American Axle could move work out of U.S.
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Thu, 27 Mar 2008 15:57:03 GMT |
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DETROIT (Reuters) - American Axle & Manufacturing Holdings will shift its manufacturing out of the United States if the auto parts supplier cannot reach a deal with striking workers to slash wages, the company's CEO said in a newspaper interview."We have the flexibility to source all of our business to other locations around the world, and we have the right to do so," Chief Executive Dick Dauch, a company co-founder, told the Detroit Free Press."We will not be forced into bankruptcy in order to reach a market-competitive cost structure in the United States. If we cannot compete for new contracts in the U.S., there will be no work in the original plants," he said in the interview, published on Thursday.The threat to close American Axle's five U.S. plants, in Michigan and New York, comes a month after some 3,650 hourly workers represented by the United Auto Workers union walked out on strike.American Axle is a major supplier to General Motors Corp and was spun off from the automaker in 1994. The strike has caused parts shortages that have idled or partly idled 29 GM plants, including eight assembly plants. Other auto parts suppliers also have had to cut back because of the loss of GM production.American Axle has said wages and benefits run more than $70 per hour, about three times higher than at its competitors, and it will have to close plants unless it gets wage cuts to as low as $14 per hour.It has also sought to close New York plants in the towns of Tonawanda and Cheektowaga, and idle part of its sprawling production complex in Detroit, union officials have said.The union has rejected American Axle's call for steep wage cuts and filed an unfair labor practices complaint against the company.Talks aimed at breaking the impasse between American Axle and representatives of the UAW were under way on Thursday, said Renee Rogers, spokeswoman for the company. Intensive talks between the two sides broke off earlier this month and contacts have been sporadic since.Rogers said she did not know if local UAW leaders were represented at Thursday's negotiations. A spokesman for the UAW could not be immediately reached for comment.Dauch told the newspaper that Detroit-based American Axle was ready to negotiate buyouts and early retirement incentives in exchange for workers accepting lower wages and reduced benefits.(Reporting by Kevin Krolicki; editing by John Wallace and Steve Orlofsky)
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AMERICAN AXLE
By:
JOLYNA ,
Sun, 13 Apr 2008 01:55:43 GMT |
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DICK DAUCH AND THE SHAREHOLDERS OF
AMERICAN AXLE ENOUGH IS ENOUGH !!!
I am sick and tired of the CRAP that Dick Dauch and American Axle is trying to dish to its employees and their families.
I can’t believe that this man has the nerve to sit there and offer insulting wages with insulting “buy downs” and “buy outs”. He should be ashamed of what he is putting our 3600+ families through. Let’s not forget the other hundreds of thousands families that are being affected by this strike too. Not only in our country; but world wide.
He seems to think that his “buy downs” and “buy outs” will be “cushy and comfy” for his employees. These figures must be enough to replace the 14 years my husband has in at your company, the fact that we have to completely start over somewhere else – without the same pay – and allow our families to keep our houses. In my opinion, this man will never offer enough for the damage that has already been done and the wrath we are about to endure.
He smugly accepts a huge salary and bonuses while he threatens to close our plants because we aren’t making a profit large enough. However, he fails to announce to the world that these 5 plants fund the off shore plants and the off shore plants rake in the profits. How do you expect my husband and his co-workers to produce enough to finance all of these operations? Meanwhile, he is taking machines out of my husband’s plant and sending them to non-union plants. It’s a disgrace! AMERICAN Axle …yeah, real American.
I resent the fact that he is turning our lives upside down. I resent the fact we have to start over. I resent the fact we may have to TRY and sell our home and my kids may have to leave their school and the friends they know. Above all, I resent the fact that this is all because of 1 company’s greed!
I hope the whole Dauch family and members of the board can sleep well at night with their million dollar salaries; knowing their jobs and salaries are safe. While we are worrying and wondering how we are going to repair this financial and emotional mess that he has thrown us into. We can only hope that he acquires a conscience before it’s too late!
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