Cheektowaga American Axle Plant to Close?

Cheektowaga American Axle Plant to Close?

July 9, 2010 Updated May 10, 2008 at 7:36 PM EST

A new proposal by American Axle would close three of its plants including one in Cheektowaga. United Auto Workers President Ron Gettelfinger says today he thought the union was close to ending their strike against the auto parts supplier until this latest offer was put on the table.
Gettelfinger says the union does plan to stay at the bargaining table throughout the weekend, but he adds that things aren't looking good because the company continues to change its mind.

DETROIT (AP) - United Auto Workers President Ron Gettelfinger
said Saturday he thought the union was close to a contract deal to
end a strike against American Axle until the auto parts supplier
offered a proposal that includes closing three plants.
Gettelfinger told WWJ-AM in Detroit that the latest proposal
came as a surprise Friday. He says it included closing a facility
in Cheektowaga, N.Y., in addition to two other closures that had
been previously discussed, that was an "insult."
There had been hope for a settlement after General Motors
Corp.'s surprise announcement Thursday that it will throw in $200
million to help end the 10-week walkout, which has crippled
production of GM pickup trucks and sport utility vehicles.
But Gettelfinger said he hadn't wanted GM involved, and noted
the new offer came on the heels of GM's proposal.
"I think it definitely made it worse, because now we're facing
another closure," Gettelfinger said.
He said the union planned to remain at the bargaining table
through the weekend, but said: "I don't know where we're at
because the company changes their position every time we turn
around."
American Axle spokeswoman Renee Rogers tells The Associated
Press she couldn't comment on specifics of a proposal. She said
talks continued Saturday and the company continues to seek a U.S.
market-competitive labor agreement.
"We have consistently offered proposals significantly higher
than the agreement that our competitors have, because we want to
end this," Rogers said. "And they have been consistently turned
down by the UAW."
GM spokesman Dan Flores declined to comment Saturday on the
talks between the union and American Axle. But he said GM's $200
million offer was made with hope of helping to facilitate an
agreement.
A message seeking comment was left Saturday by the AP for UAW
spokesman Roger Kerson.
About 3,600 UAW members went on strike Feb. 26 at the five
plants in Michigan and New York in a dispute over wage and benefit
cuts the company is seeking and failing to reach a new contract
agreement.
Unions members previously had said the company wanted to
negotiate the closure of American Axle's Detroit and Tonawanda,
N.Y., forge operations. Gettelfinger confirmed Saturday those had
been agreed upon.
Detroit-based American Axle is a small company that gets 80
percent of business from GM, its former parent. It makes axles,
drive shafts and stabilizer bars for pickup trucks like the
Chevrolet Silverado, GM's top-selling vehicle.
Many of its U.S. competitors won deals from the United Auto
Workers to pay newly hired workers about $14 per hour. But American
Axle workers say they won't take that big of a pay cut from a
company that made $37 million last year.

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

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