American Axle Strike: Unions Continue to Kill U.S. Manufacturing

From American Axle strike could be prolonged - UPI.com:

American Axel (sic) made a profit of $37 million last year and wants to cut its wage and benefits package to a total of $20 to $30 per hour. They are currently paying $70 per hour, the News reported.

Is that right? $70 per hour? Who makes that kind of money in the the auto industry? I am confident it is none of the Toyota, Honda or Hyundai employees. Surely it is not the Tokai Rika or Nippondenso employees either.

The fact is that not only is demand down, but American companies are not as competitive as they need to be. One of the key components is the high cost of employees. This is a huge conundrum as for U.S. companies as health benefits are essential and the domestic cost of living is increasing. Not an appetizing recipe.

This can be shown by the ongoing trends that have been in the spotlight lately as US Auto Parts Companies Look Overseas:

American Axle & Manufacturing Holdings Inc., Visteon Corp. and ArvinMeritor Inc. are either closing plants, buying out workers or researching plans to offload health-care costs to halt financial erosion in the U.S. in 2008. Meanwhile, these same companies are building new plants, hiring workers and winning new contracts in Europe and Asia.

The backlash from the American Axle (AXL) strike will ripple through the auto sector potentially putting a stake through the heart at General Motors (GM) and Ford (F). These companies are in no position to withstand a prolonged union stranglehold.

Unions had their place in the development of our country’s manufacturing boom as there was an inequity between company and worker. That inequity has flipped somewhat and now is in favor of worker over company.

And… don’t get me started on my soapbox with my distaste for the modern day union. It appears that early on, unions were created to benefit the working in an effort to bring them a better working environment along with a reasonable pay for the work performed. Now, unions are in an adversarial relationship with companies and appear to exist as profit centers for the union management.

There needs to be a paradigm shift with the realization that unions have been the downfall of the Detroit marketplace and will continue to move jobs overseas. Is it any surprise that we outsource and offshore so much of our labor and manufacturing pool? How long do we allow unions to lose jobs for Americans?

Disclosure: Horowitz & Company clients do not hold positions in stocks mentioned as of the publish date.

Comments

[JoeChristmas]

Unions are not the problem. The problem is the ridiculous health care system in the US, and the rising costs that erode company margins. I suppose this may finally mean something will be done to fix the mess. When it was just poor people suffering, it really didn't matter. Now that companies are losing competitiveness, perhaps something will be done by our corrupt politicians. But blaming unions for "killing US manufacturing" is a sick joke.

[Malkiel]

Another unenlightened anti-union diatribe from somebody who only sees the labor movement through the lense of the midwest-centric automobile industry. It was management in all industries that forced the adversarial model on the unions; Henry Ford and the other industrial giants hated unions back in the day and used armed thuggery to try to destroy them.

The idea that unions were somehow a passing fad and aren't needed any more is just rubbish. Employers will always be more powerful than any individual employee and being able to bargain collectively is a fundamental right employees need to have in order to level the playing field. The decline in the quality of life for working people during the "Reagan revolution" years would not have happened had workers been able to bargain collectively. We should be at the point in the evolution of our advanced industrial economy where health care and fair labor costs are already factored in and investors know in advance those things will come off the bottom line.

As for your specific complaints about this company, the decline in the value of the dollar has made internal costs meaningless to foreign buyers and pricing, but the workers have fixed or increasing costs. If you're threatening to close a plant down whether they give back wages or not, what's the incentive to take pay cuts? May as well get the full value while they can...

[EDGE]

Finally someone who speaks the truth. The union was useful at one tme, but the unions have in large report caused our jobs to go overseas. What happened to honest wages for a honest days work.

[Mykl99]

I usually don't comment on this stuff since it all seems to be an opinion someone has or not.

#1 Unions are like the biggest thing to bring democracy to the common worker - nothing else does so to put a common worker on par with management.

#2 yes some companies understand (in particular IT companies) that their company is the employees so unions are less needed. This however doesn't apply to ALL BUSINESSES.

#3 Okay - $70 an hour is not that high of a wage when you include all benefits - health care, social security, other insurances, vacation, sick time, etc which are normally counted in the figure quoted.

#4 Hmmm...despite all the complaints - the company still made $37MM? Where is the complaint here.

#5 Greed is certainly out of control in this country - CEO and sports figure salaries far out pace anything anyone is is making but gee - the economy is still driven entirely by the consumer so it seems that $70 per hour isn't so bad any more now is it?

[Buffalo Will]

My wife is employed by this company and is currently on strike against them. The costs you quote in your article are "all in costs" meaning the total cost of wages AND benefits. It also includes the cost for retiree medical coverage. My wife's hourly wage is approximately $17 an hour. I am sure YOU make more than $17 an hour.

[maire]

I'm sure unions have there place in some situations. However being in the auto industry for the past six years only in recent months has there been so much job instability. The cause, union workers going on strike. Now I would agree a drastic wage cut would make me mad to but then I'm making less than $20 an hour. The strike is affecting more than just american axel and GM. It spreads out of the U.S. and affects all of GM's suppliers. Most of us cannot afford to be off for more than a week and when we hear there is talk of the strike lasting a month or more it is very stressful. It would be nice if the two parties would at least return to the barganing table and keep talking. Our company had to cut wages as well just to stay competative. True I don't doubt that these companies make a lot more than what they say they do but I'd rather be employed than worrying about how I am going to pay the bills. Perhaps they can do what our company did and make the wage cuts for new hires.

[mnet]

you're right $70 an hour is ridiculous but what they don't tell is that figure includes salary employees wages and benefits as they are considered "overhead" for the hourly employee. These companys should scramble to other countries to produce their products, they don't have to pay any taxes or tariffs on these products produced and brought back in the US. The Mexican working in these factories are getting around $2 an hour. Now check out what the Executive compensation is then ask if the inequity justifies the need of a good union.

