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Apr-18-2008

UAW on strike at GM crossover plant in Michigan

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CONTENTS:

During the weekend, negotiators for UAW Local 598 and the automaker agreed to continue talks until an agreement is reached. (More...)
The strike shut down production at the H2 plant in Mishawaka because of a parts shortage. (More...)
Local suppliers and other businesses dependent on the plant's production also have been hurt by the shutdown. (More...)
Andersson said that GM has a plan in place for handling a potential shortage. (More...)
American Axle wants to cut wages in order to become competitive with other parts makers. (More...)
The walkout adds to GM's labor-related struggles after it reached a national agreement with the UAW following a two-day strike in September. (More...)
Help from GM could be in the form of more flexible pricing or cash contributions toward attrition packages, said Erich Merkle, vice president of forecasting at Grand Rapids-based consulting firm IRN Inc. Morgan Stanley auto analyst Jonathan Steinmetz wrote in a note to investors this month that there could be a combination of a financial contribution from GM, business guarantees and price cuts. (More...)
Those workers will earn about $14 an hour instead of $18; Chrysler won't hire any fill-ins. (More...)
"We have been able to produce vehicles in all of our car plants, besides one. (More...)
McClain, who has worked 23 years as an auto assembler, also farms part-time. (More...)
GM shares were down 7 cents, or 0.4 percent, at $19.83 in afternoon New York Stock Exchange trade. (More...)

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During the weekend, negotiators for UAW Local 598 and the automaker agreed to continue talks until an agreement is reached. "There will be no strike by UAW Local 598 workers," the union said on its Web site. The UAW Flint local, along with locals in Delta Township and Warren, issued strike notices to the automaker last week, in the midst of negotiations regarding local contracts that typically define plant issues such as overtime and work rules. Negotiations between the UAW and American Axle & Manufacturing Inc. are to continue today, as the strike at the Detroit supplier enters its eighth week. During the last week, as negotiations resumed after a month of stalled talks, the two sides have exchanged proposals, with the company and the UAW saying that they were far apart. On Feb. 26, about 3,650 American Axle workers at four operating plants walked off the job after contract talks collapsed leaving major economic issues such as wages and attrition packages undetermined. Ford Motor Co. has sold three plants that once belonged to its spin-off Visteon Corp. [1] DETROIT, April 16 (Reuters) - American Axle & Manufacturing Holdings Inc (AXL.N: Quote, Profile, Research ) and the United Auto Workers (UAW) have made significant progress towards an agreement to end the union's seven-week strike at the parts maker, influential industry publication Automotive News reported on Wednesday. The two sides have made progress on wages, health care and job classification issues and a tentative contract could be reached by this weekend, the publication reported on its website, citing a source familiar with the discussions.[2]

In the grand scheme of things, given the economy and the auto industry, having the jobs in the first place is most important," said Scott Watkins, a consultant at East Lansing-based Anderson Economic Group. "The good news is that those temporary jobs are there at any amount." Detroit's automakers usually hire temps to take the place of vacationing factory workers. GM said it hires a few thousand workers across the country; Ford placed its number in the hundreds. The tally of summer hires this year will depend on the carmakers' production schedules and, at GM, could be affected by the strike at parts maker American Axle & Manufacturing Inc. A parts shortage created by the stoppage has forced GM to idle or cut shifts at about two dozen factories.[3] General Motors Corp. will cancel one shift of production at its Oshawa, Ont., car plant beginning Monday, but restore another shift for two weeks at the neighbouring truck plant as the impact from a strike at a major parts maker ripples through the auto maker's North American operations. The seven-week strike at American Axle and Manufacturing Holdings Inc. has caused GM to shut most of its large pickup truck plants for several weeks - including the Oshawa truck plant. It's also affecting other parts makers already battered by the slump in U.S. sales, soaring commodity prices and permanent plant shutdowns by the Detroit Three auto makers in the past two years.[4] DETROIT (Reuters) - A local unit of the United Auto Workers went on strike on Thursday at a General Motors Corp (GM.N: Quote, Profile, Research ) plant that builds fast-selling crossover vehicles, adding to disruptions caused by the union's walkout at American Axle & Manufacturing, a major supplier to the automaker.[5] A second General Motors Corp. plant that builds passenger cars will soon be affected by the strike at American Axle & Manufacturing Inc. GM will idle a third shift starting April 21 at its Oshawa, Ont. car plant, where the automaker builds one of its staple vehicles, the Chevrolet Impala full-size sedan, GM Spokesman Stew Low said.[6]

Roger Kerson, a UAW spokesman, could not be immediately reached for comment. Some 3,600 UAW members started their strike against American Axle plants in Michigan and New York Feb. 26. Since American Axle supplies General Motors Corp. with key parts, such as rear axles, the strike has slowed or stopped production at some 30 GM or allied plants since then, including the GM SUV assembly plant in Moraine.[7] With bargaining picking up steam, the UAW on Wednesday called off a rally slated for Friday in Hart Plaza. Before the latest bargaining session, which has been under way for a week, little progress had been made on key economic issues such as wages, benefits, buyouts and buydowns. The strike started Feb. 26, when 3,650 UAW-represented workers walked off their jobs at four operating American Axle plants in Michigan and New York. Ten GM factories are idle because of the strike, and production has been reduced at 17 of its other factories. Vince Peckins, sales manager at Demaagd GMC-Nissan in Battle Creek, said he could use a little inventory.[8] Doug Rademacher, president of UAW Local 602, which represents workers at the Lansing plant, said talks have broken off and that he didn't know when they will resume. He dismissed speculation that the strike is part of a UAW strategy to draw GM into the lengthy labor dispute with partsmaker American Axle & Manufacturing Inc. The UAW walked off the job at American Axle plans Feb. 26.[9] UAW Local 730 represents more than 1,000 workers, although some have been temporarily laid off because of a seven-week strike at supplier American Axle and Manufacturing Holdings Inc. that has affected 29 GM factories and a plant in Indiana that makes GM's Hummer under contract.[10] There will be no strike by UAW Local 598 workers," read the message. Two other locals, in Warren and Lansing, last week issued five-day strike notices against GM. Another local in Grand Rapids has warned GM that it may issue a five-day notice. The locals say they're pushing for a resolution to plant-level contract negotiations that have been under way since last fall. Monday, GM said 25 of its plants are affected by a parts shortage created by the strike at American Axle & Manufacturing Inc., down from 30 previously.[11] UAW Local 602 President Doug Rademacher didn't respond to messages seeking comment. A UAW strike at parts-supplier American Axle & Manufacturing Holdings Inc., now in its eighth week, has already shut or partially closed 28 of GM's vehicle and parts plants.[12]

A strike at supplier American Axle & Manufacturing Holdings Inc. (AXL) has forced GM to idle all or parts of about 30 plants, mainly affecting pickup truck and SUV production. While GM has an ample inventory of pickups and SUVs, its inventory on the products made at Delta Township is tighter.[13] Industry analysts have speculated that the strike is an effort by the union to get GM involved in a two-month walkout at parts supplier American Axle and Manufacturing Holdings Inc. Flores would not comment when asked about a possible American Axle connection and said he did not know the specific issues involved in the Delta Township walkout.[14]

Workers at the Delta Township plant near Lansing, which makes GM's fastest-selling new crossover vehicles, could strike as early as Thursday, while workers at the Warren transmission plant could strike Friday. Local unions in Arlington, Texas; Parma, Ohio; and Flint also had threatened strikes but since have withdrawn those threats. Industry analysts have speculated that the UAW is using the strike threats to try to draw GM into its talks with American Axle.[10] A parts shortage from that stoppage forced GM on Wednesday to cut shifts short at the plant. Another GM local in Warren has threatened to strike GM by 10 a.m. Friday if there's no plant level contract by then. The Lansing strike is taking place in a town where the UAW and community have a long history of working with well with GM. The automaker opted to build the Delta plant, its first new factory in years, after a massive local campaign by local community leaders. As part of the deal, the union agreed to adopt flexible, money-saving work rules GM is pushing at all its plants. Several workers interviewed as they walked off the job at GM said they were told by local union leaders that a strike was called because dozens of local contract issues are unresolved after months of negotiations. Many said that while they support the union's decision to strike, they question the timing.[9] Workers represented by UAW Local 602 at GM's Delta Township, Mich., assembly plant had issued a strike threat to GM in a dispute over local contract issues such as job classifications.[13]

