American Axle deal faces last, largest UAW hurdle

By David Bailey

DETROIT, May 21 (Reuters) - A proposed contract that would slash union wages at American Axle & Manufacturing Holdings Inc (AXL.N: Quote, Profile, Research) faces a crucial vote on Thursday at the company's flagship Detroit plant after indications that smaller U.S. facilities had endorsed the concessionary pact.

The ratification would end a three-month strike at American Axle, one of the longest in the 73-year history of the United Auto Workers, that forced General Motors Corp (GM.N: Quote, Profile, Research) to lay off thousands of workers due to parts shortages from the supplier.

About 3,650 UAW-represented workers have been on strike at American Axle plants in Michigan and New York since Feb. 26, including about 1,900 at the Detroit gear and axle plant where UAW Local 235 has set a vote for Thursday. Voting has been completed at the other facilities.

An end to the strike would be welcome for GM, which had at least partly shut down about 30 North American plants and provided about $218 million to clinch a settlement. GM said on Wednesday the impact was down to 20 plants that employ more than 25,000 workers, though the automaker does not detail how many of the workers at each plant were laid off.

The UAW and American Axle reached agreement last Friday on a four-year contract that includes plant closings and massive wage cuts across the board. Worker buyouts, retirements and cash buydowns were included to soften the blow.

In the end, American Axle will look to cut its hourly work force by about 2,000 through layoffs or buyouts, according to projections the company shared with the union. More than 900 of those cuts would come from the Detroit gear and axle plant.

UAW leaders detailed the contract to hundreds of UAW Local 235 members at a raucous meeting on Sunday in Detroit where UAW President Ron Gettelfinger said negotiators were not proud of the deal, but it was the best that could be had under the circumstances.