[2020]

Good atricle.
Generally a correct assesment, one thing left out however.
How much is management compensation in this company?

[dianome]

My husband works there and makes around 17 an hour. We are VERY middle class with a home worth less than 80 grand and one car payment (one car's paid off). That's what we can afford with him and me BOTH working. We have two kids in the mix too. To ask him to take a pay cut of HALF would limit our ability to keep our home. Never mind EVER buying a new car to replace the 11 year old one we have now. We don't smoke, don't party, and don't buy 'name brand' clothing. We wear Kmart or Walmart. I have NEVER been to a starbucks (I hate coffee, but just the same - VERY LITTLE discretionary spending).
He works hard every day (so much so that he has to ice his shoulders and take aleve daily!)
His plant voted in a THIRD tier of wages last contract AND the highest tier took a PAY CUT last time. Dickie D made NINE MILLION last year and all management got HUGE bonuses. My husband still only makes 17 an hour; usually with a 50 hour week (around 2600 hrs/year).
If you divide 9,000,000 by 2600 (hours), old Dickie boy makes roughly $3461.53 an hour. Now tell me WHO'S overpaid??????

[BKR]

Wouldn't it be nice to see the US become competitive again? Its not the wages of the blue collar workers so much as the cost for health care and retirement. Do you think maybe the government should do something? Do you think people should the stand by and watch as thier standard of living is erroded? It sounds like many other people in addition to yourself need to look out the windows of thier fancy offices or Mercedes' and see what is happening to the people instead of only listening to the spin the overpaid executives would like us to beleive.

[BKR]

Wouldn't it be nice to see the US become competitive again? Its not the wages of the blue collar workers so much as the cost for health care and retirement. Do you think maybe the government should do something? Do you think people should the stand by and watch as thier standard of living is erroded? It sounds like many other people in addition to yourself need to look out the windows of thier fancy offices or Mercedes' and see what is happening to the people instead of only listening to the spin the overpaid executives would like us to beleive.

[BKR]

Wouldn't it be nice to see the US become competitive again? Its not the wages of the blue collar workers so much as the cost for health care and retirement. Do you think maybe the government should do something? Do you think people should the stand by and watch as thier standard of living is erroded? It sounds like many other people in addition to yourself need to look out the windows of thier fancy offices or Mercedes' and see what is happening to the people instead of only listening to the spin the overpaid executives would like us to beleive.

[jacksmith]

I work in a Unionized plant that supplies to GM. I think it is terrible how the lazy workers get rewarded for being lazy everyday! The good workers get punished with more responsibility and accountability. With Union jobs everyone gets paid the same so no one has an incentive to work harder then anyone else. It is a constant competition of who can do the least amount of work.. I hope that one day they just get rid of Unions because they are a waste of time and money. In our plant there are several employees that should not be working there (late everyday, build poor quality parts, late from breaks ect...) Those employees don't care at all. I wish they could fire them and bring in better employees who need the jobs, but they can't. I consider myself a pretty good worker and it just is a nightmare everyday at work watching bad workers get away with doing nothing all day long.

[User 160131]

Re: your article on unions

My husband worked for GM for 33+ years; never did he make $70 per hour as you say. The unions aren't killing U S Manufacturing; the greedy company CEO's and boards who send all the manufacturing jobs overseas are killing the US manufacturing.
When is it ever right that a GM president makes a million and a half dollars per year, then gets a six million dollar bonus when the workers get $600.00 bonus.
My husband was telling people 20 years ago that the US was going to become a service industry country, instead of a manufacturing company. Well, guess what, it is coming to pass.

[Pioneer]

This guy is an idiot. He mentions that Ford will be brought to their knees from this fight, but Ford sources no product to AA. It's Chrysler, you dolt.

Also, they are not being "paid" $70 per hour. Their pay and benefits add up to that number.

Whatever you are being paid, it's way too much.

[Cant figurethis out]

why shouldnt the workers recieve good pay
you recieve good pay and put in less effort

[SingleMom]

I am disturbed that WE all allow these large corporations to put profit over the benefit of the employees. I doubt anyone in the auto industry that belong to a union is making 70$ per hour, however, so what if they are? Why can't the foreign automakers in this country make a decent wage of 25$ per hour or more with benefits? They can't right now because making a profit means more to the corporations. Not one corporation I have seen a report on offers their employees a fair wage (enough to pay bills, and set something aside, and improve the quality of life for the employee and their family) without belonging to a union. Why do so many "upper" managment" members make $70 per second, and then expect the people putting that money in their pocket to take so much less and have a lessor quality of life? It's that way of thinking that got us here. Big money now, forget the little guys-but make them work 40-45 hours per week and expect them to take a cut in pay when I need a raise-and while we're at it, let's ship off more jobs to foreign countries to avoid paying taxes, livable wages, and bigger profits. yeah, it seems to be working out great, doesn't it? Anyone seen the unemployment line lately? It's getting longer, and the no one seems to care-not the President, Congress, and least of all the ones who are laying us Americans off to further their profit margin and answer to stockholders that aren't even on American soil. I don't see any Chinese or Taiwan coming to my doorstep to pay my bills, but the American corporations sure are ready to do that for them.

[JayD.]

I worked at a union job loading trucks while putting myself through graduate school. Jack is so correct, once a union employee gains permanent status, they all too often become next to worthless as their output drops to "just enough to keep their job". The efficiency of the shop is severely compromised and the costs of this inefficiency must be passed on to the end user. Naturally, management looks for ways to cut costs and increase efficiency. The union blocks management from doing too much to shake up the shop. One alternative is to move the operation elsewhere and leave ALL of the union workers behind.

