American Axle chief: Jobs can be moved out of U.S.

[Bozita]

Source: Detroit Free Press

American Axle chief: Jobs can be moved out of U.S.
BY TOM WALSH • FREE PRESS BUSINESS COLUMNIST • MARCH 26, 2008

Dick Dauch, chairman and chief executive officer of American Axle & Manufacturing, lashed out today at UAW leaders for striking his company and refusing even to discuss what Dauch said was already a pattern of lower wage-and-benefit deals already reached with Dana Corp. and other direct AAM competitors.

“We are fighting for the absolute survival of AAM in America,” Dauch said in an interview one month after a walkout by 3,600 hourly workers at AAM plants in Michigan and New York.

“We have the flexibility to source all of our business to other locations around the world, and we have the right to do so,” Dauch said, in a not-so-veiled threat. AAM has plants in Mexico, South America, Europe and Asia.

“We will not be forced into bankruptcy in order to reach a market-competitive cost structure in the United States. If we cannot compete for new contracts in the U.S., there will be no work in the original plants,” Dauch said, referring to operations in Detroit, Three Rivers and in the New York towns of Tonawanda and Cheektowaga.

Read more: http://www.freep.com/apps/pbcs.dll/article?AID=/20080326/COL06/80326086

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While reading this article, thoughts of "A Christmas Carol" came to mind.

Not the happy ending. The characters.

[neuvocat]

1. The country has enough Wal-Marts.

We don't need anymore businesses exploiting workers. That's the biggest hit to the economy and a lot of business "leaders" don't want to understand that.

[sasquatch]

2. Part of the problem is we still have this "Third party beneficiary" health insurance industry

That's a major problem in our economy and it won't stop until we have a forced intervention and tell the insurance industry to seek other sources of revenue.

[Mind_your_head]

3. It's a very tough world for employers AND employees both

in todays america.

It sounds like this employer doesn't REALLY want to outsource, but he's threatening b/c his back is against a wall (and it is). He's asking his workers to 'help him out here'....to keep their jobs, for him to keep his plant.....

This small/mid-size manufacturer in this country is getting shafted just as much as the worker is.....and the small/mid-size manufacturer (not one of the BIG CORPS) KNOWS how valuable they are to a community.

I hope you understand what I'm trying to say.......Someone (a company) like this is DEFINITELY NOT the 'bad guy'. Don't be naive, play accordingly.

[dantyrant]

4. People are so used to being screwed...

that they no longer know who the 'bad guys' are. Can you blame them?

[Winterblues]

16. Then we need to inform them. this is all due to republican ideology

Without Single Payer Health Care American business can not compete. Every country that our jobs get outsourced to has National Health Care so business does not have to provide it. They can there for come in way under any American business. Republicans are the ones that insist this stay the way it is. It is unfair to American business and especially American workers. It is very simple, the main purpose of government is to maintain the Health and Welfare of the nation. We are the ONLY westernized nation that does not do this basic thing..

[BigDaddy44]

21. Thats not exactly true

Someone still pays for the healthcare. Under single payer, business doesn't provide healthcare directly, but still pays for it through higher corporate taxes.

[Hannah Bell]

22. They already outsource. They produce all over the world.

GM is 76% of their business. Where GM is (everywhere), they are too. They're the house brand. GM used to run the operations in-house. Axle is just a phony out-sourcing operation. They're not a "small/mid-size business," not a mom & pop operation.

Who are their "competitors"?

All the car companies are tied together through joint ventures, interlocking directorates, capital lending, interlocking personnel, etc. etc. etc.

The same tune for 35 years - oh, YOU & what's it brought american workers? Fewer decent jobs & flatlining wages.

No more concessions.

[Ian David]

5. If they outsource all their jobs, why should we care if they survive? n/t

[Oerdin]

6. That's reality.

There is no way any company can pay 500%-700% more then what their competitors pay. That's just the reality and the only way to stop it is to tariff the hell out of imports. The problem is tariffs help 10% of the population and hurt 90% while free trade lowers prices for everyone. I'm sure I'll get flamed but reality is reality.

