Released on May 23, 2008

The United Auto Workers union (UAW) and American Axle Manufacturing, Detroit, have ratified a new labor agreement that will end a nearly three-month strike that has idled or cut back approximately 30 General Motors (GM) plants, including several metalcasters.

“This new contract provides [American Axle] and its UAW-represented workforce the opportunity to transition through a most difficult period of structural change in the domestic automotive industry,” said Richard Dauch, American Axle’s co-founder, chairman and CEO. “We look forward to the prompt resumption of normal manufacturing operations at our original U.S. locations.”

The strike had affected GM’s Saginaw Metal Casting Operations, Saginaw, Mich., and metalcasters in Bedford and Defiance, Ohio, among others, since shortly after it began on Feb. 26. Because GM wasn’t receiving the parts it required from American Axle, it had no demand for a number of its cast metal components.

Officials for GM were not available when contacted for comment.

Seventy-eight percent of UAW laborers at five American Axle locations voted in favor of the four-year labor agreement, with 22% in dissention. The agreement, approved by UAW members at the company’s Detroit and Three Rivers plants in Michigan, and Buffalo, Tonawanda and Cheektowaga plants in New York, covers 3,650 workers. Voting began on May 19 and concluded on May 22.

“Our members have had to make some tough decisions for themselves and their families and have done so with careful deliberation,” said UAW President Ron Gettelfinger.

AAM expects to have its plants running production during the week of May 26, 2008.