If the move is overseas, the heartless company also rids itself of the medical and retirement costs. Sadly, the Personal Retirement Account which our corrupt politicians refuse to consider as an alternative to SS is probably years away.

The segment of our medical insurance dollar that goes to lawyers, administrators, and non-covered beneficiaries begs for correction and there are many who are ready to jump in with a single payer solution that will let all of these heartless corporations off the hook but leave us with lousy medical care.

Sorry about the rant.

[SingleMom]

I get the sad impression that you believe that American Auto workers should make that kind of money? Why not? How much do you make? Per hour? Does that figure include all your pension &ealth care? How much are your co-pays for health care and office visit, prescriptions?

It seems people like you are ready to jump the gun and sit in judgement and help decide a wage for those who work hard and are trying to make a living and support thier family and community. You are allowed to make such a wage-can't we all? When you go for a drive, are you supporting overseas production on low wages? Or solid American wages-where you actually support those you live next door to?

We should all be writing letter after letter to our Congress men and women to step up and stick up for us, the American worker, and protect our health care (LOWER the cost!), protect our children's education, etc. I hope my children are strong enough to handle working 40 + hours a week without health care..........

[SingleMom]

Join me in helping theses strikers......I believe in thier efforts. Why in the world should Joe Blow Corporate expect hard-working citizens to take cuts---did the Ceo take one? Doubt it, what about the other parts of upper management? Why is it the bottom of the totem pole that gets cut up first?

I am striking with you all tomorrow evening......Solidarit... Forever!

[drkirk]

Oh jeez. This stuff turns my stomach. Another trickle down Republican theorist here. On the farm trickle down works like this: If you want to fatten the chickens just feed the Horses more so the chickens have more feces to pick through! Unions have done nothing more than try to protect a 50's lifestyle and if it takes $70 dollars an hour well I guess that's how much it takes which I do not believe is true just more class warfare to win over the public so corporations can continue to shaft the little guys. I mean is this guy an idiot or just never looks out the window or what? Exxon made 11 BILLION yes folks BILLION last quarter not last year. But the taxpayers need to help them build more refineries? HUH? Check out gas, college costs, health care, utilities and the list goes on. As long as people continue to support Republicans this class warfare will continue. Republicans are very adept at taking people off task. If it's not abortion, gays, guns, communists, affirmative action, some made up war and now unions people would see conservatives for what they are. Total lying hypocrites Why does a lying dope fiend (oxycontin) like Rush Limbaugh have any voice at all. What happened to the Larry Craig, Ted Haggard & Mark Foley (hypocrites) they act like they are the only ones who believe in God or are Patriots. Our economy and standard of living will continue to suffer until Democrats and Democracy are returned to power. Until then keep your nose to the stone and your head down unless you want a little more "What for"

[SingleMom]

drkirk- You are absolutely right......Thank you! Wake Up People!!!
(PS, check out how much $ Republicans give those abortion clinics, the anti-gun agendas, and all that "buddy-buddy"... protection, and more)

[SingleMom]

Edge- Get a clue buddy. Have you ever seen someone get fired who was a good worker, but just "had to be let go"? Unions protect people who don't have a say elsewhere. Yeah, I know, there are those lazy people out there who insist on going to work late, and not working to their full potential like some of us others do, but we still need these unions. I like working for more than $5.75 an hour, don't you? We have no unions, you can bet that's how much the "acceptable" age would be.

[AAM STRIKER]

Dear sir I do not make $70 an hour I make some were around $26 that number is all the cost plus future retirment pay outs and medical. AAM wants us as a work force to take a $14 hr pay cut and that is not all in cost thats off my bring home pay -medical coverage ,dental ,and optical cost no retirment a no match 401 k huge pay outs on office and scrips. I have a family of four a mortgage and a car note, car insurance and all the other high bills that goes with a working American family. Dick Dauch ( ceo) is not offering soft landings like Delphi Arvin and TRW heck even Dana gave out soft landings Magna also. So let them get there slave labor who will buy there cars when the industrial base of this country is gone. I am not striking just for me the trickle down will be a living hell. Steel, textiles,silicon valley, auto ,elctronics, ect... are all over seas now at what cost to the American people political and corporate greed has got to stop !

[AAM STRIKER]

Every great empire has been destroyed from within by greed . It's just our turn in history LET THEM EAT CAKE ! (Marie Antoinette )( as Ceaser watched Rome burn )

[cathompson]

Andrew - Here in the reality based community we have watched almost fifty years of bozo the clown running GM (into the ground) and getting paid a lot more than 70 bucks an hour to do it. If you are dumb enough to invest your money in companies run by morons dont blame the union or the rank and file for the sins of the parachute boys. How about a rant about the bankruptcy judge who took away the silver rattles from the execs bringing one of these outfits out of bankruptcy recently.

[AAM STRIKER]

Before i went on a rant should have seen the name on the article figures

[fxtrader07]

unions are powerful in germany, austria - gee, both countries are thriving and Germany has been the world largest and most competetive exporter for years (only now being replaced just by size by China).
the u.s. manufacturing base has been and continues to be destroyed by the priunting press of the Fed and the mind-boggling deficit of the government. inflating , borrowing beyond any reasonable limit is the order of the day. buit hey, america is a "service economy", right>?> low wages, low value added, little to be exported. c# on, the cure for all this is to lower manufacturing wages to service sector levels, right?
ever heard about education? europe and asia invest a lot here - while the u.s. is obsessed with fighting wars in regions the president doesn't even know where they are.
LMAO, unions can destroy a business if they make demands that are out of whack. however, the malaise of the us. economy, especuiall manufacturing has little to do with unionized labour and everything to do with the fraudulent federal reserve and the governments who have run america into the closet over the past decades

[Morix]

Lots to comment on here. Fist let me say I am a GM hourly employee.

