UPDATE 2American AxleUAW talks stall strike plans set
(Recasts, adds detail, background)
By Kevin Krolicki
DETROIT, Feb 25 (Reuters) - Contract talks between American
Axle %26amp; Manufacturing Holdings Inc. (AXL.N: Quote, Profile, Research) and the United Auto
Workers were stalled on Monday, with the union’s contract set
to expire, leaving local bargaining units preparing to strike.
Union officials briefed on the talks said that talks
between the two sides have snagged on the union’s proposal to
create a “wage bridge” that would allow lower-paid new hires to
earn more with eventual seniority.
Another sticking point was Detroit-based American Axle’s
proposals to shutter facilities, said the officials, who asked
not to be named.
American Axle spokeswoman Renee Rogers said talks between
the two sides were continuing as of late Monday evening.
Analysts have said a prolonged UAW strike against the
Detroit-based company has the potential to disrupt production
of trucks and sport utility vehicles by General Motors Corp
(GM.N: Quote, Profile, Research), which ranks as the supplier’s largest customer.
The UAW’s current contract covering more than 3,000
union-represented workers in Michigan and New York expires at
midnight Eastern Time (0500 GMT).
With the chance of a work stoppage looming, American Axle
has stockpiled parts for GM, which accounts for most of its
sales. Continued…
