American Axle expects to cut 2,000 US factory jobs (more than half of its U.S. hourly work force)

[Omaha Steve]

Source: AP

DETROIT (AP) — American Axle and Manufacturing Holdings Inc. said Wednesday it will cut more than half of its U.S. hourly work force, or 2,000 jobs, through early retirement and buyout offers, plant closures and layoffs.

The moves were made possible by a new contract ratified last week by the United Auto Workers union that came after a nearly three-month strike against the auto parts maker.

The company said its total hourly labor costs would drop to between $30 and $45 from $73.48 under the old contract. The cost will vary by factory because they have different wage and benefit costs.

About 3,650 UAW workers went on strike against the company on Feb. 26, but ratified a contract with deep concessions on Thursday. The bitter strike crippled General Motors Corp.'s production of pickup trucks and big sport utility vehicles, and it took a contribution of $215 million from the automaker to end a stalemate between the union and American Axle.


Read more: http://money.excite.com/jsp/nw/nwdt_rt_top.jsp?news_id=ap-d90uqufo0&

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On the Net:

American Axle and Manufacturing Holdings Inc.: http://www.aam.com

[Cal Carpenter]

1. So sad

the state of the labor movement in this nation is sad.

:(

[Kolesar]

2. AA was a spin off from GM in the 1990s ... eom

[AngryOldDem]

3. This is not good.

But, given the recent strike, we could have seen this coming.

I live in a GM town that was heavily affected by this strike. A truck plant was virtually closed down and is just now reopening with its first-shift crew. Second-shift starts back up next week. The businesses around this plant (which are located in an area that has always been economically depressed) have been absolutely estatic that the Axle strike is over and the GM plant is returning to normal operations.

Enjoy it while it lasts, I suppose.

[Zachstar]

4. I hate to say it but Unions need to start calming down.

Because of the way things are... Strikes and demands are only going to lead to more loss for everyone.

The US automakers are already getting closer to the edge. When they go UAW is going to be about as useful as a group dedicated to demanding things to the sun.

[MichiganVote]

5. Unions don't make or sell products. IMO, its business that needs to get a move on.

[Zachstar]

6. To what?

[MichiganVote]

7. To follow the business mission statement- Make Money.

[Psephos]

11. I don't see how you can make money when your plants are shut down n/t

[Omaha Steve]

10. The first strikes in the 1800's were to get a work day down to 12 hours

American Axle wanted to cut wages in 1/2. Two of their factories had already gone to Mexico. The boss got 5 million. Another former GM company DELPHI, had already sent many jobs to Mexico too. Unions got health care, pensions, and a middle class. People got comfortable. Right to work started to have an effect in the 60's. Reagan smacked labor with PATCO. Downward trend. Numbers were up nationally last year while the rust belt continued to see numbers dwindle. Apathetic members need to wake up, not calm down. It is not demands. It is survival.

BTW, US steel sales are up because of the cost of shipping steel from China as oil goes up. China steel sales are down 20%.

[nwliberalkiwi]

8. Cut for Employees

Useing the figures in the article the employees are giving up 49%. Are any of you on this board willing to give up 49% in compensation. Just watch the executives will be getting big bonuses---I wonder if they took a 49% cut in compensation?

[OhioChick]

9. K&R

:kick: