Vol. 72/No. 24      June 16, 2008

The two main issues were seniority rights and combination and outsourcing of maintenance department jobs.

GM wanted more control over departmental and shift transfers that are regulated by seniority. The workers saw that as an attempt to eliminate seniority rights that give them more control over their work conditions. GM also wanted to combine some maintenance jobs and require production-line workers to do some maintenance work in their areas.

During the strike the union organized two rallies of active UAW members and retirees from locals in the area and other unions.

The agreement allows GM to outsource parts supply through a separate warehouse. About half the workers—some 120—would be represented by the union. They will receive $16 an hour. All workers in the plant will keep the $1,250 bonus for the launch of the new Malibu, GM’s best-selling car.

—Alvino Carrillo
Retired member, UAW Local 31

American Axle workers
end 12-week strike
A 12-week strike by workers at American Axle and Manufacturing ended May 22 when members of the United Auto Workers (UAW) accepted a new contract containing steep wage cuts, stricter attendance rules, and a reduction in overtime pay. The UAW reported that the contract was approved with 78 percent in favor.

Under the agreement, pay for about 3,650 workers at auto parts plants in Michigan and New York will be cut an average of $10 an hour. Workers who had been earning up to $28 an hour will now make $18.50, and in some cases as low as $10 an hour.

Overtime pay, which had started after 8 hours of work in one day, will begin after 40 hours in a week.

Forge operations will close in Detroit and Tonawanda, New York. Workers can choose to take a buyout of up to $140,000; some will also be eligible for a $55,000 early retirement payment.

General Motors buys 80 percent of the axles, drive shafts, and stabilizer bars produced at American Axle. More than 30 GM plants shut down or cut output during the job action. GM said it lost $800 million and produced 230,000 fewer vehicles due to the strike. But according the Wall Street Journal, “the strike also helped GM control its inventory” at a time of declining sales for trucks and SUVs.

Tiffany Gardner, 33, told the Detroit Free Press that although she knew the deal would pass, she decided to vote against it as her only way to protest. “At least I can say I did what I thought was best,” she said.

“I had no choice but to vote in favor of it,” Armando Hernandez, 43, told the Free Press. He said he worried that a “no” vote would hurt his chances of getting a buyout.

—Seth Galinsky  
 
 
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