American Axle Proposal Cuts Pay, Offers Buyouts

Bloomberg reports: American Axle & Manufacturing Holdings Inc. will cut pay and offer buyouts to its workers, according to an agreement reached after an 11-week strike that halted some production at General Motors Corp. plants.

The automotive-parts supplier will offer buyouts of $140,000 to workers on the job 10 years or more, according to a contract proposal handed out at a United Auto Workers meeting in Detroit today. American Axle will pay a maximum of $105,000 over three years to ease workers into lower salaries, and those with seniority will be offered early retirement.

The agreement, which was reached yesterday and will be voted on by union members at plants in New York and Michigan tomorrow, marks the first step in getting the supplier's operations running again. General Motors, the world's largest automaker, has stopped or cut back production at 30 plants in North America due to the parts shortage from American Axle.

``I don't think it's going to pass,'' said UAW member and Detroit factory worker Patricia Karnuth after exiting the meeting. ``People are not happy with the deal.''

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	American Axle workers vote to end nearly 3-month strike	Associated Press	Sat May 17	0