Detroit American Axle Workers Are Angry About The Tentative Deal - 05/20/08

By Doug Cunningham

UAW workers in Detroit are angry about the tentative contract deal with American Axle, so much so that a vote on ratifying the agreement in Detroit has been postponed until Thursday. Other plants started voting on it Monday. The proposed agreement to end the nearly three-month old strike would slash wages by a third or more. But thanks to an infusion of more than $200 million from GM, workers will be offered buyouts, early retirement incentives and “buy-downs” spread over three years to help ease the pain of the pay cuts. American Axle has a production plant in Mexico that’s been working during the strike, and the company threatened to move all the production to Mexico if wages weren’t slashed in the U.S. UAW leadership admits it’s not a good contract settlement, but the UAW says it’s the best the union could do given the circumstances that it faced.