American Axle & Manufacturing Inc. (AAM) workers went on strike after contract negotiations failed to produce a settlement by the contract's midnight deadline on Feb. 25. According to a report in The Detroit News, workers on the picket line said they weren't sure why talks broke down.
American Axle has been pursuing a controversial three-tier pay system. Union workers at AAM's Three Rivers, Mich., plant recently agreed to the wage system in their local contract, giving employees with more seniority higher pay. Union and American Axle officials have declined to comment on whether that's a sticking point between the two parties on a national level.
In addition to the UAW, the International Association of Machinists also represents some American Axle workers, but their contract runs until May.
American Axle makes driveline systems, chassis systems, and forged products for trucks and automobiles. The company’s Forging Division includes Cheektowaga Machining Facility, Cheektowaga, NY; Tonawanda Forge Facility, Tonawanda, NY; Colfor Manufacturing, with operations in Malvern, Minerva, and Salem, OH; Detroit Forge Facility, Detroit; and MSP Industries, with operations in Centerline and Oxford, MI.