UAW Ratify Four-Year Contract With American Axle
United Auto Workers union has finally ratified the new four-year contract with American Axle & Manufacturing Holdings Inc. on late Thursday, ending the three-month-long strike against the company by a margin of 78 percent votes at its Detroit plant.
With the approval of the agreement that calls for wage cut & costs and closing of two plants, the production of various motor parts for General Motors Corp. will resume. The contract was proposed to the workers on May 18 in a hope to settle down the wage-and-benefit dispute at American Axle & Manufacturing Holdings Inc.
Despite the contract’s tough terms, including a cut in wages by more than one-third, workers went on to vote. They started voting on the agreement on May 19 which was concluded on Thursday only. According to UAW officials, the contract had been supported by 1,172 votes cast out of 1,314 votes.
UAW president said, “Our members have had to make some tough decisions for themselves and their families and have done so with careful deliberation."
Other UAW locals in Three Rivers, Michigan and in New York had already voted to ratify the four-year contract this week.
The UAW workers went on the strike against the American Axle on February 26, that continued for almost three months. The strike caused the parts shortage for the company’s major customer GM that accounts for about 80 percent of its business. It has affected more than 30 plants of GM at many places across America. Detroit based American axle makes axles, drive shafts, stabilizer bars mainly for GM’s pickup trucks and large sport vehicles.
GM estimated that the strike cost it about $800 million in March alone. GM also agreed to kick in $218 million to help end the dispute between American Axle and the union.