The bright sun and warm weather seemed to equal the optimism if not the mood as the workers urged passersby to honk in support. Most obliged before the workers '' some with their children and their dogs '' began to circle around the nearly empty parking lot at the American Axle plant, just off U.S. 131. They marched by the front entrance to the plant, some shouting "USA, USA," before concluding a two-hour rally. "It's nice to see the support we get from different locals and unions," said Cindy Hahn, of Sturgis, a machine technician with 14 years at the facility. "It's great to know that we are not standing alone on this." On a day when the Associated Press reported both sides are reporting some progress in contract talks in the strike against auto parts maker American Axle, day 52 provided hope. "I think they are moving ahead," said Bill Younts, UAW Local 2093 vice president, said.[15] DETROIT (Reuters) - American Axle & Manufacturing Holdings Inc (AXL.N: Quote, Profile, Research ) and the United Auto Workers have made progress in talks aimed at ending a seven-week strike at five U.S. plants, but talk of a tentative agreement remains premature, a company spokeswoman said on Thursday.[16] The bitter labor stalemate between American Axle and Manufacturing Holdings Inc. and the United Auto Workers appears to be over, with significant progress taking place at the bargaining table, Automotive News reported. A tentative contract agreement could be reached by this weekend, a source familiar with the discussions told Automotive News late Wednesday. 'They are very close,' the source said. 'They could reach an agreement by this weekend. As with any protracted labor negotiation, there is no guarantee a deal can be reached, but this is the first sign of real progress in the dispute that has all but halted General Motors Corp[17]

About 3,600 United Auto Workers members at five American Axle & Manufacturing plants in Michigan and New York went on strike Feb. 26 after the auto parts maker proposed cutting hourly wages about in half.[18] About 3,650 American Axle workers represented by the UAW have been on strike at five U.S. plants in Michigan and New York since Feb. 26.[2]

The strike by 3,650 UAW members began at five American Axle plants on Feb. 26 and has since idled or slowed up to 30 GM operations in the U.S. By Saturday, GM will have lost 142,782 production units since the strike began, according to the Automotive News data center. Most of the lost production has been SUVs and pickup trucks ' and GM has months of inventory to sell in those vehicle lines.[17] The strike also has begun to stall GM's production of sedans, including the Cadillac DTS and Buick Lucerne at the Detroit-Hamtramck car assembly plant. Other GM car production is now threatened. Despite those threats, GM has not intervened in the American Axle negotiations. GM, meanwhile, is slowing production of the HHR crossover at its assembly plant in Ramos Arizpe, Mexico, because of a shortage of parts made by American Axle. Similar action affecting the plant's Saturn Vue line could be taken soon afterward, a well-placed GM source in Mexico told Automotive News late Wednesday. The HHR and Saturn Vue, sold as the Chevrolet Captiva in Mexico, are both exported to the United States. 'This (American Axle) strike has affected us,' the source said, speaking on condition that his name should not be used. He said if the dispute at American Axle continued, GM's production of Kodiak trucks in Silao, Mexico, might also be hit soon. 'The idea is to continue working with our current inventory (of parts and components) but at a slower pace,' he said.[17] Negotiations between the UAW and American Axle are to continue today. The strike has forced GM to cut or halt production at 27 plants including its Detroit-Hamtramck factory, where GM stopped making the Cadillac DTS and the Buick Lucerne at the end of March.The Malibu has been watched closely since then, because the vehicle is key to GM's strategy to win consumers who are turning away from gas-thirsty trucks and toward more fuel-efficient cars.[19]

GM's production already is stymied by the UAW strike at parts maker American Axle & Manufacturing Holding Inc. About two dozen plants have been idled or partially shut down by that stoppage, though none that produce vehicles as critical as the crossovers.[20] LORDSTOWN ''' Production will not halt at the car assembly plant at Lordstown GM '''for the foreseeable future''' because of a parts shortage caused by a strike against American Axle and Manufacturing plants. Dan Flores, GM spokesman in Detroit, said he could not speculate about '''next week or a month from now.'''[21] A second General Motors passenger car production plant will soon be affected by the strike at American Axle & Manufacturing. GM will idle a third shift starting 21 April'at its Oshawa, Ontario, plant, where the company produces one of its staple.[22] The layoffs came after a strike that began Feb. 26 against American Axle & Manufacturing Holdings, which is a major supplier to General Motors. The strike, which continues, affected several GM plants and rippled over to GM suppliers such as Eaton.[23] General Motors will not run out axles for the Chevrolet Malibu and Pontiac G6 any time soon despite what some observers and UAW local leaders have said, Bo Andersson, GM's group vice president for purchasing and supply chain, said late Tuesday, April 15. If true, that means if the UAW and American Axle and Manufacturing Holdings Inc. may have a long wait if they expect GM to resolve the union's bitter seven-week strike.[24] The impact of the continuing strike at American Axle and Manufacturing Holdings Inc. in the United States will soon hit another General Motors plant in Oshawa.[25]

The plant may be affected by the seven-week strike at American Axle & Manufacturing Holdings Inc., which produces parts for GM, Vargesko said. "It's day-by-day, week-by-week," Vargesko said.[26] DETROIT (AP) - Both sides in the nearly two-month strike against auto parts maker American Axle and Manufacturing Holdings Inc. are reporting progress in contract talks, but a company spokeswoman says a deal is not imminent.[27] DETROIT (AP) - The United Auto Workers union on Wednesday called off a planned rally in support of striking workers at American Axle and Manufacturing Holdings Inc., saying it was making progress in talks with the auto supplier. The rally was scheduled to be held this Friday in downtown Detroit.[28] The United Auto Workers has called off a rally planned for Friday in Detroit, which could indicate progress in the talks to end the strike at American Axle & Manufacturing. The UAW earlier this month had announced the rally as a way to show support for the 3,650 striking workers.[29]

Crimped by the axle strike, workers at Janesville'''s sister SUV plant in Arlington, Texas, started a three-week layoff last week. In the meantime, UAW and American Axle negotiators remained far apart in their talks, the Detroit Free Press reported Tuesday.[30]

Flores said the only GM car assembly plant closed because of a parts shortage related to the strike at American Axle is the Detroit-Hamtramck facility, at which are built the Buick Lucerne and Cadillac DTS sedans. About 2,000 hourly and salaried workers are affected by the temporary shutdown, he said.[21] GM has already been forced to at least partly idle about 30 North American plants because of parts shortages due to the UAW's more than seven-week strike at American Axle.[31]

The strike has caused General Motors Corp. (GM), American Axle's largest customer, to idle all or parts of about 30 plants.[32] General Motors Corp. is American Axle's largest customer, and the strike has affected 30 GM plants as well as a plant in Indiana that makes Hummers under contract.[28]

American Axle (NYSE: AXL) is a key supplier to GM. The labor dispute caused a parts shortage that has forced General Motors to close or suspend work at 29 factories, including stopping production at its Wentzille, Mo., assembly facility in early March. Detroit-based General Motors (NYSE: GM) produces the Chevrolet Express and GMC Savana vans at its assembly plant in Wentzville.[33] GM has had to slow or idle about 30 assembly and parts plants as a result of the strike at American Axle. The automaker has been doing its best to avoid intervening in the strike at the parts supplier it once owned, though a halt in production of the G6 and Malibu would have likely forced its hand, as dealers only have a slim 40 day inventory of the two sedans.[34] In addition to the American Axle walkout having forced GM to fully or partially cut back production at more than two dozen plants, a GM plant near Lansing, Mich., that makes the company's hot-selling crossovers was partially shut down Wednesday due to a strike at supplier Alliance Interiors.[35] The American Axle strike has hindered production at 29 GM plants. Most of the plants that have been affected are those that make pick-up trucks and sport-utility vehicles and component plants that supply the assembly plants.[36] GM's crossover vehicles are produced at the Delta Township factory. Global Insight Analyst Aaron Bragman says while GM's been able to weather the closing of truck plants because of the American Axle strike, that is into its seventh week, it would be really hurt if the Lansing Delta Townshp plant has to close.[37] A local union leader at the Delta Township plant said the strike had nothing to do with American Axle. Both sides in the American Axle strike have fired barbs at each other, with the union accusing the company of failing to bargain in good faith or give it financial information.[38]

Thursday's strike by workers at GM's Delta Township plant was the latest salvo in a spreading battle between the United Auto Workers union and General Motors and its suppliers. "It's just crazy," one GM official who did not want to be named told AFP.[39] NEW YORK - United Auto Workers walked off the job at General Motors Corp.s Delta Township plant at 10 a.m. on Thursday after a deadline passed with no deal on a local contract. Get stories by e-mail on this topic.[40] General Motors Corp. workers at a Michigan plant struck today in a dispute over a local contract, threatening sales of the automaker's newest sport-utility vehicles. United Auto Workers members at Local 602 left their jobs at the Lansing/Delta Township SUV factory after a 10 a.m. deadline, Dan Flores, a spokesman for the Detroit-based company, said.[12]

