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NEWS & LETTERS, April - May 2008

Strike stops American Axle and GM

Detroit--The strike by 3,650 workers at American Axle and Manufacturing, now eight weeks old, is marked by grim determination on the part of the workers to maintain a decent standard of living and protect hard-won benefits. Despite profits of $37 million last year, American Axle is demanding a slash in wages from $27 an hour to $14 an hour, as well as other concessions.

When the strike started on Feb. 23, involving five plants in Michigan and two in New York, there were no negotiations scheduled between the company and union, the United Auto Workers, and none took place for four weeks. The company refused to provide the union with financial and other data concerning pension, healthcare and other benefit costs that the union demanded in order to analyze the company's economic condition. Finally, the company provided the information, and after a week negotiations were scheduled.

Since American Axle provides all of the axles for all of GM's light trucks and SUVs made in America, the thinking at first was that the strike would not last long because of the impact it would have on GM's auto production. However, because of poor auto market conditions and the ability to move axles among some plants, as well as the intransigence of the company, the strike continued. And it also helped draw down GM's auto inventory, which was very high due to the poor market conditions.

During this period, the company's CEO, Dick Dauch, launched a barrage of attacks against the striking workers, threatening to move the production of axles to other countries (he had closed a plant in New York in 2006 and moved the work to Mexico), recalling laid-off workers and advertising for jobs in the papers. But the strikers failed to be intimidated by these threats, and the laid-off workers refused to return--even though this meant they would lose their unemployment compensation.

The lengthening strike soon had its effect, and now 29 GM plants are either closed or have cut back production, affecting some of GM's best sellers. Some are now predicting that pressure from GM will help tip the scales for a settlement.

On the picket lines at the plant, the workers are receiving much support, from the community in food and donations, from workers from other plants in Detroit and outlying areas who are joining them on the picket lines, and from drivers travelling by who honk their horns and give a thumbs up gesture. The strikers have been both surprised by and appreciative of this outpouring from the community, especially in light of the bad economic conditions in Detroit. And they are conscious of the importance of their struggle--they say that they are striking for all of labor and the historic need to reverse the concessionary attitude of labor leaders throughout the country.

The strikers are also demanding to get any proposed settlement between the company and union at least a week ahead of any contract ratification. They are very much aware of the union tactic of first presenting a contract at the ratification meeting, allowing the workers no time to study the provisions before they vote.

The workers are getting $200 a week strike pay from the union, and the pickets are out in force at every plant entrance on a 24/7 basis, marching in solidarity in all kinds of weather. They are quick to make the point that while CEO Dauch is screaming about how important it is for the workers' wages to be cut in half, he hasn't offered to cut his salary of $l0.2 million last year, which increased by 9.5%.

In the meantime, the strikers are more than willing to take the battle to the company. As one picket declared when asked how long the workers would stay out on strike: "One day longer than the company."

--Andy Phillips

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