As has been stated here plenty of times the $70 is a bogus number based on precieved benefits which continually degrade.
Your assumption that the Union is in an adversarial relationship with the companies show your total lack of knowledge.
The Union is becoming the company and doing what is in its interest not the interest of its members. With the establishment of the VEBA the UAW will be the largest single shareholder in GM. So who's interest do they have in mind. The company's and the share price or the hourly employees?

This strike is a farce and will not Bring GM to its knees. We have over a 4 month supply of Trucks of which we need parts from American Axle. What is happening here is the UAW is helping GM reduce some inventory and idle some plants. I'm sure GM can write off the lost production time.

The demands from American Axle are extreme by design and it will be some time before they settle because the Union must be made to look like they won something. My guess is the workers will settle for a $5 to $6 an hour paycut which is what American Axle really wants anyway but by working in cohorts with the UAW the Union saves face by saying they at least didn't let them have the $14 per hour paycut they were asking for.

It must be nice to have your own little article to spew your personal thoughts. What would be nice is if you did some research first so you didn't sound so ignorant.

The reason companies are moving overseas has little to do with hourly workers compensation and alot to do with taxation and regulation. You want jobs to stay in the USA then those items need to be fixed.

[AAM STRIKER]

MORIX :AMEN BROTHER

[justaguy]

Companies are going overseas to manipulate cheap labor and non existing human rights laws. Profits are the only reason they are going to Asin markets. Gauranteed the cost of products will not be reduced in the mane of greed.

[scott b]

When you publish false news it will make consumers buy foriegn autos. Companies say the union worker makes over $70 an hour but what you and the companies fail to disclose is they are including, not only the wage, but Healthcare, Retirement, Buyouts, and many other variables. Unions may not be as necessary as they once were but, the foriegn competitors are getting the same benefits. Thanks to unions. Try to report on a full spectrum next time, give readers all the facts so they can make their own conclusion, and not yours.

[My kidsfuture?]

I would have to agree with Mykl99's initial thoughts that "I usually don't comment on this stuff since it all seems to be an opinion someone has or not.

I would for a company that is a supplier into the automotive industry. We have seen our sales continue to errode as the traditional big 3 have continued to source product to low cost countries. (We price our product in four decimal places, $0.000X and have lost business to LCC's for tenths of a cent. When I see a fully loaded rate of $70/hr, I compare this to our fully loaded rate of $23/hr and I questions how you can make $17/hr and have $53/hr in vacation, benefit, medical, etc. Our average paid wage is $17.50/hr.

I would suggest that greed is our biggest issue, CEO's greed drawing salaries that boggle the mind, lawyer's greed when suing on medical malpractice lawsuits, employee's greed, the union's greed.

If you look at recent changes in the automotive industry, there is a general recognition by top union management that changes need to happen. I only hope our politicians, industry leaders and fellow citizens change before we completely destroy manufacturing in the United States. What are we leaving for our kids?

[G.M TruckPlant Canada]

I work at General Motors in the Truck Plant here in Oshawa, Canada and i find these Big Companies that are now trying to Rape there employies discusting... They are still making Millions if not Billions of Dollars in Pofite every year and yet no matter how much we make for them they still want us to go back to sweat shop labour... Even if we could go back to making $12.00 an hour which i am sure they would still not be happy with who would buy there products... The more good paying jobs that our Countries loose the less people can afford these Companies Products... Time to Wake Up and take a Stand, not only for Ourselves but for any Future Employies as well... Remember we DO NOT live in Mexico or China and our Cost of Living in Canada Or The United States is much much higher then it is in those Countries. If you think This Strike is Bad at American Axle Just wait till this fall when our contracts run out up here in Canada with Ford Chrysler and G.M. GOD Help Us All because it is time to take a Stand

[AAM STRIKER]

Look who wrote the article. This guy has never walked into a plant he might get his designer name clothing soiled .He has never toiled in a hot sweaty factory and come home tired and sore from throwing steel all day. The most he's lifted is latte from starbucks. This cat sits and plays with fiction all day it's not his money. And when the crash happens and it will. He will be the anoying rich guy you see in the movies that you pray gets it first ,Because being spinless is a resume highlight. The working class is nothing more than feces in the tread of his money changing jack boots. WHAT A SMUCK

[Canadainrocker]

As an employee for G.M supplier ( non-union ) in Ayr, Ont. Canada, I am disgusted by the ongoing greed in the states. You think only of yourselves and nothing of the other families you are hurting. I hope not for the same greed to be shown by the CAW in the fall, as last post suggests. It is time to sit back, not take a stand and keep food in the mouths of those who need it.

[bflochp]