A United Auto Workers strike against a small Lansing-based supplier has affected production of General Motors Corp. popular crossover SUVs, the automaker said on Wednesday. A walkout at Alliance Interiors, which produces carpeting for the Buick Enclave, Saturn Outlook and GMC Acadia, created a parts shortage that forced GM to cut its first shift short on Tuesday, GM spokesman Dan Flores said.[20] JANESVILLE - The 7-week-old United Auto Workers strike against a key General Motors supplier again will curtail production at the automaker'''s plant in Janesville.[30]

DETROIT — Union leaders for a General Motors Corp. (NYSE:GM) plant near Grand Rapids have sent a letter threatening to have workers strike if talks over local issues aren't resolved soon, the automaker said Tuesday.[10] Talks aimed at a new local operating agreement at Flint Truck Assembly Plant restarted Monday without the pressure of a strike looming. UAW Local 598 pulled back from its threatened Thursday strike after working out most local issues at the General Motors plant, Shop Chairman Mark Hawkins said.[41]

Jim Marcum, the locals financial secretary, said the talks are not related to the American Axle strike. "We still dont have a local contract even though ours expired last September," he said. "What theyre negotiating now has nothing to do with American Axle." Local plants negotiate their own operating agreements separate from the national contract, which was settled last year. The local contract deals with issues such as overtime and work rules.[42] Industry analysts have speculated that the strike over local contract issues is an attempt by the union to draw GM into the American Axle talks.[27]

The strike warning had come with most of the 2,900 hourly and 265 salaried workers at Flint Truck already idled by the American Axle strike. GM and the UAW reached a national labor agreement last fall, but local unions negotiate their own operating agreements with management.[41] Rademacher rejected any notion that the strike is part of a union strategy to get GM into the dispute with parts-maker American Axle & Manufacturing Inc., where workers walked off the job in February.[43] The rate remained high in part because of layoffs related to the United Auto Workers strike at American Axle and Manufacturing Holdings Inc. [44] The United Auto Workers union and supplier American Axle & Manufacturing Holdings Inc. appear to be progressing in labor negotiations, according to media reports.[45]

Although local union officials deny it, industry analysts say the walkouts are an effort to draw GM into the unions bitter, two-month contract dispute with parts maker American Axle and Manufacturing Holdings Inc.[42]

The company has said the union wont give it the same deal it has given to other parts suppliers that include lower wages and benefits. American Axle has threatened to move production from the five U.S. plants to its foreign operations if it cant get a contract that it considers competitive with other U.S. parts suppliers.[38] "Clearly, particularly in North America, I would characterize the supply base as generally distressed," Keith Wandell, president of automotive interiors giant Johnson Controls Inc., told investors and analysts during a conference call yesterday. Such Canadian parts makers as Magna International Inc., Martinrea International Inc. and others have been affected by the GM shutdowns and the slump in the U.S. market. The companies have shut some of their operations in Ontario and elsewhere until GM resumes production at several plants that receive parts from American Axle.[4] The first GM plant in Mexico has started to feel the effects of American Axle's work stoppage. GM halted production of the Chevrolet HHR at its assembly plant in Ramos Arizpe, near Saltillo, one of three the automaker operates in Mexico.[19]

The UAW has been on strike against American Axle for nearly two months, and more than 30 GM plants have been affected.[42] The UAW also launched a strike on April 11 against a GM plant in Warren, Michigan which makes transmissions for a variety of GM passenger cars. The historic national contract the UAW and GM signed last fall specified that both sides still had to work out the details of local contracts, which traditionally have controlled staffing levels and other important issues. Sean McAlinden, vice president of research at the Center For Automotive Research, said GM had been trying to use the local negotiations to reduce staffing and to re-classify more jobs as "non-core," which means GM can fill them with employees making half the standard contract wage of 29 dollars per hour.[39] The Impala is a key vehicle for GM, which sold nearly 72,000 of the sedans through March of this year. It's GM's best-selling auto behind the Chevrolet Silverado pickup, and was the nation's seventh most-purchased vehicle in March. Oshawa car is the second sedan plant to be affected by the strike, which began Feb. 26 after 3,650 union members at five plants in Michigan and New York walked off the job after their previous contracts expired.[6]

The factory, which employs about 3,400 hourly workers, makes the Buick Enclave, Saturn Outlook and GMC Acadia crossover vehicles that are selling well for GM. UAW Local 602 official Harold Brown handed out "UAW On Strike'' signs from the trunk of his car as workers left the plant. He reminded them to go to the union hall to leave telephone numbers and sign up for picket duty.[14] Members of UAW Local 602 walked out of the GM plant in Delta Township that makes the Buick Enclave, Saturn Outlook and GMC Acadia large crossover vehicles. Local 909 has set a 10 a.m. Friday strike deadline at a transmission plant in Warren, one that makes the four- and six-speed gears for nearly all of GMs cars including its fastest-selling model, the new Chevrolet Malibu.[42] On Thursday, UAW workers at a plant in Delta Township near Lansing went on strike, halting production of GM's hot-selling crossover vehicles, the Buick Enclave, Saturn Outlook and GMC Acadia.[27] Earlier in the week, the UAW approved a strike against Alliance Interiors, a small supplier that feeds parts to the Delta Township plant, forcing GM to curtail production of the Buick Enclave, Saturn Outlook and GMC Acadia.[39]

In addition to GM strike, production could be halted by a UAW strike at a small supplier that produces carpeting for the crossover SUVs built at the plant. About 90 workers at Lansing-based Alliance Interiors went on strike Tuesday because they have no labor contract and have been trying to secure one for almost a year.[9] Production at the plant had already been disrupted by a UAW strike on Wednesday by about 90 workers at local automotive parts supplier Alliance Interiors.[5]

The UAW, which represents 3,600 workers at American Axle, has been on strike against the company's five U.S. plants for nearly two months.[28] Stew Low, GM's director of communications, said the company is reducing car output because of a shortage of parts from American Axle, where a strike by 3,600 workers has closed five U.S. operations since late February.[25] Low said it is unclear whether GM could cancel the layoff at the car plant if American Axle and the United Auto Workers reach a settlement during the next few days.[25] The United Auto Workers called off a protest scheduled for Friday at the American Axle plant in Detroit. That could be a sign that the two sides are making progress.[46]

Automotive News also reported that a UAW protest rally scheduled for Friday in support of striking American Axle workers had been called off because of the progress in the talks, citing the former president of a UAW local unit that represents American Axle workers in Detroit.[2] The UAW canceled a rally planned for tomorrow in Detroit to support striking American Axle workers, according to Local 602's Web site. The cancellation is a sign that a tentative contract agreement may be reached this weekend, Automotive News reported yesterday, citing unnamed sources close to the talks.[12]

Expectations that the two sides might be close to a deal heightened on Wednesday after the union opted to postpone a planned rally in Detroit on Friday in support of the striking American Axle workers. "Things are progressing but talk of a tentative agreement is premature at this time," American Axle spokeswoman Renee Rogers said.[16]

Wendy Thompson, a labor activist and former president of a UAW local in Detroit that represents American Axle workers, said UAW officials told workers that the union is making progress so the rally was delayed.[28] American Axle workers have been on strike for nearly two months. The protesters say their walkout is about more than just their jobs. "For 52 days, we've been fighting for our jobs, but it's got much bigger than us," said Bill Younts, vice president of U.A.W. Local 2093. "It's about jobs all over this nation. This is what this means to us today, that our jobs are worth fighting for."[46] GM accounts for 80 percent of American Axles business and the automaker would have leverage over the supplier. He said it is amazing that GM and the union got "through all of the trouble and pain that theyve gone through and then had a local strike flare up into something like this. Its sad and we hope its short lived."[42] GM is already suffering from the loss of pickup and truck-based sports utility vehicle production because of a nearly two-month long strike at a key supplier, former subsidiary American Axle and Manufacturing Holding Inc.[39] General Motors Corp.' s top purchasing executive said Tuesday he does not expect the UAW's strike at American Axle & Manufacturing Inc. to halt production of the automaker's popular Chevrolet Malibu.[19] Despite being stuck in the middle of the UAW's 7-week strike at American Axle & Manufacturing Inc., General Motors Corp. has stayed away from the bargaining table.[8]

A General Motors executive said he does not foresee problems obtaining parts to keep producing the hot-selling Chevrolet Malibu amid a strike at American Axle & Manufacturing.[35]

The strike has affected more than 30 plants at General Motors, American Axle'''s biggest customer.[47]

The American Axle strike and subsequent shortage of parts has triggered the shutdown of numerous GM assembly operations across North America, including the Oshawa truck plant.[25] Output at the truck plant will resume Monday for three weeks because GM is directing parts from an American Axle factory in Mexico to three GM truck operations instead of plants that assemble sport utility vehicles.[25]

