http://www.reuters.com/article/rbssConsumerGoodsAndRetailNews/idUSN2525688120080225(For those who don't know, American Axle is a major supplier of axles for the Big 3, mainly GM. In fact, they were GM until they were jettisoned off.)
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DETROIT, Feb 25 (Reuters) - American Axle & Manufacturing Holdings Inc (AXL.N: Quote, Profile, Research) and the United Auto Workers face a final day of contract talks on Monday before the midnight expiration of the union's current contract with the parts maker, a major supplier to General Motors Corp (GM.N: Quote, Profile, Research).
Negotiators for the auto supplier and the union met on Saturday and Sunday. Both sides declined to comment on the talks, aimed at reaching a labor deal for more than 3,000 UAW-represented workers in Michigan and New York.
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Lehman Brothers analyst Brian Johnson said he expected American Axle to emerge with a contract that would save $200 million annually by slashing wage rates by almost a third.
Johnson said unless the UAW agreed to sweeping wage reductions, American Axle could threaten to close its Detroit plant and ship the work on a next-generation axle for GM trucks and SUVs to a factory in Mexico. "We expect significant concessions," he said in note for clients.
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Further proof that Detroit is dying. I talked to my father (employee) tonight. It's not looking so good. They want to cut wages from $65/hour (this is a figure that includes ALL benefits along with hourly rate) to $27/hour. That works out to be around $14 an hour for long time employees. Employees with mortgages to make and mouths to feed. It is disgusting. It is sickening. That is not a living wage in this town anymore.
And, if you could please, spare a thought for my dad. Too young for SS, too old to find another job.