DETROIT (AP) - American Axle and Manufacturing Holdings Inc. workers on Sunday learned details of a tentative contract that could settle an 11-week strike by the United Auto Workers union.
Workers gathered at a high school to hear information about Friday's agreement. Afterward, a UAW local president said General Motors Corp. was key in reaching the deal, kicking in an extra $18 million on Friday to get the agreement in addition to $200 million that it already had offered to pay.
A summary of the contract distributed by the union included base pay of $18.50 per hour for Detroit workers. That's a cut from $28 per hour for production workers, but better than the $17 per hour the auto parts supplier had been offering.
The summary also said there is a $5,000 bonus for signing the contract. And buyouts being offered include $85,000 for someone with less than 10 years with the company and $140,000 for a worker with more.
An offer of a $55,000 early retirement bonus also was included in the proposed contract.
Non-core workers -- those who aren't involved in actual manufacturing -- would be paid $14.35 per hour, according to the summary.
American Axle confirmed Friday night that both sides had agreed on a deal. UAW President Ron Gettelfinger said in a statement late Friday that the American Axle bargaining committee voted to recommend the agreement to members.
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. Most of the workers will vote Monday.
The deal could end a bitter strike that has dragged on since Feb. 26, crippling production at about 30 GM assembly plants in the U.S., Canada and Mexico, and causing thousands of layoffs at other parts supply companies.
It took the offer of a $200 million infusion from GM earlier this month to help reach the agreement. Workers on the picket lines in Detroit have been hoping for a settlement since GM's surprise announcement that it would throw in the money to help end the walkout.
UAW Local 235 President Adrian King said Sunday that GM kicked in the additional $18 million Friday to help cover supplemental unemployment benefits for workers, a sticking point in the talks.
Detroit-based American Axle makes axles, drive shafts and stabilizer bars mainly for large GM sport utility vehicles and pickup trucks. GM accounts for 80 percent of business at American Axle, which was formed from parts plants sold by GM in 1994.
Copyright 2008 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
© 2008 AFX News