The most amazing realization that I get from reading the "added comments" is the lack of comprehension of just what constitutes a wage by the majority of those who took the time to vent over the article. What exactly do they think an "all in wage" constitutes? The in pocket portion only, with the fringes something that materializes from being at the work site? Fringes are wages, either offered by an employer or negotiated in the collective bargaining process by labor pressing management. The resultant labor wage aggregate is the cost to produce the widget and is paid on behalf of and directly to the employee. For those who would chose to challenge, I am an electrical contractor, having started my career as union apprentice, progressed to becoming a union employer and representative for my association these are familiar facts. Obviously, the bulk of the contributors are educated enough to wander thru the financial web seeking an escape from the deplorable situations they would hold up to justify the rabid philosophy the divides so much of this countries industrial capability. For AAM Striker to throw down the unspoken "Jewish writer" slur before going on a "rampage" is to paint himself as an Archie Bunker wannabe who's opinions are of no consequence. Canadian rocker would hold greed up as a particular American trait, responsible for what he/she perceives to be the cause of his non-union status. BKR opines about wishing for the US to become competitive again, perhaps with the Government "doing something" to make it happen. Then, just to make sure a reader gets his/her point, slams it 3 times in print. Ms. User 160131 would make an observation on the excess of executive pay. Its a good point but one that should be taken up with the stockholders and the idiots that far too frequently get appointed to compensation committees. I would offer up the question; why did she (or husband union member) not lobby for ownership reform by their union retirement investment representatives. Were their union leaders compromised in some way, like being in the pocket of management. The husband, for 20 years, was telling every body of the fate to come to this countries manufacturing. 20 years, huh! And nary an example of what real effort he might have taken to be proactive to save his lifes work. That thought by the way is the core of the writing by Mr. Horowitz.
Really, you who write to this editorial ought to reflect on what went wrong with your dream, goal, wants and how YOU are going to remedy the situation. Racial slurs against the messenger aren't the answer. Holding your hopes for Hillary is preordained to get you more of what you got already. Expecting your union gurus to lead you to the promised land is like Jim Jones exhortation to slurp the cool-aid to refresh yourself during negotiations. You have the responsibility for you families future, work for it or accept what is offered.

[hooterhorse]

They don't get paid $70.00 an hour....that is the total cost of their wage & benefit package (you know...UC insurance, vacation, retirement, health....ect). In 2002, my wage and benefit package came to $54.00 an hour and I certainly didn't make any GM type wages! I see no reason why the workers need to make ANY concessions if the company is pulling profits like reported. The other companies in the auto industry were posting record LOSSES, so American Axel has no right to ask for the same treatment as GM & Ford!!!

[AAM STRIKER]

sorry sir your wrong I was reffering to some of the stuff he has said before not his race or religion just did not catch the name at first

[drkirk]

So let me get this straight Mr. Peter Bowers. You are what would be called a "turncoat" "fence jumper" "Benedict Arnold"? Who obviously prides himself on his vocabulary? I would choose (not chose) to challenge you! Hypocrite is what you are. You are like many other people that have no problem reaping the benefits of Union collective bargaining but when you have an opportunity to support the Union what do you do? Guys like you got "fragged" in Vietnam! My stomach is starting to turn again. Go to Mexico if you want independence from Unions. Either you are just another grossly misinformed Republican or just a "bum"

[axltroof]

I have resisted commenting on any editorials or articles as I fear that it would be pointless to try and argue for the "other side".
As a direct manager of those walking the picket lines I feel for each and every one of them and their families. Most of them are good people with a decent work ethic. However, the UAW has protected thieves and troublemakers for so long that it is difficult to support their efforts. In one plant the UAW Local 235 has protected a 3-time convicted SEX OFFENDER who was recently caught again is out on bail and back at work. He has been up for discharge on several occasions and the UAW has bargained with management to keep him on despite the "piece of sh*t" that they claim he is.
AAM has resisted the fight to discharge this associate as they fear legal backlash and getting dragged into his legal proceedings dealing with his inability to keep his dick in his pants at the local high school playground.

Back to the issue at hand. AAM's direct competition, Dana, pays their people $14/hr. How can AAM compete with their costs? Each striker should put themselves in GM's shoes and ask yourself why you would pay AAM for axles that you can cheaper at Dana?
This is what will dictate AAM's future. As for Dauch making $9Million last year. People need to understand what $9M is made up of. His base salary is around $250-300K which is a lot, however, he made AAM and has earned it. The rest is the exercising of his stock options. People need to understand the investments and sacrifices made by Dauch to get AAM going 14 years ago. Last year he chose to cash in some of his investments. Why should someone fault him for that? Had each striker wisely invested some of their wages in AAM stock 14 years ago they would be able to reap some of those rewards as well. The sad truth is that very few hourly workers take advantage of the AAM 401K matching plan. THAT IS FREE MONEY FOLKS! But hey, I guess the Escalade needs gas first.

One great thing about the UAW, AAM and life in the U.S. is the fact that it is a democracy. People are free to protest, vote and do a lot of things. One of those rights is to QUIT. If you don't like your job and think you are getting screwed then QUIT and get a new job. Not easy? GET AN EDUCATION. Too old? Thats a lame excuse. One sad belief is that people think AAM is in business to employ them and give them a paycheck. The truth is that AAM is in business to make money. So many of the AAM hourly got in early and got in young. All they saw was the $$$. As wages and OT increased so did their spending. Now what?
Just a quick point on AAM profits in 2007. AAM made around $30 million in profits in 2007 on $3.2 BILLION in sales. That is not even 1%. Does anyone understand that is peanuts??? That is a baby step away from losing money. Does AAM need to be in bankruptcy for the UAW to conceded to the Dana wages? They aren't far away if they keep paying hourly $60-70 fully loaded per hour.

Again, on a personal level I wish those on the picket lines well. This sucks for everyone. Hopefully we can all get back to work soon.

[tlt]

These guys need to make a decent buck, that I agree. Maybe they would be a bit more competitive if they replaced their pensions with a 401K and paid a bit more for their health insurance costs. Traditional pensions in this country are history, learn to live with it. Unfortunately it is a global market economy and we have to compete with the world, there is no going back. I agree executive pay is a bit excessive and just like these unions, these executives can negotiate what they want. Even if you took the CEO's total pay and distrubuted it to all the employees it would not add up to all that much at a firm loike axle. If you don't like what you are paid just move on to something else.

