AMERICAN AXLE WORKERS RATIFY 4-YEAR CONTRACT
Bargainers hold line on pension, SUB, other benefits
American Axle workers said they found strength in solidarity.
"The bargaining committee had tough decisions to make, but we did not give up. We had an obligation to fight to save as much as we could," said Mike Bussell, president of UAW Local 262 in Detroit.
"It was extremely tough sitting through negotiations with a company that threatened to take everything away and take our jobs and send them to Mexico, China, Poland and foreign plants," he added. "Without the UAW, the company would have just closed the doors and given everyone a pink slip."
On May 22 workers at six AAM facilities ratified a new four-year labor agreement.
UAW members at Detroit (Locals 235 and 262) and Three Rivers (Local 2093) plants in Michigan; and Buffalo (Local 424), Tonawanda and Cheektowaga (Local 846) plants in New York approved the agreement, which covers 3,650 workers.
"The UAW bargaining committee faced challenges but never lost sight of making sure they left the table with as many protections for members as possible," said UAW President Ron Gettelfinger.
"Our members endured and have returned to work," said UAW Vice President Jimmy Settles, who directs the union's AAM Department. "They can move forward knowing that their solidarity and determination made a difference."
The previous contract between the UAW and AAM expired Feb. 25 with UAW bargainers leading marathon sessions to reach agreement with the company. Talks broke down, and the company forced union members out onto picket lines for 87 days.
"I am very proud to be a member of the UAW and very proud of the members of my local and everyone under this agreement who stood up and took on this fight," said Dana Edwards, UAW Local 235 chair. "It was definitely a hard fight, but our members stood strong."
At the bargaining table, UAW negotiators pushed against company demands that included reducing life insurance and freezing the defined-pension plan. UAW bargainers also rejected company demands to do away with Supplemental Unemployment Benefits (SUB), and eliminate dental and vision benefits.
Also, the company proposed an HMO option that could have added as much as $3,000 in new costs to UAW members, and they wanted to deny UAW workers the right to insurance coverage for their dependent children.
Negotiators reached a tentative agreement May 16.
The new contract, which reduces wages, gives eligible workers an up-front $5,000 lump-sum payment following ratification, and performance and holiday bonuses in 2009, 2010 and 2011.
The contract also provides UAW members options and protections in the face of AAM plant closings in Detroit and Tonawanda, and workforce reductions, such as:
• Buydown payments of up to $105,000 for workers at plants not slated to close.
• Buyout options of up to $140,000 for UAW workers who decide not to remain at AAM.
• Retirement options that include up to $55,000 for eligible workers who are 65 or between the ages of 60 and 65.
"If there is no union, workers get thrown to the wayside, but we have a union and this is a contract that gives our members a softer landing," said James Lakeman, president of UAW Local 846. "Our members have the option to move on, retire or plan forward with their lives."
"Without the UAW, we would have had no retirement incentives, retirement grow-ins, buyouts for high- and low-seniority members, and buydowns for those deciding to remain," Heidbrink said.
