- Nearly 1,000 UAW workers have walked off the job at American Axle’s Three Rivers plant.
- Union members say wages never recovered from deep cuts accepted during 2008.
- The strike could affect production of GM’s heavy-duty Silverado and Sierra pickups.
Nearly two decades after accepting massive pay cuts to help save their plant during the Great Recession, about 1,000 union workers at a major GM supplier have decided they’ve waited long enough. Members of United Auto Workers Local 2093 walked off the job at midnight on June 1 after contract negotiations with American Axle & Manufacturing, now operating as Dauch Corporation at the Three Rivers facility, failed to produce a new agreement before the deadline.
The union announced the strike under the slogan “No Contract, No Axles,” a fitting message given the plant’s role in producing axles used in heavy-duty versions of the Chevrolet Silverado and GMC Sierra. According to union officials, those components ultimately make their way to GM’s truck assembly operations, meaning a prolonged work stoppage could ripple through the automaker’s production network.
The Cuts That Never Came Back
At the center of this whole thing is a grievance that dates back to 2008. During the financial crisis, workers agreed to substantial wage concessions to keep the facility operating. According to the UAW, some employees saw their hourly pay fall from roughly $29 to $14.50.
Read: Oversight After ’23 Strikes Cost UAW $80 Million
The union argues those sacrifices were supposed to be temporary. Instead, workers say they are still trying to recover lost ground 18 years later. UAW officials claim top pay at the plant currently reaches about $22 per hour after a five-year progression, well below where inflation-adjusted wages would be today.
Profits Up, Pay Stuck
Union leaders have also highlighted the company’s financial performance. They say American Axle generated roughly $8.4 billion in profits over the past decade while executive compensation climbed into the hundreds of millions of dollars. The UAW contends workers deserve a larger share of those gains.
American Axle tells The Detroit Free Press that it remains committed to reaching a deal. Company spokesman Christopher Son said the supplier is disappointed employees chose to strike and believes the best outcome for everyone involved can still be achieved through negotiations.
The company added that it intends to continue bargaining in good faith and hopes to reach a fair agreement quickly. If the strike drags on, expect supply chain issues for GM. In other words, some wildly expensive pickup trucks will only get more expensive thanks to greedy dealers.