Steve Kegerreis, assistant plant manager, said the starting and ending times of shifts might change over the next two weeks. The American Axle strike started Feb. 26, and the automaker initially was able to move parts around to keep its SUV plants operating. The Janesville plant was affected first during the week of March 10, when both shifts worked half-shift.[30] Operations of the plant have been threatened for weeks because it uses a brake spindle produced by American Axle, whose plants have been shut down by a UAW strike since Feb. 26.[36]

The striking 3,650 UAW workers at five of American Axle's U.S. plants that GM once owned has created a unique problem.[24] More than 700 employees walked off the job back in late February at the plant, joining thousands more at other American Axle plants in Michigan and New York. After picketing alone for weeks, the striking workers appealed to the community for support and they got it.[48] The company has already had to idle assembly lines at about 30 plants because of the 3,650 American Axle workers who struck almost two months ago in a dispute over wages and benefits.[40] American Axle has said it must cut wages and benefits of hourly paid workers at the plants to compete against rivals that have labor costs about one-third as high.[2]

Now a turning point would be unlikely until selection of GM pickups and SUVs narrows, as supplies on hand fall below 80 days, which analysts expect in mid-May. "They may eventually get forced into bailing out the workers at American Axle," said David Healy, an analyst with Burnham Securities Inc. Andersson said it's too early to tell if the automaker will step in with financial help, and whether American Axle could reduce prices for GM if the supplier can cut its labor costs.[8]

The union called off a planned rally in support of striking workers at American Axle, saying it was making progress in talks with the auto supplier.[49] The uncertainty of Lordstown operations has delayed labor contract talks. LORDSTOWN ''' A union official said he expects the General Motors''' Lordstown plant to have enough parts to continue running all of this week. Ben Strickland, shop chairman for United Auto Workers Local 1112, added that he expects the plant will continue running beyond that as well.[36] Though GM and the United Auto Workers union came to a national agreement not long ago, local contract disputes continue at several plants across the county.[48]

If no agreements have been reached in five days, the union could send another letter giving a five-day notice before a strike. UAW Local 730 Chairman Steve Rop wouldn't comment Tuesday, but in a notice on the local's website, he said the union and GM still were bargaining about local grievances as well as tool and die operations at the plant. The UAW agreed on a national contract with GM last fall, but local unions also negotiate their own agreements on issues such as overtime and plant operations.[10] Members of UAW Local 602 who work at GM's Lansing Delta Township plant near Lansing, Michigan, walked off the job just after 10 a.m. ET after the automaker and local union leaders failed to agree on work rules and other issues.[5] "We are disappointed that UAW Local 602 has taken strike action at the Lansing Delta Township plant," GM spokesman Dan Flores said.[5] The Delta Township plant, along with a second GM factory in Warren, also is threatening to strike GM over local contract issues.[20]

GM said workers at the Delta Township plant near Lansing, Mich., which makes the company'''s crossovers, is partially shut down due to a strike at nearby supplier Alliance Interiors.[50] GM's Lansing Delta Township plant could be affected by a strike by members of the UAW at Lansing-based supplier Alliance Interiors.[49]

The UAW's strike deadline for the Delta Township plant expires at 10 a.m. Thursday. The UAW is trying to forge its first-ever collective bargaining agreement with Alliance.[20]

GM also faces another possible strike by a UAW local unit at 10 a.m. ET Friday if the company and local leaders at a Warren, Michigan, transmission plant fail to reach an agreement.[40] The strike has closed all or part of 29 GM plants plus Hummer sport utility vehicle production done by AM General under an agreement with GM.[50] The first quarter "was a terrible quarter for the auto industry by any measure," Mr. Tyerman said in a note to clients. "The combination of the strike and weak consumer demand pushed auto production to the lowest level in our historical database," he wrote. He's now forecasting share profit of $6.40 (U.S.) this year for Magna, down from an earlier forecast of $6.76. The strike has led to a production cutback of 100,000 vehicles at GM's plants, Citigroup Global Markets Inc. analyst Itay Michaeli said in a report this week. Mr. Michaeli cut his profit forecast to $6.85 a share from a previous level of $7.02.[4] Cutting one link in the supply chain almost immediately causes a shutdown at a vehicle assembly plant, which then cascades through the sector. Magna, for example, has shut parts of a plant in St. Thomas, Ont., that assembles frames for GM's large pickups and SUVs. The parts maker has also laid off some workers at a plant in Syracuse, N.Y., that puts together four-wheel-drive components for those same vehicles. Analysts who follow Magna have reduced their forecasts for first-quarter profit because of the strike. Martinrea has laid off most of the workers at its frame-making plant in Kitchener, Ont. David Tyerman, who covers Magna and other parts makers for Scotia Capital, cut his profit forecasts yesterday for Magna, Martinrea, Linamar Corp., Wescast Industries Inc. and Exco Technologies Ltd.[4]

The plant also builds the Buick Lacrosse sedan. Most of the two dozen GM factories affected by a parts shortage created by the strike, now entering its seventh week, produce slow-selling large trucks and SUVs or parts for those vehicles.[6] Osage has had about two dozen orders that call for GM chassis. Those customers haven't yet given up on GM, but he expects most customers will run out of patience in about a month. Others who who don't directly work with or supply the Wentzville plant also are feeling the pain. That includes Pat Capstick, who lives in Wentz'ville but drives transport trucks for Kansas City-based Jack Cooper Transport Co. The company ships vehicles from GM's plant in Fort Wayne, Ind., another facility shut down by the parts shortage.[45]

The vehicles are produced in GM's plants in Orion, Michigan, and in Fairfax, Kansas. Dealers have slim 40-day inventories of those vehicles. Such a halt in production--in theory--would leave GM little choice but to broker a deal with the UAW so it could avoid a disruptive parts shortage. Andersson said he has 'a good plan for handling the potential shortage.' He declined to elaborate. Asked if he has been receiving parts from another supplier, he did not answer.[24]

The UAW and GM signed a new labor contract last year that covered wages, benefits and investments in U.S. plants. GM still has to work out local deals on issues such as work rules and seniority at individual plants.[13] "We should be able to have an agreement.'' Local plants negotiate their own operating agreements separate from the national contract, which was settled last year. The local contract deals with issues such as overtime and work rules. Flores said the company was disappointed workers left their jobs. "We remain focused on reaching an agreement as soon as possible," he said.[14] Rademacher said workers at the Delta plant have been working under a contract put in place in 1999 when GM built the factory. The contract, he said, was intended to give GM flexibility to get the factory running, but was never supposed to be a long-term labor agreement. The UAW planned to get a plant-level contract in place for Delta after last fall's national negotiations, he said. This work force deserves respect," he said.[9] For several months, GM and Local 602 leaders have been in talks to reach an agreement on contract details for the plant to go along with the national agreement reached between the automaker and the UAW last September.[40]

"Since we've been out here, we haven't really had a local agreement," the 32-year GM quality control worker said of the Delta Township plant.[14] In addition to Delta Township, workers at metal fabricating plant near Grand Rapids and a transmission plant in Warren, Mich., also have threatened to strike. Local unions in Arlington, Texas; Parma, Ohio; and Flint also had threatened strikes but since have withdrawn those threats.[14]

DELTA TOWNSHIP, Mich. -Hundreds of workers on Thursday streamed out of a General Motors Corp. assembly plant that makes crossover vehicles, threatening the automaker's ability to build one of its most popular products.[14] DETROIT, Michigan (AFP) — Production of General Motors Corp.' s popular crossover sports utility vehicles ground to a stop Thursday after workers at one of the automaker's Michigan factories went on strike.[39] A Flint United Auto Workers local threatening to strike General Motors Corp. has lifted the threat, according to a notice posted on the union's Web site.[11] About 3,650 members of the United Auto Workers union at five facilities in New York and Michigan went on strike Feb. 26 after the auto parts maker proposed drastic cuts in hourly wages and benefits.[33] About 3,600 UAW members went on strike Feb. 26 at five plants in Michigan and New York in a dispute over wage and benefit cuts the company is seeking.[27]

The UAW launched a strike against American Axle more than seven weeks ago, in the face of the supplier's demands for steep wage and benefit cuts that American Axle says it needs to compete with other U.S. suppliers.[19] Poggiali said UAW President Ron Gettelfinger and regional leadership made the call to walk off the line at Alliance Tuesday evening. He said he didn't know if that decision had anything to do with the American Axle strike. "It is clear that (workers) in the entire supplier network (are) under fire," he said. "But there are different issues between this small supplier and the situation in Detroit."[20]

General Motors will not be running out of axles for the popular Chevrolet Malibu and Pontiac G6 sedans as a result of the ongoing strike at supplier American Axle, according to Bo Andersson, the automaker's vice president for purchasing and supply chain, Automotive News reports.[34] Nothing worse than losing your momentum, and that'''s been a big worry for the folks at General Motors, as they watch the strike at American Axle approach the end of its second month.[51]

