4 June, 2008UAW members vote to ratify a new four-year agreement.
USA: United Auto Workers (UAW) members at five American Axle Manufacturing locations in Michigan and New York voted on May 22 to ratify a new four-year labour agreement by a 78 per cent margin, ending a three-month strike. The agreement covers 3,650 workers.
According to press reports, the agreement involves buyouts with reduced wages, a freeze of the pension plan and the closure of three plants, resulting in about US$300 million in annual structural cost reductions.
"Our members have had to make some tough decisions for themselves and their families," said UAW President Ron Gettlefinger.
The agreement was reached at a time of falling sales of pickup trucks and SUVs. Nevertheless, American Axle's CEO Richard Dauch received US$10.2 million last year in compensation.
American Axle is a Detroit-based auto parts supplier created in 1994 when General Motors spun off five U.S. plants. Last year the parts supplier posted a US$37 million profit.