UAW preparing agreement to slash American Axle workers' wages, close plants

Details of the agreement have been reported on blogs run by American Axle workers and in the media. The Detroit Free Press reported on Thursday that a framework for a settlement was near, and would include the closure of two plants, substantially lower pay for all workers, and the breaking up of the national agreement into separate plant-by-plant contracts. The newspaper cited people briefed on the talks as the source for its information. Talks are expected to continue throughout the weekend.

According to the Free Press, wages would be cut to $17 an hour for production workers, $14 for non-production workers, and $25.50 for skilled trades workers.

Before the strike, American Axle workers earned $28.15 an hour, with skilled trades at more than $30 an hour. The terms outlined above would mean a pay cut of between $11 and $14 an hour (or upwards of $25,000 a year) for most workers.

Prior to the strike, the UAW had agreed to substantial wage cuts that would have given workers a few dollars an hour more than what they would receive under the framework reported by the Free Press.

Two forging plants would be closedat Tonawanda, New York, and in Detroit, Michigan. A third plant in Three Rivers, Michigan could also be closed.

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