Nearly 1,000 employees represented by the United Auto Workers Local 2093 will vote on a contract proposal by Dauch Corp., formerly known as American Axle & Manufacturing, on Sunday that could end a workers strike at the General Motors supplier’s facility in Three Rivers, Michigan.
Union workers voted to authorize a strike in May and walked off the job when the contract expired June 1.
The Three Rivers facility is Dauch’s largest U.S. driveline facility, Chris May, executive VP and CFO, said during a June 3 panel at the UBS Auto and Auto Tech conference. Dauch did not immediately respond to a request for comment on the tentative deal.
UAW Local 2093’s bargaining committee was able to secure Axle workers’ demand of $30 per hour by 2030 — a more than 36% increase in wages currently topped at $22 an hour over the past five years, according to the press release.
The union was also able to ensure more time off for improved work-life balance, including holidays such as Martin Luther King Jr. Day and Veterans Day, as well as no increases to healthcare costs, Josh Jager, UAW Local 2093 bargaining chair, said during a livestream on Wednesday.
Additionally, all workers with at least one year of seniority will receive an additional nine vacation days per year, Jager added. The union will also get a $2,000 ratification bonus and an extra $1,000 on the one-year anniversary.
“There’s a lot more in this agreement,” Jager said. “Prevented healthcare, safety language, maintaining our shift premiums for second and third shift, and much more we will release as soon as possible,” Jager said. “Your bargaining committee put everything we had into this agreement, and we couldn't have done it without any of you, the members, holding that line, sticking together, standing in solidarity.”
If the tentative agreement is ratified, it would be the first raise for the workers represented by Local 2093. In 2008, American Axle employees took pay cuts in an effort to keep the Three Rivers plant from shutting down, according to the press release. At the time, union members were earning $29 an hour, but their wages were reduced to $14.
“The auto industry, even parts suppliers, can afford our demands,” UAW President Shawn Fain said during the live stream. “American Axle has made $8.7 billion in profits in the last decade. They make $20 to $25 million a week in revenue out of this plant right here in Three Rivers. All these people have been asking for is their fair share, and I don't give a damn if they call you IPS or assembly, whether you build axles or engines. We all make this industry run, and we all deserve our fair share of the massive profits that we generate.”
Dauch changed its name from American Axle & Manufacturing Holdings in January, followed by the completion of its acquisition of the Dowlais Group and its subsidiaries, GKN Automotive and GKN Powder Metallurgy, for over $1.4 billion.
In addition to having GM as a customer, Dauch also produces auto parts for Stellantis and Ford vehicles, according to a May 8 securities filing.