[bean fidhleir]

7. Not flamed, just contradicted

Look at the history of protective tariffs. Especially the recent history in Korea, Japan, and other "Asian tiger" economies. Protective tariffs are very good for the whole economy for the same reason that buying locally is. Prices might be higher but so are wages and, most importantly, the money stays there, circulating over and over again. The whole economy is richer and more vibrant because the money doesn't go off into some wealthy multinational pockets.

[brentspeak]

12. Can you give some examples of what these "lower prices" are?

[madmom]

8. From what I hear this is total BULLSHIT... my SO works for a company that

gets parts from AA, word has it they are already moving machinery out, and just before the contract was up and the strike started the CEO's including Dauch got a hefty "bonus", so then why do the employees have to take cuts?

[PassingFair]

9. "Cuts" is putting it mildly....

AAM Employees are looking at a 2/3 reduction of pay
and benefits.

If you are paying on a 1,000/month mortgage, you
CANNOT survive on $12.00/hour. You are SCREWED.

They are striking because if they accept this,
they will bleed to death in 6 months.
They prefer a quick death, and, in my opinion,
they are doing the only logical thing.

Making a stand.

For unions AND the middle class.

[madmom]

10. I think you misunderstand my "bullshit" remark I am not against the strike,

totally for it.
In Shreveport they are already getting their axles from Mexico, this is by design, they tooled up pretty quick, this kind of operation can't be done in just a few weeks, they had this planned from the beginning.They had this planned so they could beat them out of their contract, this is called bushco free trade.

[PassingFair]

11. Wasn't "snarking" you...

:)

I am just upset about the state of manufacturing
in this country...

I'm in Michigan!

[Omaha Steve]

15. The boss that is so worried about going under got 10 million total last year

It seems he could take a pay cut too with everybody on the production line.

[BearSquirrel2]

19. Smaller house ...

I'm sorry to say this, but in this "modern" economy $12/hr plus benefits is an OK deal. Moving to a smaller house is a better option than moving into a cardboard house.

The unions are living in la-la land. Our current trade laws suck but ... that's the way it is.

[PassingFair]

20. But you CAN'T SELL the bigger one!

...that's the way it is.

[BearSquirrel2]

23. That all depends ...

That all depends on price.

Sorry to bring bad news. We have to stop all this NAFTA and WTO nonsense. Until then, I would suggest that union members stop complaining, put there heads down and work harder.

[Lance_Boyle]

13. something about a dick douche seems very

unpleasant.

[Lydia Leftcoast]

14. When a CEO says the company "can't make it" by paying American wages,

I always ask myself whether they REALLY mean that the CEO is going to have to sell one of his Swiss ski lodges to make ends meet.

Most of these top executives could live at least a middle class lifestyle for years on what they normally make in one year, as could their major shareholders.

They're screwing the American worker out of pure greed. They're imposing conditions on the rank-and-file that they themselves would never accept.

The union's response should be, "Okay, Sir, we'll take a 2/3 pay cut if you do. You can absorb it a lot better than we can."

[knitter4democracy]

17. I know someone who used to work there.

Quality control was crap. He kept trying to complain that unsafe stuff was getting sent on to the car companies they supplied, but he was told to be quiet. He left his job and is working for a Japanese corporation here in town instead and is much happier.

We may need their jobs, but we also need to make sure that they deserve all those tax breaks we give them.

[BearSquirrel2]

18. This is a new age ...

Sorry but in the age of globalization all unions are accomplishing is flaunting what is now overpaid, often underskilled wages in front of everyone else. The laws suck, but UAW is MAD to be striking in these conditions. This is why the Toyota workers constantly vote AGAINST joining the UAW.

When you see guys pulling $75/hr in wages and benefits out of GM while skilled workers toil at much less, you can where things are going.

Like I said, the laws suck. But these union leaders are divorced from reality. They'd better just keep there current contracts along with their jobs. They sound like a bunch of whining spoiled babies.