UAW, American Axle reach deal that could end strike

American Axle had been offering a pay cut from $28 to $17 per hour for production workers, with a $90,000 wage "buy down" over three years to help workers make the transition to lower pay.

The person, who asked not to be identified because the deal has not yet been presented to workers, said the agreement reached Friday includes pay of $18.50 per hour and increases the size of the buy down.

The deal is similar to what the UAW agreed to with auto parts maker Delphi Corp. last year, the person said. In that deal, Delphi agreed to pay workers "buy downs" of $105,000 over three years.

Noncore workers, which are those that aren't involved in actual manufacturing, would be paid $14.55 per hour, the person said, while skilled trades workers would get $26 per hour.

American Axle confirmed Friday night that both sides had agreed on a deal, but details weren't released. UAW President Ron Gettelfinger said in a statement Friday night that the American Axle bargaining committee voted to recommend the agreement to members, who would get details starting Sunday.

The agreement, which still must be voted on by about 3,600 workers at five plants in New York and Michigan, includes the closure of American Axle's Detroit and Tonawanda, N.Y., forge operations. It also has a separate but lower pay scale for American Axle's operations in Three Rivers, Mich., the person said.

The deal could end a bitter strike that has dragged on since Feb. 26, crippling production at about 30 General Motors Corp. assembly plants in the U.S., Canada and Mexico, and causing thousands of layoffs at other parts supply companies.

Strike captain Duane Thompson said ratification will depend on whether workers believe they can get a better offer. He thinks a better deal than what's been reported can be negotiated.

"There's a bunch of us who don't like it because we feel we deserve more, or just leave what we have alone. But don't take away from us," said Thompson, a Hamtramck resident.