Recent Developments In The American Axle- UAW Conflict
American Axle & Manufacturing Holdings Inc may have started to show the signs of holding out the olive branch after nearly five weeks of impasse with their worker union, United Auto Workers (UAW). They have made a start by providing sensitive financial information to the UAW union leaders.
A five week long strike has been on, because American Axle wanted to cut worker wages and benefits, so that they can get their finances to be at par with those that UAW provides to other domestic suppliers. UAW cited the withholding of financial information in a federal unfair labour practice charge as the basis of the strike. UAW has also implied that the strike has been prolonged further because American Axle has illegally ended disability and health-care payments to injured workers, and compensation and health care for those workers that were laid off. The strike has affected American Axle’s chief customer General Motors to a very large extent, causing a complete or partial shutdown of nearly 30 of their plants.
The financial information had been regarded as important by UAW to ensure informed decisions that would possibly affect the workers’ pensions, heath-care and profit sharing packages. They are still to determine whether they have been furbished with adequate data. American Axle has in the meantime expressed a desire to “intensify negotiations” by providing additional information as required.
Although representatives from both sides have met on Tuesday, no bargaining meetings have been held for several weeks.
GM, although a non-participant in the negotiations to end this deadlock, may have inadvertently sped things up by handing over a small but important contract to American axle rivals Dana. This deal requires Dana to supply them 30,000 prop shafts for GM’s small trucks. This may indicate that GM’s patience is wearing thin.
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