Skip to: Content
Skip to: Site Navigation
Skip to: Search

November 22, 2008 3:14:48 CST

Learn about Newser Points »

« Back to the grid | Next story »

American Axle Deal Restarts GM Plants

Posted May 19, 08 7:52 CDT in Business 

(Newser) – General Motors is poised to resume production at dozens of idled plants as workers at American Axle & Manufacturing, a key GM supplier, have reached a tentative deal in their 11-week-old strike. The UAW strike had all but stopped the production of GM's highly profitable SUVs, pickups, and vans, reports the Wall Street Journal, sinking the automaker's first-quarter earnings and undermining its liquidity.

The deal was reached a few days after GM offered American Axle $200 million to help fund buyouts. American Axle was seeking sharp reductions in labor costs; the new contract cuts wages about $10 an hour, providing buyouts for employees leaving the payroll and “buydowns” for workers who stay at the lower wage. Workers will vote today and Thursday.

Source Wall Street Journal

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • GM Shrinks Fleet of Corporate Jets

    Nov 21, 08 1:38 PM CST
    GM Shrinks Fleet of Corporate Jets After facing turbulence on Capitol Hill over its corporate jets, General Motors is cutting two aircraft from the ranks, the Detroit News reports. “This is strictly the result of drastic cutbacks in travel around the globe,” said a spokesman. The automaker, which began this year with seven jets, also turned in two in September. GM spent $256,793 on flight costs for its top execs last year. More »

  • Obama Team Weighs Streamlined Auto Bankruptcy

    Nov 21, 08 10:55 CST
    Obama Team Weighs Streamlined Auto Bankruptcy Barack Obama’s transition team is looking at a streamlined, “prepackaged” bankruptcy for the Big Three automakers, Bloomberg reports. In a “prepack,” the companies already would have financing lined up when they go to court, and would have to reach agreements with banks, workers, and suppliers. The government likely would provide financing, but it “limits government financial commitment,” one lawyer said. More »

  • UAW Eyes Give-Backs to Help Big 3 Bailout

    Nov 21, 08 7:55 CST
    UAW Eyes Give-Backs to Help Big 3 Bailout The United Auto Workers appears to be easing off its “no more cuts” stance. The union is negotiating a swath of concessions it hopes will convince Congress to loan money to the Big Three, starting with the elimination of its controversial jobs bank, the Detroit Free Press reports. The bank pays laid-off workers, sometimes for years after their dismissal. More »

  • Bailout Wait 'Nerve-Wracking'

    Nov 21, 08 1:50 CST
    Bailout Wait 'Nerve-Wracking' Two grueling days of congressional hearings on a bailout for the auto industry were "hostile" and the wait for an answer is "nerve-wracking," General Motors CEO Rick Wagoner told the Detroit News yesterday. GM is ready now to show Congress detailed restructuring plans to convince lawmakers to hand over billions in aid. Legislators are requiring plans from each of the Big Three automakers before they'll agree to a rescue package.
    More »

  • Hey, Mitt, Your Naked Opportunism Is Showing

    Nov 20, 08 3:43 PM CST
    Hey, Mitt, Your Naked Opportunism Is Showing Mitt Romney is speaking sideways when he talks about Detroit these days, Joan Vennochi writes in the Boston Globe. The man who promised he would “not rest until Michigan is back” in the Republican primary is now urging bankruptcy for Detroit automakers. “If the auto industry could reinvent itself as quickly as Mitt Romney,” Vennochi writes, “it wouldn't need a bailout.” More »

United Auto Workers member Gary Reed carries a strike sign outside a union meeting in Detroit, Sunday.   (AP Photo/Paul Sancya)
American Axle and Manufacturing Holdings Inc. workers received details of a tentative contract agreement that could settle an 11-week strike by the UAW union.   (AP Photo/Paul Sancya)
United Auto Workers member Terasiena Cunningham, left, gives a thumbs down after attending a union meeting in Detroit, Sunday. American Axle workers received details of a tentative contract agreement.   (AP Photo/Paul Sancya)
United Auto Worker Local 235 President Adrian King talks to the media after a union meeting in Detroit, Sunday.   (AP Photo/Paul Sancya)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (
1
 of 4)

Tags

auto industry • General Motors • United Auto Workers • buyout • UAW strike


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular

Loading...

Other Business Stories

What is Newser?

2008 Codie Finalist

Face it: there's too much news. At Newser a team of editors and writers culls the most important stories from hundreds of U.S. and international sources and reduces them to a headline, picture, and two paragraphs. It's the Newser guarantee: we can take any report or column or video and pack what you need to know into 120 words or less. Newser's short-form aggregation, visual format, and unique information tools help you get more of the kind of news you want, in a quicker and more entertaining way. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »