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Impact of parts strike widens to 28 GM factories; talks continue

03/08/2008

By TOM KRISHER  / Associated Press

The United Auto Workers and auto parts maker American Axle and Manufacturing Holdings Inc. negotiated Friday, trying to end an 11-day strike that has affected dozens of factories in the U.S. and Canada.

Company spokeswoman Renee Rogers said negotiations ended Friday evening and were to resume at 9 a.m. EST Saturday. She said she did not know what was discussed.

The bargaining came as General Motors Corp. said parts shortages from the strike would force it to shut down part or all of 28 assembly and components factories. On Friday, GM added 17 components plants to the growing list and said on its Web site that the affected plants employ more than 37,000 hourly workers.

Factories added Friday included Flint South, engines; St. Catherines, Ontario, engines and components; Baltimore, transmissions; Bay City, engine and transmission components; Bedford, Ohio, and Defiance, Ohio, casting; Fredericksburg, Va., transmission components; and Parma, Ohio, transmission components; two transmission plants in Ypsilanti Township; Tonawanda, N.Y., engines; and stamping plants in Flint, Grand Rapids, Indianapolis, Mansfield, Ohio, Marion, Ind., and Parma, Ohio.

All 17 additional plants are scheduled to go on partial shutdown starting Monday, the Detroit-based automaker said.

Not all workers at the plants will be laid off, but those who are will get most of their pay and benefits under their contract with GM.

Messages seeking comment were left with the UAW.

About 3,600 UAW workers at five American Axle plants in Michigan and New York walked off their jobs Feb. 26 after contract talks broke down over wages and other issues. The strike triggered parts shortages, mainly for GM's pickup trucks, large sport utility vehicles and vans.

GM has said it has an ample supply of the vehicles and that it would take up to 90 days for the strike to affect sales of its flagship pickups, the Chevrolet Silverado and GMC Sierra.

Detroit-based American Axle makes axles, drive shafts and stabilizer bars for GM, Chrysler LLC and other automakers. GM, which spun off American Axle in 1994, makes up nearly 80 percent of the company's business.

The strike also could affect Chrysler, which says its Newark, Del., assembly plant could be temporarily closed as early as next week. American Axle makes components for Dodge Durango and Chrysler Aspen SUVs made in Newark, as well as two versions of the Dodge Ram pickup made in Saltillo, Mexico, spokeswoman Michele Tinson said.

The UAW has said American Axle is demanding wage reductions of up to $14 an hour as well as elimination of future retiree and pension benefits. The union also accused the company of unfair labor practices, which the company has denied, and it said American Axle failed to provide the union with enough information to evaluate its proposals.

American Axle, however, says the union should give the company the same wage concessions it has agreed to at other suppliers and automakers. American Axle says its manufacturing workers can make up to $73.48 per hour in wages and benefits, three times the rate at its U.S. competitors. The company wants to cut that to $20 to $30 an hour, which would be similar to the agreements reached between the UAW and the in-house axle-making operations at Ford Motor Co. and Chrysler as well as at other suppliers such as Dana Corp. and Delphi Corp.

The company also has said its original U.S. locations have lost money for the past three years.

___

On the Net:

American Axle and Manufacturing Holdings Inc.: http://www.aam.com

General Motors Corp.: http://www.gm.com

United Auto Workers: http://www.uaw.org

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