any 3 because that is how many jobs these {in my opinion}under-informed bloggers from the michiana area will need to pay these prices we are feeling today. Why is it that lower middle class americans who are debt to their eyeballs,who cant pay cash for anything!EEAK out a miserable existance,gripe whine and complain if someone else makes a decent living automatically think they are republicans?? Hey folks " you cannot legislate morality"and lets face it Jesus was a liberal! Thats right! The conservative said "go home the wine is gone" or "no we will get ox from the ditch tomorrow" ... well the right thing isnot always the most popular. It is time though to give the ball to the other team, and see where they will move us to? Where we are going now and for the last 8 years is NOWHERE FAST. Costs are up, wages are down ,good jobs are taken to other countries.. solidarity
Posted by: UNION BROTHER Location: SB on May 9, 2008 at 04:21 PM
Just as I said in a previous post earlier. It seems as GM now needs transmissions. All of a sudden, they are going to help American Axle. Sonsa%!(&$#@. Good for you Union folk! I hope you get a liveable contract.
Posted by: Linda Cripe Location: Bristol, IN on May 9, 2008 at 04:17 PM
My husband lost his job due to the American axle strike... Who's going to pay the company he worked for to get his job back? GM doesn't care about the outsourced products. Isn't GM setting it up for the rest of the unions to strike? The unions now know that GM will bail them out also? What kind of lessons are being taught here?
Posted by: Anonymous on May 9, 2008 at 03:47 PM
kick out the union !
Posted by: Mark Location: Mjchjana on May 9, 2008 at 03:40 PM
It is obvious to me which bloggers are union and which ones would like to be!#1 axle workers are not making 30. per hour. Unions would love for all members to make equal pay! unfortunately greedy companies choose to divide the memberships by tiering the wages.These tiers in wages and benefits serve as a tool to keep members devided.when members unite we scare companies! we also scare those under-represented folks who seem just a little bitter. I am 46 yrs. old and began working locally represented the auto workers @ age 19. Now I am just a dumb factory worker, but I think this equals 27 years?My children are educated! their teeth are straight!My wife and I are still together{she is a stay at home mom}Our home is paid for!We actually have a 401k and some IRAs. My company made good money last year and the union contract FORCED them to share it with me!PLEASE,please do not be so critical of something you obviously know very little about.What is my lifetime commitment worth? solidarity
Posted by: Terry Location: Michigan on May 9, 2008 at 01:46 PM
It is very obvious here, there are alot of you that seem to be upset that the workers at American Axle are standing up for themselves. Maybe you should learn from them instead of bashing them. They have stood tall in the face of great adversity. I doubt any of you bashing them would do the same. If you don't stand for something you will fall for anything.
Posted by: jake Location: elkhart on May 9, 2008 at 12:34 PM
Now the axle workers cant even smoke in the bars while spending their unemployment checks!! how about go back to work the rest of us are...
Posted by: angry Location: middlebury on May 9, 2008 at 12:23 PM
I guess 30 bucks an hour to sweep the floor is too much... HELLO! America needs to wake up and be competitive here... Unions are a thing of the past, and need to be abolished. How about you guys feel good you have a job, 15 bucks an hour is better than unemployment. GM needs to take that 200 million and start their own axle plant pay them decent wages, not 30 bucks an hour and the people that work there wont want the union in, in fear that they will lose their jobs and get stuck in a picket line. Unions are the reason when you show up for work and the doors are locked and no one is there, they just moved to Mexico.
Posted by: Z Location: Indiana on May 9, 2008 at 12:19 PM
Ray - If so many people want to be represented by a union why has union membership been on a steady decline for the last 20 years? Also, care to share your source for the information yous stated regarding Toyota? Unlike the big 3 that are represented by the UAW, Toyota is currently investing hundreds of millions of dollars here in the United States building facilities that will employ thousands of Americans. Toyota is in very good shape financially so I have a hard time believing they are cutting any wages. Their benefit costs may have risen, but show me someone that works for a living who is not paying more for benefits.
Posted by: Z Location: Indiana on May 9, 2008 at 11:09 AM
$200 Million for this...and a few hundred million more to eventually desource them and start buying axles from a supplier in Mexico so they don't have to deal with this again.
Posted by: Ray Location: Syracuse on May 9, 2008 at 10:57 AM
Here we go again,some of you complaining what the UAW is doing to secure a desent living for their members and those of you that are not members. Toyota is in the process of doing the samething to their employes, cutting their wages an benefits. There just waiting to see what is happing with the rest of the big three and suppliers. Also if it weren't for these unions you, I and alot people would not be making the wages we do an being able to collect unemployment today. As far as having a job with them alot of you had that chance. You see thats the whole problem here, you all would like to work there with the wages and benefits and since you can't you complain about them,because of what they do to secure a better life for their members which you would like to be a part of. You and the rest of the commuity should stand together and support these people. Its just a matter of time when the company you work for cuts your wages and makes you pay more for your medical. Their trying to stop it
Posted by: Mike Location: West Michigan on May 9, 2008 at 10:53 AM
I wonder what you would do if your employer cut your wages by 60% overnight. I guess you would just take it. The only people I see crying here is you!
Posted by: Anonymous on May 9, 2008 at 09:25 AM
SHUT UP AND GO BACK TO WORK! You lazy union workers have nothing but unemployment coming to you. I'd love to have your job and current benefits!
Posted by: Tôm Location: South Bend on May 9, 2008 at 09:10 AM
Interesting to see General Motors "helping out".
Posted by: anonymous Location: mishawaka on May 9, 2008 at 09:07 AM
What a crock! GM is already going to be lucky to remain solvent without having to help bail out the UAW. No wonder american auto makers can't compete. They are basically being blackmailed by the UAW. I don't want to hear their whining once they are all unemployed.
Posted by: Ken Location: Warsaw on May 9, 2008 at 08:46 AM
It's nice to see that GM is willing to give $200 million to end a strike. I do mean that in the most sarcastic manner possible. Too bad they don't realize there are thousands of people who would love to have the jobs that are vacant due to complaints on pay and benefits. What benefits do the people who are actually out of work get? And other people are on strike demanding more. Let's be happy with what we have during this time of crisis. I believe a wise man once said that greed and jealousy may be the root of all evil.
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