American Axle rejects UAW offer

[Omaha Steve]

Source: Business First

A proposal from the United Auto Workers seeking to end a seven-week strike against American Axle & Manufacturing Holdings Inc. was turned down by the company.

American Axle said in an update that the offer was "not market cost competitive" though "it was a slight improvement from the UAW's previous bargaining positions."

The offer was made April 9 as representatives from both sides returned to the table.

Detroit-based American Axle said "the all-in labor cost proposed by the UAW is still approximately 200 percent of the market rate of AAM's competitors in the United States automotive supply industry."


Read more: http://www.bizjournals.com/buffalo/stories/2008/04/07/daily44.html

[Deja Q]

1. I know other unions that urge employees to take offers.

Everyone is having some difficulties right now, and usually when people have to strike, there is a pattern in that when they do re-negotiate, the workers tend to get something far worse. :(

Not all corporations have realized offshoring has more risks than the perceived benefit of upfront cost.

[madmom]

2. SO works for corp that gets parts from AA, he heard they were told to

"cut pay by 50% and start paying more on their insurance or they would be locked out and replaced"

He heard this when the strike first started.

[BearSquirrel2]

3. There jobs are doomed to be offshored ...

It really sucks. The rules of global trade were set up to bust all unions.

The deck is stacked against these guys. The fight is in Washington. These guys would do well to take the offer and SURVIVE in hopes that the next administration/congress will get smart and change the rules back to something sane.