Detroit-based American Axle makes axles, stabilizer bars, drive shafts and other parts mainly for General Motors Corp.' s pickup trucks and large sport utility vehicles.[27]

For weeks, the uncertainty of when production would resume kept Capstick from driving trucks for another company. He didn't want to risk losing the good-paying job of shipping vehicles when the American Axle strike ended.[45] GM had been widely expected to run out of a rear suspension part manufactured by American Axle, which was thought to be necessary to keep production going by next week.[34]

The strike has already had a sill-over impact, notably for GM, Axle'''s biggest customer. It has so far had to shutter all or part of 30 of its own factories, and there was growing concern that the automaker might be forced to halt production of its new and well-received 2008 Chevrolet Malibu sedan.[51] At a meeting with reporters in Detroit, Bo Andersson, GM's group vice president of global purchasing and supply chain, was asked when GM would run out of parts for the Malibu. Andersson's reply was "never," but he would not elaborate on how GM would ensure the flow of parts. There had been speculation that if the strike, now in its eighth week, began to disrupt production of the popular Malibu, GM might pressure its supplier to reach a settlement.[35] The plant produces the Buick Enclave, GMC Acadia and Saturn Outlook, products that have sold well for GM. Production at the plant was slowed Wednesday due to a strike at a supplier of interior components.[13] The automaker has also temporarily resumed pickup production in Ft. Wayne, Ind., and plans to do the same at a pickup plant in Oshawa, Ontario, on Monday. As many as 30 GM plants have shut down or seen production cuts during the course of this strike.[19]

The most recent negotiation session was last week. Earlier this month, locals at five other GM plants threatened to file strike notices over talks that had bogged down.[36] Thursdays strike at the crossover factory near Lansing was the first one over local issues since two parts plants went out in Flint a decade ago, GM spokesman Dan Flores said.[42] Kevin Riddell, powertrain forecasting manager for J.D. Power and Associates, said the Warren factory supplies transmissions to nearly all GM cars. Another plant in Windsor, Ontario, could make up some of the supply, but GM would feel the effects of a strike rather quickly. "For the Malibu, theyve really been going gangbusters trying to make parts for it," Riddell said.[42]

A UAW local at a GM transmission plant in Warren, Mich., has a strike deadline set for Friday morning.[13] The Chevrolet Impala leads with 71,750 sales. UAW Local 1112 said in a flier to its 2,400 members that workers will be informed immediately in case of a parts disruption. Another 1,000 union members work at the Metal Center stamping and fabricating plant next to the assembly plant.[50] "We've been bargaining since May 2007 and haven't come to any kind of agreement," said Dean Poggiali, president of UAW Local 724, which represents about 80 to 90 workers at the plant.[20]

Workers in Three Rivers were joined by more than 300 other workers and community members in a rally Thursday. They drove or marched down from the UAW hall to the American Axle plant.[52] Hundreds of workers, union officials and residents picketed outside the American Axle plant Thursday.[46] The United Auto Workers union called off a rally in support of striking workers at American Axle. The rally was scheduled to be held this Friday in downtown Detroit.[37] Although the American Axle strike has led to layoffs in Oshawa, two busloads of retirees from Canadian Auto Workers local 222 will travel to a picket line in Tonawanda, N.Y., tomorrow, local 222 president Chris Buckley said yesterday.[4] Workers at Alliance Interiors in Lansing, who are represented by United Auto Workers Local 724, went on strike after failing to reach an agreement on a first contract.[37] The strike is the first against GM over a local contract agreement since a lengthy walkout in Flint back in 1998, said GM spokesman Dan Flores.[14]

Hastings said it is more than coincidence that the union would go after GMs popular vehicles with local strikes, especially since it was able to settle the complex national contract with only a short, token work stoppage.[42]

Around 2,300 union employees walked off the job at one of GMs own plants in Lansing, Mich., where the automaker rolls out its hot-selling line of crossover utility vehicles, according to General Motors spokesman Dan Flores. "Theyll need to figure this all out soon because these are key products in replacing these SUVs that have really fallen into an abyss."[40] General Motors Corp.' s metal stamping plant in West Mifflin -- slated for closing now that a deal to buy it fell through last week -- is likely to remain open longer than expected, into the first quarter of 2009, a union official said Tuesday.[26] LANSING, Mich., April 17 (UPI) -- Workers have walked out at the General Motors Corp. plant near Lansing, Mich., after contract talks broke down, officials said.[43] The strike also has forced at least the partial idling of 30 General Motors Corp (GM.N: Quote, Profile, Research ) plants in North America due to parts shortages.[16] The strike has caused parts shortages that have closed or curtailed work at 29 General Motors Corp. factories, affecting about 39,000 hourly employees. The state's labor force continued its downward trend in early 2008.[18]

Workers hired by General Motors Corp. and Ford Motor Co. for temporary summer help will now make about $14 an hour -- not $18 -- as part of the automakers' new labor deals with the United Auto Workers.[3]

A GM divisional manager delivered the news during a meeting with the plant employees yesterday, said Rick Vargesko, president of the United Auto Workers Local 544, which represents about 350 employees at the plant.[26] Company spokesman Dan Flores said United Auto Workers Local 730, which represents the GM stamping plant in Wyoming, sent the letter Friday.[10]

Salaried and hourly employees are generally allowed one referral each. "It's a way that GM and the UAW can work together to allow people to go on vacation but meet the production needs of the business," GM spokesman Dan Flores said. Traditionally, under UAW agreements with the automakers, those fill-in workers have earned 70 percent of the average assembly line hourly wage, which amounted to about $18.30.[3] Summer help will not be eligible for full-time jobs. GM worker Troy Miller, who has seen summer help come and go during a decade at the automaker's service parts operation in Columbus, Ohio, said the workers are at a disadvantage because they're not represented by the UAW. They often work longer hours and with less breaks than full-timers, he said. "I don't think it's fair they make less," he said. "They work 'em hard."[3] At GM, the second tier of workers comprises new hires assigned to jobs that aren't considered a core part of building cars.[3]

Union members had planned to rally on Friday in Downtown Detroit to show support for American Axle workers who walked of the job in February.[47] Last week, American Axle turned down a proposal from the union. The company last weekend countered with a new proposal, which the Detroit Free Press said included separate wage and benefit structures for its forging and axle operations.[35]

THREE RIVERS '' Cars and trucks honked repeatedly this afternoon at the large number union members out in front of the American Axle plant.[15] Some of the idled plants have returned to work using parts made at American Axle facilities in Mexico.[27]

The state unemployment rate remained at 7.2 percent in March for the second month in a row, due in part to the American Axle strike.[49] The 3,650 UAW members at American Axle went on strike after talks on a new deal collapsed.[30] The UAW's strike against American Axle began Feb. 26, involving about 3,650 UAW members, including roughly 580 in the Buffalo Niagara region.[35] Progress in the American Axle negotiations came shortly after the UAW threatened strikes at the crossover factory and several other locations.[27] The workers also used the gathering to thank the community, and held a barbeque for anyone who showed up. A spokesperson for American Axle says that negotiations with the UAW are making progress and are still ongoing, but despite the progress, both sides say that a deal is still a long way off.[48] American Axle Spokeswoman Renee Rogers said today there has been progress in talks with striking workers, but an agreement is not near.[29] "Progress is being made and talks continue. Talk of a tentative agreement is premature at this time," said Renee Rogers, an American Axle spokeswoman.[33]

Progress is reported in the American Axle talks. GM shakes up its sales operations.[49]

GM has only a 40-day inventory of the Buick Enclave, compared to an inventory of more than 150 days on some large trucks and SUVs when the American Axle strike began, according to Ward's AutoInfoBank.[14] Most of the trucks and cars affected by the American Axle strike are slower-selling models with above-normal inventory levels.[12]

The complex'''s 3,400 hourly workers have continued to produce the small cars on a day-to-day basis under the threat of a disruption in brake parts in case of a shortage of a steel spindle made by strike-bound American Axle.[50] A striking worker and officials with the union and American Axle confirmed Wednesday that the rally was cancelled.[37] The union has not commented publicly on the walkout but there has been speculation it could be trying to pressure GM into helping resolve the American Axle dispute.[39] The walkout has affected production at nearly 30 GM factories, and GM accounts for 80 percent of American Axle's business.[27] GM is American Axle's largest customer, accounting for nearly 80% of the Detroit supplier's sales.[19] While the rally was taking place, Erv Heidbrink, president of UAW Local 2093 in Three Rivers, and bargaining chair Dave Morris, were in Detroit negotiating with American Axle officials.[53] THREE RIVERS - More than 300 people joined a mass rally Thursday outside American Axle in support of UAW Local 2093 members.[53]

