American Axle Strike Closes GM Plant

From United Press International

DETROIT — General Motors Corp. planned to send home workers at a truck plant Thursday in response to a strike at American Axle and Manufacturing Holdings Inc.

Five American Axle factories closed Tuesday as 3,600 workers walked away from their jobs.

General Motors has a three- or four-month supply of trucks but cannot keep production lines busy without new parts, The Detroit News reported.

"It’s likely we will see more strikes because the union needs to flex its muscles," John Henke, president of Planning Perspectives Inc., told the paper.

Unions need to show strength in the wake of cutbacks in wages and benefits they have accepted as suppliers and automakers experience slumps.

American Axle wants to cut wage and benefits to $20 to $30 per hour. Wages at some U.S. suppliers are averaging $14 per hour.

The Canadian Auto Workers union has also set a strike deadline of 3 p.m. Thursday at a supplier of suspension components to Chrysler LLC, the report said.

General Motors planned to send 2,500 workers home Thursday as it closes a Pontiac truck plant. General Motors spokesman Tom Wickham told the paper the plant would close after the first shift of the day.