About 1,000 members of United Auto Workers Local 2093 initiated a walk-out strike at a Tier One supplier of driveline systems to General Motors Corp., seeking higher wages and improved benefits. The membership endorsed a strike action by a 98% vote in early May.
The Dauch Corp. (formerly American Axle & Manufacturing) Three Rivers, Mich., plant manufactures front and rear axles for Chevrolet Silverado HD and GMC Sierra HD trucks; mid-size truck axles for the Chevy Colorado and GMC Canyon; and universal joints, drive shafts, and related assembly components for light-duty trucks. The latter of those products are also supplied to Stellantis for some light-duty trucks.
A spokesman for Dauch stated: "We remain committed to negotiating with the union in good faith and hope to promptly reach a fair agreement."
The walkout reportedly happened after contract negotiations came to an impasse. A United Autoworkers statement framed the strike as a long wage dispute.
“In 2008, workers at (then) American Axle took major sacrifices to save the facility from closure during the Great Recession,” the UAW recalled in a statement. “Many long-time workers who were making as much as $29 an hour in 2008 saw their wages slashed to $14.50.
“Today, eighteen years later, workers are still yet to make up all that lost ground, with wages at American Axle currently topping out at $22 an hour after a five-year progression, with inflation-adjusted wages cut in half from their pre-2008 levels.”
The union then noted that American Axle/Dauch has generated $8.4 billion in profits since 2008, and claimed the manufacturers top executive have drawn compensation totaling hundreds of millions of dollars during that time... “while UAW members working at the Three Rivers plant struggle to afford basic needs, with some even forced to sleep in their cars.”
A General Motors statement indicated the automaker is monitoring the situation and “assessing any potential impact.”
The 123-acre Three Rivers plant has hot-, warm-, and cold-forging process lines, along with gear cutting and precision machining, heat-treating, and automated welding and assembly operations.
Last fall the company put forth a $132.9-million capital investment program to expand production there, including improvements to the plant structure and HVAC system, the wastewater treatment systems, as well as new machinery and updated production lines.
About the Author
Robert Brooks
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Robert Brooks has been a business-to-business reporter, writer, editor, and columnist for more than 20 years, specializing in the primary metal and basic manufacturing industries.