The stalemate between American Axle & Manufacturing Holdings Inc. and the UAW appears to be over with significant progress occurring at the bargaining table, an auto industry publication reported today.[33] The UAW has been considering a new contract offer from American Axle since Saturday.[28] Negotiators for American Axle and the UAW have been meeting daily since talks resumed a week ago.[16] American Axle and the UAW started negotiations in earnest again last week after the president of the UAW and the company's chairman and chief executive met face-to-face.[32] Last week UAW President Ron Gettelfinger and American Axle CEO Richard E. Dauch met. Following that, top representatives from both sides began meeting on a regular basis.[17]

" They could reach an agreement by this weekend. Both sides have finally come to their senses." Renee Rogers, a spokeswoman for American Axle, said she knows who Automotive News' source is. "That's based on information (the writer) got from someone who is not part of the negotiations," Rogers said. She said negotiations are ongoing.[7] Asked if GM will develop new axle sources from American Axle rivals, Andersson said: 'What we learn every day is to have alternatives.[24] Nationally, GM has had to shut 29 facilities due to the lack of driveline components supplied by Detroit-based American Axle for GM pickups, sport utility vehicles and full-size vans.[45] While it looks like another strong GM product, the Chevrolet HHR, has also been hit by the American Axle dispute, the automaker will be able to keep Malibu up-and-running.[51]

Andersson declined to disclose details about how GM will be able to keep up production of the Malibu. "We have a good plan," he said. The news about Malibu production comes as the automaker cut production at a factory in Mexico that makes the Chevrolet HHR, shifting those parts to U.S. plants, said a person familiar with plant activity.[19] Because of a parts shortage production at GM's Lansing Delta Township plant has been curtailed, according to GM officials.[37] GM spokesman Dan Flores said the management at GM's Delta Township assembly plant is continuing to talk with the UAW representatives. "I can confirm we are (still) talking with the UAW. I just can't comment on the issues," he said.[39] According to GMs website, some 3,300 hourly workers were employed at the Delta Township plant at the end of April 2007. The facility makes the Buick Enclave, GMC Acadia and Saturn Outlook crossover vehicles that GM says are among its best-selling models.[40] Shortly after 10 a.m. Thursday, hundreds of workers streamed out of the Delta Township plant and began walking picket lines.[42]

United Auto Workers have not said what contract issues are on the table at the Delta Township facility, The Detroit Press reported.[43]

"I don't want to be on strike," said worker Duane McClung. "And it's really not quite clear why we're striking." Worker Dean Betcher said he believes the union did its best to resolve issues with GM. But, he said, he would have preferred the UAW waited to see if workers were laid off instead. "I'd prefer that to a strike," he said.[9] Nearly 30 plants and 40,000 GM workers have been idled because of the strike.[37] As the strike continues, another is just beginning at the GM plant in Delta Twp., which is near Lansing.[48] The action brings to three the number of GM plants that face a strike threat.[10]

Southfield (WWJ) -- One of General Motors most important plants could be threatened by a new strike at a Lansing-based auto supplier.[37] Production is scheduled to begin in next year's fourth quarter. General Motors Corp. may cut production of large sport-utility vehicles and pickups by 23 percent this year amid a supplier strike and dwindling demand, analysts said.[11] LORDSTOWN ''' Production at the General Motors Corp. Lordstown Complex is expected to continue today, avoiding thus far any serious effect from a supplier strike, a spokesman said Wednesday.[50]

A UAW local in Flint has suspended a threat to strike General Motors Corp. Thursday.[1]

"We are disappointed that UAW Local 602 has taken strike action," GM spokesman Dan Flores said.[9]

GM's Detroit-Hamtramck plant, which builds the Buick Lucerne and Cadillac DTS sedans, was idled March 31. Another important car factory, in Lordstown, Ohio, could go down in a matter of days or weeks, according to local UAW officials. That factory builds the Chevrolet Cobalt and Pontiac G5 small cars.[6] Workers at the plant learned Wednesday that local production of full-size sport utility vehicles will be cut in half. For next week, first-shift employees will work their normal shifts and second-shift workers will be laid off.[30] Demaagd's stock of GMC Envoys, a popular seller at the dealership, is edging down to 30 to 45 days' supply. The strike would have to last another month before it eats into Peckins' sales, illustrating GM's inventory cushion for its profitable trucks and SUVs, many of which are seeing sales declines because of rising gas prices. Lehman Brothers analyst Brian Johnson said in a note to investors this week that lost truck production during the strike, which he estimated at 87,000 during the first quarter, represents just a fraction of the decline in demand. Johnson estimates that GM will cut production of its large pickups and SUVs by 23% or 346,000 to 1.18 million vehicles.[8] So far, the strike has mainly hit production of GMs trucks and sport utility vehicles, which were selling slowly anyway.[42]

GM has a large stockpile of the trucks and SUVs whose production has been most heavily impacted by the strike.[35]

The strike at the Detroit-based supplier already has caused GM to stop SUV production in the United States.[24]

GM sent another signal Tuesday night that it aims to stay on the sidelines as long as possible by indicating that Malibu production could continue indefinitely. Analysts say GM wants to stay out of negotiations -- which have shown progress in recent days -- because it has its own financial problems and stands to gain from lower costs at its supplier. As dealers draw down on their supplies of trucks, analysts say GM could be forced into negotiations. "At some point in time, if it's not settled and General Motors is going to get hurt. they're going to have to enter the room and they may have to enter the room with their checkbook," said restructuring expert Van Conway of Birmingham consulting firm Conway, Mackenzie & Dunleavy.[8] As the work stoppage continues for an eighth week, the agreement -- if confirmed -- would be the first sign of solid progress in a dispute that has brought General Motors Corp.' s U.S. production of SUVs to a halt.[33]

General Motors Corp. on Monday announced plans to build a $200 million plant in Brazil -- a project that will take 19 months from start to finish.[11] General Motors Corp. said it will open a $200-million engine and components plant in Brazil by the fourth quarter of next year.[1] Initially, Darren McClain enjoyed the free time that came with the temporary shutdown of General Motors Corp.' s plant in Wentzville.[45]

The strike shut down production at the H2 plant in Mishawaka because of a parts shortage. [52] The strike could cripple production at the plant and have serious implications for the Detroit automaker.[40]

The plant went to the one-shift-on, one-shift-off strategy for the weeks of March 17 and 24. For the last three weeks, both shifts have been working on a slower-moving production line, a plan the automaker announced months ago to trim production from 52 jobs per hour to 44.[30] Chrysler LLC, struggling to pare back production to meet declining demand for its cars and trucks, doesn't plan to hire temps this summer, Chrysler spokesman Ed Saenz said Wednesday. It will be the automaker's third straight year of hiring few to no summer temps. The pay cut is one more sign that Detroit's automakers aren't the haven of high wages they once were. "It'd be nice to have those jobs be higher paying.[3]

According to the source, the two sides are making progress on three fronts: Wages, health care legacy costs, and job classifications. Dauch has been seeking fewer classifications to win more flexibility for his U.S. plants. He has also been pushing for lower wage rates, which the UAW has resisted.[17] UAW workers there walked off the job Thursday morning because of demands that aren't being met locally with the plant.[48]

Workers have been on strike at all five of its plants, including the one in Three Rivers, for 52 days.[52] If the plant were idled by the Alliance strike, workers would receive layoff pay. Now, they'll get much less in strike compensation.[9] Tim Berry, 50, of Holt, one of the 2-year-old plants 3,400 hourly workers, said the strike was justified.[42]

According to GM's website, some 3,300 hourly workers were employed at the plant at the end of April 2007.[5]

The continued operations at the plant, which stamps about 200 metal parts for a variety of GM cars and trucks, will depend upon the volume of work available.[26] Andersson has proved unusually adroit in overcoming natural and man-made disasters to get parts to GM's assembly plants. He was able to get parts from an earthquake-struck part of Japan; from Thailand following a coup; from the southern United States during flooding and from Mexico after terrorist-caused fuel line explosions last year.[24] The plant was scheduled to close last year, but GM kept it open while negotiations continued.[26]

The Delta plant is critical for GM because it builds the automaker's popular crossovers, the GMC Acadia, Saturn Outlook and Buick Enclave.[9] Just across the street from the GM plant is Lear Corp.' s seating system plant. That supplier shut soon after GM's plant did. An answering machine at the facility instructs its 189 employees to call daily for updates. It took 10 days after the shutdown for the pipeline to dry up at Linn, Mo. -based Osage Industries, said John Kehoe, the company's president.[45] The spindle goes into brake components that flow through Delphi Corp. and then Automodular, a supplier with a factory near the GM plant in Lordstown.[50]

In Wentzville, about 2,400 people work at the GM plant assembling the GMC Savana and Chevrolet Express full-size vans.[45]

