DETROIT (AP) - Both sides in the nearly two-month strike against
auto parts maker American Axle and Manufacturing Holdings Inc. are
reporting progress in contract talks, but a company spokeswoman
says a deal is not imminent.
"Talks are progressing, and that's a good sign. But any talk of
a tentative agreement is premature at this time," spokeswoman
Renee Rogers said Thursday.
On Wednesday, the United Auto Workers canceled a planned Friday
rally to support the strikers, also citing progress in the talks.
About 3,600 UAW members went on strike Feb. 26 at five plants in
Michigan and New York in a dispute over wage and benefit cuts the
company is seeking.
Negotiations were continuing Thursday, Rogers said.
The UAW has been considering a new contract offer from American
Axle since Saturday. Several messages seeking comment were left
Thursday with the UAW.
Detroit-based American Axle makes axles, stabilizer bars, drive
shafts and other parts mainly for General Motors Corp.'s pickup
trucks and large sport utility vehicles. The walkout has affected
production at nearly 30 GM factories, and GM accounts for 80
percent of American Axle's business. Some of the idled plants have
returned to work using parts made at American Axle facilities in
Mexico.
So far the strike hasn't hurt GM much because pickup trucks and
SUVs haven't been selling in an uncertain economy with high
gasoline prices.
But on Thursday, UAW workers at a plant in Delta Township near
Lansing went on strike, halting production of GM's hot-selling
crossover vehicles, the Buick Enclave, Saturn Outlook and GMC
Acadia.
Industry analysts have speculated that the strike over local
contract issues is an attempt by the union to draw GM into the
American Axle talks. Progress in the American Axle negotiations
came shortly after the UAW threatened strikes at the crossover
factory and several other locations.
A local union leader at the Delta Township plant said the strike
had nothing to do with American Axle.
Both sides in the American Axle strike have fired barbs at each
other, with the union accusing the company of failing to bargain in
good faith or give it financial information. The union says the
company wants to cut pay and benefits by more than half.
The company has said the union won't give it the same deal it
has given to other parts suppliers that include lower wages and
benefits.
American Axle has threatened to move production from the five
U.S. plants to its foreign operations if it can't get a contract
that it considers competitive with other U.S. parts suppliers.
American Axle shares were down 30 cents, or 1.4 percent, at
$21.58 in Thursday midday trading.

(Copyright 2008 by The Associated Press. All Rights Reserved.)