Tentative agreements with the International UAW reached on May 16, 2008, covering approximately 3,650 American Axle & Manufacturing Holdings, Inc. (AAM) associates at five facilities in Michigan and New York, have been ratified. The new contract reportedly contains large pay cuts and other concessions, and includes the closure of a forge plant in Detroit, MI, and a factory in Tonawanda, NY. Approximately 3,650 UAW members had been on strike since February 26 over wage and benefit issues.
The company expects to have its plants running production this week. The agreements should allow AAM’s largest customer, General Motors Corp., to open 20 plants that have shut or partially closed because of parts shortages.
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