Car NEWS log

posted by admin on Feb 27

General Motors and Chrysler undoubtedly are paying close attention to labor negotiations taking place at Detroit supplier American Axle & Manufacturing Holdings, as their truck production is at stake if workers strike. The contract between American Axle and the United Auto Workers union expires at midnight Monday.

American Axle supplies axles and driveline components for GM’s full-size pickups — the Chevrolet Silverado and GMC Sierra — and SUVs, including the Chevrolet Tahoe and GMC Yukon. It also supplies Chrysler trucks. In 2004, a one-day strike at American Axle affected output at a few GM truck plants.

As was the case in negotiations between the Big Three and the UAW last fall, American Axle is looking for a break from the union as it struggles with overcapacity and profitability; the union seeks to maintain the standard of living and job security for its members.

Michael Simonte, the company’s chief financial officer, said during an analyst conference in December, covered by Dow Jones, that American Axle wants to “reduce the fully loaded labor-hour cost” for U.S. hourly production workers. He said American Axle’s all-in cost — which includes wages and benefits — is about $65 an hour, and he said the company wants to get closer to $27 an hour, or $35 an hour including skilled trades workers.

The company also has said it wants flexibility on things such as job classifications and work rules that improve plant efficiency.

Tensions between the supplier and the union have increased with American Axle’s idling of its plant in Buffalo, N.Y., and its decision to build axles for GM’s Chevrolet Camaro in Mexico.