Monday, April 14, 2008
UAW rejects American Axle mediator plea
Union President Ron Gettelfinger says third party would not help talks to end strike.
Eric Morath / The Detroit News
American Axle & Manufacturing Holdings Inc. says it asked a federal mediator to help broker a deal to end the United Auto Workers 48-day strike against the Detroit auto supplier, but the union rejected the offer.
"AAM had hoped that the involvement of an impartial third party at the bargaining table could assist both sides," according to an American Axle statement sent to reporters Sunday. "The UAW refused to allow the Federal Mediator to help the parties reach agreement. AAM was disappointed in the UAW's decision."
Company spokeswoman Renee Rogers said the mediation request was made in the middle of last week.
"While the UAW had conversations with a representative of the Federal Mediation and Conciliation Service, it was concluded that a mediator could add little to the process at this juncture; in fact, it would place the mediator in a no-win situation," UAW President Ron Gettelfinger said in a statement late Sunday.
Last week, the union proposed cutting wages and benefits to between $40 and $60 an hour, down from the current $73.48 per hour.
What do these people do that deserves $150,000 a year? And you wonder why we move jobs overseas.
American Axle executives said it needs a wage and benefit package of between $20 and $30 an hour to be competitive with other unionized U.S. suppliers, such as Dana Corp. and Delphi Corp., which both won wage concessions while in bankruptcy.
The strike 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.
The walkout has fully or partially shut down 30 General Motors Corp. plants, Axle's largest customer. More than 40,000 workers have been laid off.
Neither calling for, nor rejecting mediation, is uncommon in labor disputes, said Gary Chaison, professor of industrial relations at Clark University in Worcester, Mass.
He said the company is trying to show it is "taking the high road" and wants to work toward a settlement.
At the same time, Chaison said mediators typically are called in only when talks have broken down, not when they are ongoing.
"The union probably doesn't want the pressure from a third party in the room as well," he said.
"But the need for a mediator is questionable, especially when one wasn't needed in the much more complicated talks with automakers."
You can reach Eric Morath at (313) 222-2504 or
emorath@detnews.com.
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