[pedge]

The unions have been Detroit's problems for years! In American Axle's case, sure the hourly employees only make $17. But YOU DO have to factor in their benefits. I wonder how much comes out of their check a week for these health benefits. Probably $0. Are these workers offered a pension also, hmmm? I know many people out there (I must say that are not Mexican) who would love to do this work for less coin with benefits like these. C'mon lets not kid around this is uneducated labor with a high school diploma needed to perform these duties at best. Why should a GM or Ford line worker make $25 to $30 per hour when a worker at parts plant down the street makes $9 an hour. Oh! because they are unionized that's why. In reality, most companies don't offer this kind of dough and benefits! The auto workers have been spoiled for waaaaay waaaay to long and now its biting them in the backsides. Take a look at Chrysler, they are just starting to get it right in regards to wages and benefits.
It is true a lot of that American Axle's labor cost is due to health care increases and something needs to be done about that. Americans and Amercian companies pay way to much for something that is so subpar in quality. (I don't even want to get started on the subject of health care and what people in this industry make)
Unions are a thing of the past. Just ask any former Detroit News employee on what good being in a union ever did for them. It does promote laziness and swell the cost of a company. It is a different world today. Competition it so tough overseas. There is no room for excess fat. Until these unions go away we will continue to get are asses kicked and handed to us in Detroit. Unfortunately these automotive jobs were million $ jobs for our parents. We just need to realize this is not the case no more and there are people in this world who will do more for far less. It sucks, I know!

[gatekeeper]

It's interesting that GM has been calmly shutting lines down while AXL and the UAW haven't been in a hurry to talk. It's like there's a 3-way agreement - implied or otherwise - to just let things ride for a few weeks. Why? (1) GM gets to reduce inventory, (2) The UAW leaders look like stubborn heroes to their members and (3) AXL probably gets some quiet kudos from GM for going along with the "stall" and has probably received a signal from the UAW RE working something out on legacy costs .... at the right time. Everyone wins.

[BILLINTIME]

IT FIGURES HE MUST BE A REPUBLICAN,I'VE WORKED A UNION AUTO JOB FOR 32 YEARS AND IT'S NOTHING LIKE MR. Horowitz SAYS.HOW CAN HE EVEN JUDGE US WHEN HE'S NEVER WORKED HARD A DAY IN HIS LIFE.I'LL BET HE DRIVES AN ASIAN IMPORT.THANKS FOR THE SUPPORT YOU FOOL.I WORK HARD AND I'M PROUD OF IT.

[AndrewHorowitz]

"IT FIGURES HE MUST BE A REPUBLICAN,I'VE WORKED A UNION AUTO JOB FOR 32 YEARS AND IT'S NOTHING LIKE MR. Horowitz SAYS.HOW CAN HE EVEN JUDGE US WHEN HE'S NEVER WORKED HARD A DAY IN HIS LIFE.I'LL BET HE DRIVES AN ASIAN IMPORT.THANKS FOR THE SUPPORT YOU FOOL.I WORK HARD AND I'M PROUD OF IT."

Now, I have just about had it with the uneducated and the insulting banter that is freely allowed to be written without a shred of knowledge of the real information. Not that it is of any consequence, but for your info, I drive and American car and I work 80+hour weeks. So do me a favor and stick to the topic as anything less make you look even more foolish than you already are.

AND...READ PEOPLE...READ! I never...NEVER, would put down a hard working individual and would never wish to take a job away from anyone. BUT..... the truth is the the middleman..the UNION costs us ALL dearly!

Stop putting your own personal matters in front of everyone else! That is why we are in this predicament to begin with. Everyone wants what is good for them, the unions, the management and the workers. None care about the other, and let's all face this basic fact. That can also be proven by the comments here.

More Proof??? 1 word.. DETROIT

Look at my history and comments. I have been screaming for over 2 years that we have problems and credit liquidity will dry . Am I 100%... NO. But have been much more right than wrong since last May...

Comments accepted...but slurs, insults, stupidity and other reckless idiocy not required.

Finally... AAA, I do not believe you about the "name" comment. It was obviously not in good taste. Though, I do forgive you and hope the best for you. I realize you are in a tough spot. best of luck..

If you do want to hear what I am talking about with some great industry guests, have a listen to my podcast (which is clearly on the mark as it is one of the top independent podcasts available)

phobos.apple.com/WebOb...

Andrew Horowitz

[BADDAD]

When America as we know it is no longer here, feel free to blame a mindless media, corperate greed, stockholder greed, CEO greed, programed consumers, and a host of other reasons that would make all your grandfathers & grandmothers turn over in thier graves. If it were not for UNIONS in this country we would all be working for slave labor like the rest of the world that we buy our imports from. The bottom line is this, Americans should buy American. How many people in China, Japan, or anyother country for that matter do you think drive American imports? How many do you think buy Jeans, Tennis shoes or Shirts that are imported from America? If the people in this country won't support this country, then we have no country! If your not part of the solution, you are the problem. If you like cars and trucks from Japan, feel free to move to Japan. We won't miss you! If you like toys (with lead paint) and clothes made in China or there abouts, feel free to move there also. We won't miss you! We know why you stay here, because our government protects your right to buy what you wish and elsewhere you would be punished for your unethical purchases. When they succeed in taking away our guns, stomping out our unions and get national (CRAP) health care, we will be no better off than any other third world contry on Gods green earth. Have a Nice Day!!!

[pedge]

I think we are missing the point! Sure the unions were good for the U.S. back in the day, oh 50 years ago! During the times of unfair labor practices and when there was in equalilty in the workforce. Today we are not the emerging economy we once were. I might be giving employers to much credit, but I think employers are for the most part smarter today than the past in how they deal with their employees. If they have a good employee they are going to do their best to retain them. They just don't shitcan people for no reason anymore. there are just to many lawyers out there these days who would be more than happy to take a wrongful discharge case. Just ask the city of Detroit and the mayor.
People complain about, well who is going to have the money to buy these cars. Well, is it possible with less cost going into the car the cheaper the car might be at the dealership. Thus the more our auto manufacturers might sell, increasing the need for our workers to build more cars. Who knows with a cheaper car Americans might start buying American again.
The Unions played their role and now they can go overseas to China if they really care about unfair labor practices. Hey, without unions you don't have to loose an hour during the day for mandatory lunch break and take stupid 15 minute breaks every two hours. Or is that something that union employees get paid for also? I read most of these messages above and haven't heard from any of the union supporters what good the union has done for them (Well, I retract that.....besides keeping an inflated hourly wage for unskilled labor) since our grandparents generation. Unions don't let the door hit you in the ass!

