American Axle local approves contract, ends GM strike

ByABC News
May 23, 2008, 4:54 PM

— -- The landmark deal for American Axle drops the company's labor costs to become more competitive and marks a painful turning point for workers who face adjustment to steeply lower wages.

American Axle said Friday it expects to have its plants running next week. Workers on Thursday night expected the company to call in electricians and other skilled trades workers over the Memorial Day holiday weekend to prepare the plants to reopen.

The vote in favor of the contract at UAW Local 235 in Hamtramck representing 2,000 workers ensured that the deal would be ratified nationwide.

The UAW said 78% of workers nationwide approved the contract. In Hamtramck, 71% of workers voted for the contract 1,172 in favor to 479 opposed, said Erik Webb, co-chairman of the local's election committee.

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

"I'm pleased that the local will be getting back to work," said Bill Alford Jr., incoming president of UAW Local 235.

While the vote at the UAW's largest local at American Axle was expected to pass, those who opposed it said the vote with was their last chance to express dissatisfaction with the deal and the company.

But surely, returning will be difficult because the strike soured the relationship between workers and company Chairman and Chief Executive Officer Dick Dauch, known for walking the plant floor and knowing workers' names.