American Axle Mich. plant seen approving contract
By David Bailey
THREE RIVERS, Mich (Reuters) - Union members at an American Axle & Manufacturing Holdings (AXL.N: Quote, Profile, Research) plant in southwestern Michigan are likely to approve a contract that would end a three-month strike by granting the supplier deep concessions, the local bargaining chairman said on Monday.
Workers represented by the United Auto Workers in Three Rivers, Michigan could even break ranks with the company's other remaining plants and return to work if locals in Detroit and elsewhere balk at the contract's tough terms, UAW local official David Morris said.
About 3,650 UAW-represented workers went on strike Feb. 26 at American Axle facilities in Michigan and New York. The union and company reached a tentative agreement on Friday that requires a majority vote of union members to be ratified.
Roughly 800 of those UAW workers build driveshafts and axles in Three Rivers, one of the original plants the auto supplier acquired from General Motors Corp. (GM.N: Quote, Profile, Research) in its founding 14 years ago.
"Because we were spun off from the national contract, if Three Rivers passes this vote, I expect Three Rivers to return to work," Morris, UAW Local 2093 bargaining chairman, told Reuters in an interview.
In a break from established practice, the UAW negotiated lower wage rates at the Three Rivers plant than at the other American Axle plants as a concession to convince American Axle to keep the plant open.
Morris said he would ask American Axle to abide by buyouts, retirements and cash buydowns in the broad agreement if it is rejected by other locals, but accepted by Local 2093 members. If it agreed, then his local could return to work, he said.
An agreement to end the strike at even a single American Axle facility, would be welcome news to GM, which has at least partly idled production at about 30 plants in North America because of parts shortages. Continued...
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