[pedge]

I think we are missing the point! Sure the unions were good for the U.S. back in the day, oh 50 years ago! During the times of unfair labor practices and when there was in equalilty in the workforce. Today we are not the emerging economy we once were. I might be giving employers to much credit, but I think employers are for the most part smarter today than the past in how they deal with their employees. If they have a good employee they are going to do their best to retain them. They just don't shitcan people for no reason anymore. there are just to many lawyers out there these days who would be more than happy to take a wrongful discharge case. Just ask the city of Detroit and the mayor.
People complain about, well who is going to have the money to buy these cars. Well, is it possible with less cost going into the car the cheaper the car might be at the dealership. Thus the more our auto manufacturers might sell, increasing the need for our workers to build more cars. Who knows with a cheaper car Americans might start buying American again.
The Unions played their role and now they can go overseas to China if they really care about unfair labor practices. Hey, without unions you don't have to loose an hour during the day for mandatory lunch break and take stupid 15 minute breaks every two hours. Or is that something that union employees get paid for also? I read most of these messages above and haven't heard from any of the union supporters what good the union has done for them (Well, I retract that.....besides keeping an inflated hourly wage for unskilled labor) since our grandparents generation. Unions don't let the door hit you in the ass!

[pedge]

I think we are missing the point! Sure the unions were good for the U.S. back in the day, oh 50 years ago! During the times of unfair labor practices and when there was in equalilty in the workforce. Today we are not the emerging economy we once were. I might be giving employers to much credit, but I think employers are for the most part smarter today than the past in how they deal with their employees. If they have a good employee they are going to do their best to retain them. They just don't shitcan people for no reason anymore. there are just to many lawyers out there these days who would be more than happy to take a wrongful discharge case. Just ask the city of Detroit and the mayor.
People complain about, well who is going to have the money to buy these cars. Well, is it possible with less cost going into the car the cheaper the car might be at the dealership. Thus the more our auto manufacturers might sell, increasing the need for our workers to build more cars. Who knows with a cheaper car Americans might start buying American again.
The Unions played their role and now they can go overseas to China if they really care about unfair labor practices. Hey, without unions you don't have to loose an hour during the day for mandatory lunch break and take stupid 15 minute breaks every two hours. Or is that something that union employees get paid for also? I read most of these messages above and haven't heard from any of the union supporters what good the union has done for them (Well, I retract that.....besides keeping an inflated hourly wage for unskilled labor) since our grandparents generation. Unions don't let the door hit you in the ass!

[pedge]

I think we are missing the point! Sure the unions were good for the U.S. back in the day, oh 50 years ago! During the times of unfair labor practices and when there was in equalilty in the workforce. Today we are not the emerging economy we once were. I might be giving employers to much credit, but I think employers are for the most part smarter today than the past in how they deal with their employees. If they have a good employee they are going to do their best to retain them. They just don't shitcan people for no reason anymore. there are just to many lawyers out there these days who would be more than happy to take a wrongful discharge case. Just ask the city of Detroit and the mayor.
People complain about, well who is going to have the money to buy these cars. Well, is it possible with less cost going into the car the cheaper the car might be at the dealership. Thus the more our auto manufacturers might sell, increasing the need for our workers to build more cars. Who knows with a cheaper car Americans might start buying American again.
The Unions played their role and now they can go overseas to China if they really care about unfair labor practices. Hey, without unions you don't have to loose an hour during the day for mandatory lunch break and take stupid 15 minute breaks every two hours. Or is that something that union employees get paid for also? I read most of these messages above and haven't heard from any of the union supporters what good the union has done for them (Well, I retract that.....besides keeping an inflated hourly wage for unskilled labor) since our grandparents generation. Unions don't let the door hit you in the ass!

[lastlap]

Who do all of these companies think are going to be able to afford their products if everyone here is making minimum wages or laidoff. Because they are all overseas or in Mexico paying their employees little or nothing. I sure as hell don't see the prices of cars going down. Only the CEO"S wages.

[go back towork losers]

im a union worker at the pontiac mi truck plant and i hate the fact that some parts plant can dictate wether i can work or not. its know wonder gm and others auto makers are leaving. all it takes is for 3600 workes to go on strike to kill some poor persons life. thease dam unions dont care about anything but getting some undeserving person more money. let me ask you if you were a business onwer at a shoe store and you had a employee that asked you for a 20 raise every month you would have to keep saying no. now imagine a union was formed and you were forced to pay that same employee 25 hr and a pension and health care you would have to go out of business right. and move to a differtnt store and change your name i know a shoe store is far from gm or american axle but alot more the same if you think about it.save the 50s life style what a joke. i say quit having unwanted kids your cluttring up the earth!!!! also we need to stop letting in the unwanted alians. this is a nation built on letting in the bad. rember ww11 why havent we done that and take back some of are jobs. we are the super power and we have to stomp that foot. i here people say we need a change why!!!!!!!! i think we need to fix whats broken first. all a change means is to turn a blind eye on something thats allready broken. im still waiting on some that can fix what broke all these politicans keep saying is vote for me. but they never say why we should vote for them id like to see a president that will go up aginst the unions and tell them to get the hell out of here or quit crying. but were still living in the 50s we are a nutured super power im said to say. i dont think it really matters who we vote for were still going to give into all the other cry baby countrys who demand are help. so to the unions it 2008 not 1950 please go back to work!!!!!! i have a house payment this month id like to be on time ty

[jim mcdowell]

are you kidding? its not the worker thats asking for too much its the ceo and his over paid staff. i mean come on rick d. took home what ?99 million in bouns money? he owns an island? and he wants me and my co workers to work for less? NO WAY!!! i work hard for the pay that i get. i earn every dime i get.