Strickland said that negotiations on a local labor contract in Lordstown have been put on hold while company and union officials work on keeping the plant operating.[36] While a national labor contract was settled last year, most local negotiations have not been completed. The national contract covers pay and benefits, while local contracts cover plant-specific issues, such as work rules.[36]

Together, the strikes over local contract issues could severely cut into GMs profits if it cant supply dealers with the only models that are selling in an uncertain economy.[42] UAW officials have not specified the local contract issues in dispute. In addition to the overarching UAW contract reached last fall with Detroit's Big Three automakers, most UAW locals are still negotiating plant-level deals.[9] Despite the contract reached last fall with the Big Three automakers, most UAW locals are still negotiating on the local level, the newspaper said. Doug Rademacher, president of UAW Local 602, told the newspaper talks have broken off and he didn't know when they would restart.[43]

The purchase closed after two UAW locals approved contracts with the Zeledyne, which lowered compensation for workers whose employment stemmed from Ford Motor Co.[1]

"Since weve been out here, we havent really had a local agreement," the 32-year GM quality control worker said.[42] The strike also shut a Hummer facility owned by GM but operated by AM General LLC. Until the strike is resolved, workers and businesses have to sit and wait.[45] About 3600 United Auto Workers have been on strike for nearly two months. They say the company wants to cut wages and benefits.[54] While on layoff, GM employees, who are members of the Canadian Auto Workers, receive about 65 per cent of gross pay through a combination of federal employment insurance and company supplementary unemployment benefits.[25]

The United Auto Workers canceled a planned Friday rally to support the strikers, also citing progress in the talks.[27] United Auto Workers members walked off the job just after a deadline passed at 10 a.m.[14]

"Michigan manufacturing jobs fell in March, reflecting the initial layoff activity caused by a major strike in the auto sector," said Rick Waclawek, director of the department's Bureau of Labor Market Information and Strategic Initiatives.[18] Inappropriate? Alert us. People are just looking for someone to blame for all this. Could someone here please tell me specifically how Gov. Granholm or her policies are responsible for the majority of the jobs leaving the state? And keep in mind, the majority of those jobs are auto manufacturing related.[44]

Local suppliers and other businesses dependent on the plant's production also have been hurt by the shutdown. They are all hoping that the source of the shortage may be fixed soon. [45] "You do projects and start fixing things up and then you're like, 'Where's all the money going?'" McClain and his co-workers have been out of work since a labor dispute at a key supplier caused a parts shortage. That forced the Wentzville plant to stop its assembly line on March 6 and shut down the rest of the operations on March 10.[45] Local 1112 had said the Lordstown plant could be shut down because of a parts shortage two weeks ago.[36]

Flores declined to comment whether GM would seek another buyer to run the plant as a metal stamping facility. A private equity company, Allegheny Holdings LLC, last week withdrew its bid to buy the plant because it said its lender would not renew a financing package that expired in March, and it could not obtain other financing in a short period of time.[26] "The plant will remain a GM facility for an unspecified period of time until work (at the plant) is either moved or it reaches the end of its life cycle," GM spokesman Daniel Flores said in a statement.[26] GM would not speculate on what might happen to the property when the plant closes, Flores said.[26]

Andersson said that GM has a plan in place for handling a potential shortage. While he did not answer when asked if he had another supplier lined up, he was unequivocal in his belief that the automaker will never run out of parts for the cars, even if the strike continues to drag on. Sounds like someone has an ace up his sleeve. [34] '''We have a good plan,''' Andersson hinted, to keep parts coming for the Chevy Malibu, which was voted North American Car of the Year, last January, and which has been one of GM'''s strongest entries in the passenger car segment in recent years.[51] The complex on several occasions has been believed to be in danger of being idled by lack of the part. Each alarm has proved premature ''' good news for GM because the Cobalt is its second-best selling car with 48,024 sales through the first three months of the year.[50] GM may lose about 760 of the vehicles during each day of the Michigan walkout, based on the production average for the first three months of the year, according to Bloomberg calculations. The Acadia and Outlook arrived in showrooms in late 2006, and combined sales have more than doubled this year to 38,937.[12] Further declines in sales and production of the highly profitable vehicles may damage GM's North American turnaround as it seeks to recover from a $39 billion loss in 2007. GM is profitable outside its home turf.[11]

The question of Malibu production appears to be resolved. Bo Andersson, GM's group vice president for global purchasing and supply chain, said this week that GM won't run out of parts for the popular Malibu -- avoiding what analysts viewed as a trigger for GM to dive into these talks.[8]

American Axle wants to cut wages in order to become competitive with other parts makers. [28] Detroit-based American Axle said it needed the cuts to become competitive with other parts makers.[33]

American Axle says it needs to cut costs to stay competitive with other UAW-represented parts suppliers.[52]

Eighty members of the Machinists union at American Axle's forge in the Town of Tonawanda are honoring the picket line.[35] Representatives from American Axle and the union could not be reached immediately for comment on the report.[2]

American Axle spokeswoman Renee Rogers said Wednesday negotiations are ongoing and "progress is being made."[37] NBC25 has learned there has been some progress in bargaining with American Axle.[47]

American Axle shares rose 26 cents, or 1.2 percent, to $22.14, in Thursday trading.[38] American Axle spokeswoman Renee Rogers said negotiations were ongoing Wednesday evening and were expected to continue Thursday.[28] 'Negotiations are continuing, progressing,' said Renee Rogers, American Axle spokeswoman.[17] "Negotiations are ongoing," said Renee Rogers, American Axle spokesperson, in a statement.[52]

The Cobalt relies on a brake spindle produced by American Axle, officials said.[21] A picket line stretched for nearly a quarter of a mile outside American Axle in Three Rivers Thursday as a mass rally was held for two hours.[53]

The walkout adds to GM's labor-related struggles after it reached a national agreement with the UAW following a two-day strike in September. [12] We settled most of our issues. There's no sense going out on strike," he said. The UAW had warned GM earlier this month that there could be a strike here and at a handful of other facilities across the county.[41]

Even amid the tension and questions, workers began to rally a show of support for the UAW. Some drivers honked at leaving workers and shouted encouragement. Other began to hand out "UAW on Strike" picket signs.[9] Conn-Selmer workers from Elkhart -- on strike for two years now -- came out to support the workers in Three Rivers. '''The difference between us and them is we didn't have much of the city behind us," said Conn-Selmer worker Stacy Curtis. "This is wonderful that they've got a lot of backing here.''' '''It's about the whole community supporting these people," said Conn-Selmer worker Carl O'Haver. "Even the non-union people who work at the banks, the small businesses, all these people do business with them.'''[52] The strike by 2,300 workers will pinch supplies of the Buick Enclave, GMC Acadia and Saturn Outlook. Rising demand for the "crossovers," which blend features of sedans and trucks, have helped limit the money-losing automaker to an 11 per cent decline in U.S. sales this year.[12]

Local negotiations were under way late Thursday in Warren, and a top Local 909 official said workers will report Friday morning but are prepared to strike.[42]

Carrying signs that read "UAW On Strike, Unfair Labor Practices," the throng of 250 or so UAW Local 2093 members easily drew attention.[15] Because of the progress, the UAW called off a large protest rally scheduled for downtown Detroit, Wendy Thompson, the retired ex-president of UAW Local 235 in Detroit, told Automotive News.[17] The walkout began Feb. 26. Busloads of people from Western New York, including UAW members, members of other unions and their supporters, were planning to travel to Detroit to attend the rally.[29]

Workers hired by GM and Ford for temporary summer help will now make about $14 an hour not $18 The Detroit News reports.[49] Associated Press - April 15, 2008 11:55 AM ET KEARNEY, Neb. (AP) - Thanks to new orders, Eaton Corp. has called back all the workers it laid off last month at its Kearney plant and all but[23] The Oshawa truck plant, which employs more than 2,000 workers on two shifts, has been idle for seven weeks.[25]

With the reopening of a truck plant and accompanying engine factories, the total is now at 27 factories affected by the strike.[19] The strike hasn't hurt GM much because pickup trucks and SUVs haven't been selling in an uncertain economy with high gasoline prices.[27]

At the end of March, dealers had, on average, a 37-day supply of the Malibu on hand, which is low compared with the industry average of 64 days and the vehicles for which production has been stopped or reduced because of the strike, according to data from Automotive News.[19] Prior to the strike, the company proposed taking the production wage from about $27 an hour to $14.50 an hour in exchange for a buy-down, or cash payment.[30]

