UAW reaches tentative agreement to end strike at key GM axle supplier
Published in Automotive News
The United Auto Workers union on Wednesday said it had struck a tentative contract agreement with Dauch Corp. to end a 10-day strike at the axle supplier's Three Rivers plant that had threatened to disrupt General Motors Co. truck production.
Nearly 1,000 workers at the plant in southwest Michigan walked out at the start of last week, demanding better wages, more time off, and no increases in their health insurance costs. The tentative contract includes a provision to pay members $30 an hour by 2030, and also meets other demands on healthcare and adding more vacation time and holidays.
If it had stretched on, the walkout could have severely affected GM pickup production. Detroit-headquartered Dauch, formerly known as American Axle, makes axles and other parts at the plant that primarily go into several GM truck models, with some components that also are used in the Chrysler Pacifica minivan and head to a different supplier. GM said as of earlier Wednesday the strike had not impacted its production.
UAW officials said that workers at the plant had made major sacrifices in 2008 during the Great Recession to save the facility, including taking cuts in pay from as much as $29 an hour to $14.50.
Nearly two decades later, the union said workers there still haven't made up those pay cuts, with the current wage scale topping out at $22 after a five-year progression.
"We are pleased to have reached a tentative agreement with UAW Local 2093 at our Three Rivers Manufacturing Facility," a statement from Dauch spokesperson Chris Son said. "We appreciate the efforts of both the UAW and Dauch labor negotiations teams to find common ground."
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