Axle's new proposal gives hope

[Omaha Steve]

http://www.detnews.com/apps/pbcs.dll/article?AID=/20080502/AUTO01/805020337/1148

Friday, May 2, 2008
Axle's new proposal gives hope

Sources say deal that would cut wages, operations in works
Sharon Terlep and Eric Morath / The Detroit News

Striking workers at American Axle & Manufacturing Holdings Inc., on the picket lines since February, likely will have to wait longer to go back to work.

A deal between the Detroit-based parts supplier and the United Auto Workers union is beginning to take shape, but a resolution is not imminent, sources familiar with the negotiations said Thursday.

Hopes were high among workers and on Wall Street that the labor conflict will soon end, as details of a potential deal surfaced. Part of the plan would be to close American Axle forge operations in Detroit and Tonawanda, N.Y.

About 300 people work at the forge operations in Detroit.

American Axle's stock price shot up $2.57, or 13 percent, on the news. Shares closed at $22.71.

The latest offer from American Axle to the UAW calls for wage cuts for production workers from about $28 per hour to $17.

UAW Local 235 President Adrian King confirmed the numbers and said the union is evaluating the proposal.

American Axle spokeswoman Renee Rogers said Thursday talks are moving forward, but she would not comment on specifics.

FULL story at link.