A state House committee has approved an energy bill that "paves the way to building a power plant in Bay County," says State Rep. Jeff Mayes. Consumers Energy wants to see changes in Michigan law before it commits to building a $2.3 billion coal-fired plant at its Karn-Weadock generating complex in Hampton Township. Under current law, Consumers argues that its industrial and business customer base is too uncertain to move forward with the giant project. Critics say Consumers and DTE Energy want changes giving them a monopoly on energy production.[28] Production at the nearby DMAX truck engine plant, also in Moraine, has been affected as well. Contact this reporter at (937) 225-2390 or [email protected].[7]

Flores said GM wants the dispute settled as quickly as possible because a lot of facilities are affected with a combination of total or partial reduction in production, including a number that assemble trucks. He said it is encouraging that both sides are talking.[21]

Help from GM could be in the form of more flexible pricing or cash contributions toward attrition packages, said Erich Merkle, vice president of forecasting at Grand Rapids-based consulting firm IRN Inc. Morgan Stanley auto analyst Jonathan Steinmetz wrote in a note to investors this month that there could be a combination of a financial contribution from GM, business guarantees and price cuts. It would be better for GM to gain cost savings without having to make a financial contribution, and General Motors has its own financial troubles. [8] General Motors of Canada Ltd. confirmed yesterday that temporary layoff notices have been sent to about 1,000 workers on the third shift at the Oshawa car complex, effective Monday.[25]

To make wage cuts palatable to employees, the two sides have been discussing a round of buyouts and buydowns for existing UAW workers.[17] The UAW agreed to allow the companies to implement a two-tier wage system in the factories, with lower-paid workers making as little as $14, or about half the current hourly wage.[3]

Those workers will earn about $14 an hour instead of $18; Chrysler won't hire any fill-ins. Taking a part-time summer job with one of Detroit's Big Three automakers has long meant good, quick money for thousands of workers. [3]

GM isn'''t talking about where it buys parts from. Strickland said he has asked UAW officials in Detroit to try to determine the source of parts needed in Lordstown.[36] Yesterday the UAW said it postponed a labour rally set for Friday because progress was being made in the contract talks in Detroit.[25]

GM spokesman Dan Flores said talks between the two sides broke off for the time being.[13] "We remain focused on reaching an agreement as soon as possible," GM's Flores said.[12]

We're hopeful we can reach an agreement, but any discussions of a tentative agreement are premature." Local union leaders say all they can do is wait and hold on.[52] No, not China, Mexico, GM is shutting down it's Mexican Malibu and Cobalt assembly lines and shipping their parts to U.S. assembly lines to keep them running. It's all for show and shows how this is a coordinated union busting tactic between two different corporations and THAT should be illegal.[51]

Some 30 GM assembly and parts operations have either been idled or slowed down and numerous suppliers have suffered.[24]

I don't see anything changing from where I sit," said Bo Andersson, GM's group vice president of global purchasing and supply chain, during a roundtable with reporters after a speech to the Asian Pacific American Chamber of Commerce at the MGM Grand Detroit.[19] The vehicles have been a bright spot for GM in a brutal U.S. auto market, generating healthy sales and strong revenues.[20] BERLIN -- German automaker Volkswagen AG said Monday it sold 7 percent more vehicles in the first quarter than it had a year earlier to hit a new high, despite the dampening effect on exports of the strong euro. Sales for the January-to-March period increased to 1.572 million vehicles -- its best quarterly sales figure ever, Volkswagen said.[11] According to the Dow Jones news agency, China UnionPay Co. president Rod Xu said on Thursday that some foreign banks have been granted the right to issue. Chinese vehicle exports maintained a growth rate of 88 percent, making annual projected exports more than 1 million this year, according to Zhang Ji, a d. Capital One Financial Corp., the credit and banking company, said its first-quarter profit fell 9 percent on continued pressures on U.S. companies amid t.[40]

"We have been able to produce vehicles in all of our car plants, besides one. [19] What is going on here? I work for a supplier of Lordstown, Hamtramack, Lake Orion, and Fairfax. We were told Hamtramack was out thus shutdown, Lordstown would run out 4-4-08 and shut down and the other two would shutdown by the middle of this month. Did they manage to find some spindles someplace or is someone else suppling them? I am just waiting for the other shoe to fall as these plants close down and I get laid off.[21]

McClain, who has worked 23 years as an auto assembler, also farms part-time. The layoff allowed him to fix a few things on his 40-acre farm outside Bismarck, Mo. But nearly six weeks later, he's ready to return to the assembly line. His unemployment benefits don't make up for lost wages, and the bills from those little projects around the farm are adding up. "You really have to be careful because you have all this time," McClain said. [45] "It does put stress on the company and their cash flows," said Pete Hastings, an auto industry corporate bonds analyst with Morgan Keegan Co. "They have plenty of liquidity and can make it for quite a while, but we dont like to see these strikes get out of hand."[42]

GM shares were down 7 cents, or 0.4 percent, at $19.83 in afternoon New York Stock Exchange trade. This article is copyrighted by International Business Times. [40]

SOURCES

1. Auto headlines | Freep.com | Detroit Free Press
2. American Axle, UAW talks progressing -report | Industries | Consumer Goods & Retail | Reuters
3. GM, Ford to cut pay for summer temps
4. reportonbusiness.com: Supplier strike hobbles sector in Canada
5. UAW on strike at GM crossover plant in Michigan | Reuters
6. General Motors Corp. to cut shift at Oshawa sedan plant
7. American Axle: Talk of a strike end 'premature'
8. GM tries to stay out of talks in Axle strike | Freep.com | Detroit Free Press
9. Lansing GM plant workers stage walkout
10. The Canadian Press: UAW warns of possible strike vs. GM plant near Grand Rapids Mich.
11. Auto briefs
12. GM workers walk out at Michigan SUV plant
13. UAW Local Strikes GM Delta Township, Mich., Plant -GM
14. TheStar.com | Business | GM workers walk off job at assembly plant
15. South Bend Tribune: UAW members in Three Rivers rally for support
16. American Axle, UAW talks progressing | Reuters
17. Source: UAW and American Axle could have a deal by weekend - Crain's Detroit Business
18. State jobless rate stagnant at 7.2%
19. Axle strike won't stall Malibu | Freep.com | Detroit Free Press
20. GM cuts shift at Lansing area plant
21. Production continues at Lordstown - Vindy.com News - Business & Technology - Youngstown, Warren, Columbiana, Ohio
22. Automotive World - Canada: GM to cut shift at Oshawa Impala plant
23. KPTM FOX 42: Omaha News, Sports and Weather; Nebraska News, Sports; kptm.com | Eaton calls back most workers in Hastings, Kearney plants
24. GM doesn't expect axle shortage for sedans - AutoWeek Magazine
25. TheStar.com | Business | GM in Oshawa laying off 1,000
26. GM stamping plant likely to remain open into 2009 - Pittsburgh Tribune-Review
27. American Axle reports progress, but no agreement imminent - NewsFlash - mlive.com
28. UAW calls off American Axle rally - NewsFlash - mlive.com
29. The Buffalo News: Latest Local News: Possible progress in American Axle strike talks
30. GazetteXtra
31. UAW on strike at GM crossover plant in Michigan | U.S. | Reuters
32. American Axle: Progress Made As UAW Talks Continue
33. Movement in UAW, American Axle strike - St. Louis Business Journal:
34. GM says it won't run out of Malibu and G6 axles after all | Automotive News Blog - Wide Open Throttle
35. The Buffalo News: Business: GM says auto parts won't be a problem
36. Official says local GM plant has enough parts - Vindy.com News - Local & Regional News - Youngstown, Warren, Columbiana, Ohio
37. WWJ Newsradio 950 - Key GM Plant Threatened By Supplier Strike
38. American Axle reports progress in contract talks, but says deal is not imminent - International Herald Tribune
39. AFP: GM hit by strike at SUV plant
40. UAW strikes at key GM crossover plant - International Business Times -
41. Talks go on at Flint Truck; strike plan off- mlive.com
42. Local strikes hit GMs hot-selling vehicles and main transmissions plant - International Herald Tribune
43. Workers walk out of Lansing GM plant - UPI.com
44. Michigan March unemployment rate still 7.2 percent -
45. STLtoday - GM's Wentzville workers are ready to go back to work
46. News::UAW Protest in Three Rivers
47. UAW calls off rally in Detroit : News : WEYI NBC25
48. Local News: Hundreds Support American Axle Strikers | strikers, support, american - wwmt.com
49. WWJ Newsradio 950 - Daily Dash - April 17, 2008
50. GM-Lordstown production continues | Tribune Chronicle
51. TCC Blog » Blog Archive » Chevrolet Malibu a Go, Despite Axle Strike
52. Community members rally with striking American Axle workers | WSBT South Bend - Your Local News Leader | Local News
53. The Sturgis Online Community - News
54. WIVB TV: News, Weather, Sports for Buffalo, Niagara Falls, and all of Western New York | Progress in American Axle strike

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