American Axle Strike
03-28-2008, 07:04 AM
#1
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Join Date: 08-18-2006
Location: Hatboro, PA
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American Axle Strike
This is from a news briefing from SME (Society of Manufacturing Engineers)
American Axle strike expected to close GM plants.
In continuing coverage from a previous briefing, USA Today (3/28, 3B, Carty) reports that auto supplier American Axle & Manufacturing (AAM) is entering "its second month with much of its union-represented workforce on strike," and the impact is now affecting General Motors' (GM) car production.
"GM confirmed Thursday that the strike will force it to idle the Detroit-Hamtramck assembly plant after Friday's lone shift, and a local union president in Lordstown, Ohio, said Thursday that his complex will be shut down on April 4," the AP (3/28, Krisher) adds. "Closing the Lordstown complex, which makes the Chevrolet Cobalt and Pontiac G5 small cars, could hurt GM the most since the cars are selling well due to high gasoline prices."
Bloomberg (3/28, Ortolani, Green) points out that the "strike at American Axle, GM's largest source of axles, forced the automaker to stop or slow production at 29 plants that build pickup trucks, sport-utility vehicles, vans, engines and vehicle parts. About 3,650 UAW members at Detroit-based American Axle struck on Feb. 26 over pay and benefits."
"American Axle has said wages and benefits run more than $70 per hour, about three times higher than at its competitors, and it will have to close plants unless it gets wage cuts to as low as $14 per hour," according to Reuters (3/27, Krolicki).
American Axle CEO says outsourcing a possibility. The Detroit Free Press (3/27, Walsh) reported that, in response to the UAW strike, Dick Dauch, chairman and chief executive officer of American Axle & Manufacturing, on Wednesday said AAM has "the flexibility" and "the right" to outsource all of its business "to other locations around the world." Dauch added, "We will not be forced into bankruptcy in order to reach a market-competitive cost structure in the United States. If we cannot compete for new contracts in the U.S., there will be no work in the original plants," which are located in Detroit, Pittsburgh, and two New York towns. However, "Dauch insisted he has no intention of turning American Axle...into an offshore company."
American Axle strike expected to close GM plants.
In continuing coverage from a previous briefing, USA Today (3/28, 3B, Carty) reports that auto supplier American Axle & Manufacturing (AAM) is entering "its second month with much of its union-represented workforce on strike," and the impact is now affecting General Motors' (GM) car production.
"GM confirmed Thursday that the strike will force it to idle the Detroit-Hamtramck assembly plant after Friday's lone shift, and a local union president in Lordstown, Ohio, said Thursday that his complex will be shut down on April 4," the AP (3/28, Krisher) adds. "Closing the Lordstown complex, which makes the Chevrolet Cobalt and Pontiac G5 small cars, could hurt GM the most since the cars are selling well due to high gasoline prices."
Bloomberg (3/28, Ortolani, Green) points out that the "strike at American Axle, GM's largest source of axles, forced the automaker to stop or slow production at 29 plants that build pickup trucks, sport-utility vehicles, vans, engines and vehicle parts. About 3,650 UAW members at Detroit-based American Axle struck on Feb. 26 over pay and benefits."
"American Axle has said wages and benefits run more than $70 per hour, about three times higher than at its competitors, and it will have to close plants unless it gets wage cuts to as low as $14 per hour," according to Reuters (3/27, Krolicki).
American Axle CEO says outsourcing a possibility. The Detroit Free Press (3/27, Walsh) reported that, in response to the UAW strike, Dick Dauch, chairman and chief executive officer of American Axle & Manufacturing, on Wednesday said AAM has "the flexibility" and "the right" to outsource all of its business "to other locations around the world." Dauch added, "We will not be forced into bankruptcy in order to reach a market-competitive cost structure in the United States. If we cannot compete for new contracts in the U.S., there will be no work in the original plants," which are located in Detroit, Pittsburgh, and two New York towns. However, "Dauch insisted he has no intention of turning American Axle...into an offshore company."
03-28-2008, 09:57 AM
#7
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Join Date: 06-27-2006
Location: Kingsville On
Posts: 732
What about all the private mechanic`s and dealerships making $160.00 hour charging car repairs using the book rate.I can R and R a rear wheel drive 700R transmission in 2 hours 20 minutes on my back using a floor jack under the tranny.
03-28-2008, 10:04 AM
#8
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Join Date: 11-23-2007
Location: Texas
Posts: 8,210
Average pay for technicians in the Dallas area is $22.00. Labor rates go from $85.00 to $100.00. But the post stated $70.00 included benefits. I have never calculated that figure so I have no idea what pay+benefits would be. My guess is around $28-$32.
03-28-2008, 10:51 AM
#9
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Join Date: 07-17-2006
Location: Dallas, GA
Posts: 6,050
I don't know what dealership that is, but they would go out of business here.
Most dealerships here charge around the $85/hr rate. Plus you have to remember that pays the mechanic and the shop itself. The mechanic is probably in the $15-$25/hr range. But book time is book time. They use that since the mechanic is working more than one job at a time usually. UAW workers are killing (at least helping out greatly) the US auto industry.
03-28-2008, 10:58 AM
#10
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Join Date: 06-27-2006
Location: Kingsville On
Posts: 732
Most Big 3 jobs are less than $30.00 per hour that extra $40.00 is for lots of other things all employers have to pay for.If you make $10.00 an hour your employer has to pay out alot more than that to have you work for them.