[BADDAD]

Ford Motor Co. on Friday reported granting Chief Executive Alan Mulally 715,230 restricted stock units valued at more than $4 million as well as 3.56 million stock options, according to a filing with the Securities and Exchange Commission. The value of the stock units is based on Ford's closing price of $6.14 Wednesday, the date the units were granted.

Ford awarded Mr. Mulally and several other executives a total of two million stock units valued at nearly $15 million, and more than 6 million stock options, for their performance in 2007. The company reported a lost of $2.7 billion in 2007, down from a loss of $12.6 billion in 2006.

The compensation disclosure comes a day after General Motors Corp. revealed in regulatory filings that it gave Chairman and Chief Executive Rick Wagoner a 33% raise in his 2008 salary, to $2.2 million, and awarded him stock worth at least $1.68 million for his performance in 2007. GM reported a loss of $38.7 billion last year.

Earlier this week, Mr. Mulally announced all Ford hourly and salaried employees in the U.S. and Canada would get bonuses. Hourly workers will receive $1,000 lump-sum bonuses, he said.

If that $1,000 is not a slap in the face after reading the above, I don't know what is.

[pedge]

At least it is $1,000 CASH and not declining stock options. These CEO's get these stock options in order to give them some incentive to give a damn about the company they are running. Maybe they might turn the company around and increase what is already a lucrative bonus. In any case I don't know how anybody in the company can get a bonus that loses that much money (whether CEO or line worker). It is very true that CEO's are given way too much in compensation. Who decides a CEO compensation anyways(I really don't know)? Hey union workers don't get frazzled, if you get a $1,000 bonus when your company is in the red $2 billion just imagine what your bonus will be when your company actaully earns money!

[Tony D]

Exactly what Americans need to read more of - Unions are killing America one company at a time. To all the bleeding libs out there trying to protect "The Great American Coffeebreak" - take a look out the window next time you are driving to work and ask if there needs to be 15 people standing around one guy working laughing and drinking - taking $75/hr of your money. I think you'll see the idea really quick.

[Tony D]

Oh PS - To all of you bloggers who are saying that "its the greedy CEO's fault", a company is not in business to give you a job. The baby boomer/hippies generation believes it is their God given right to have a job, and make $70/hr. It isn't. We live in a employment at will country, meaning you can be hired and fired at the drop of a dime. Instead of taking off from work and marching around to picket, pick up a book and learn a new skill or trade. Stop grouping together and hoping that will work. As long as we have free trade and employment with China/India/3rd world, jobs will continue to be shipped out. Unions and minimum wage are the primary causes for that. If you think your CEO is greedy and takes too big of a paycheck, then start your own business. America is great by capitalism, unions and government-enabled price fixing (minimum wage/price ceilings/floors) mess up the system.

I know there are thousands of families living throughout America barely getting by and "believe" the unions are a good thing. They're not. You probably think minimum wage is a good thing. It isn't. When minimum wage increases, you overall net take home pay (how much you have to spend) decreases.

As I mentioned previously, the only way to stop CEO greed (which is definitely true and disgusting), is to start your own company. Instead of banding together with other workers to stop your current company, band together to start a new company. Put it in your doctrine and mission statement that the new company CEO will not make more than n times the lowest paid worker (aka Japanese model) and your new company will be more competitive than your old employer. By having a more competitive company your price will be better and you will put your old boss out of business. Its capitalism, its supply and demand, it works.

As for those shopping at WalMart - you are killing yourself! You support a company that ships jobs and money overseas. I know the first argument will be that they have cheaply priced goods that you can afford. You can afford American made goods too - you only do not need to buy 10 of everything. Your kids do not need 1000 toys. You do not need a flat screen TV. We need to learn to live within our means, and to live like our grandparents. Try NOT buying something for a change, see how it feels. Try cooking instead of going out. Goto a bank once a week and put money in. Stop taking out loans to pay for frivolous expenses. With a national savings rate of -.05% (meaning collectively America spends more than it saves), we are killing ourselves. When it boils down to it you have to look out for number one, and your line buddy or friend from the job has to worry about his family more than he worries about you.

In conclusion, people need to stop whining and go back to work. I know I could be fired any day, so I continually try to make myself better. I learn new tools in my spare time, I work late and come in early. I don't expect paid vacation or double/triple time. I keep myself competitive, something that unions don't seem to grasp.

[go back towork losers]

right on tony d i wish more people feel like this

[go back towork losers]

right on tony d i wish more people feel like this

[workingstiff]

hi.
i work for a union company that sends GM supplies all over the place to canada, mexico and everywhere in between. we are one of MI biggest crossdock facilities for GM. recently, i have had to bid my shift over and over again due to our company laying off workers. it kinda sucks man. ive been bounced around all over my hours and then i find out im next in line to be laid off if AAM does not go back to work soon. i dont know about you, but i would love to make the money you guys make. i am barely getting by as is and if im forced to collect unemployment with no definite return to work date, im going to fall behind and be in pretty bad shape. im only 25 and ive already had to swallow my pride several times. ive lived in my car in the middle of winter, sleeping in kroger parking lots and ive had to beg people to let me shower or do my laundry at their house. when i got my job at my compnay i didnt go to work for my union. i went to work for myself. no one else. i have to support myself. we are all hurting and i know things are tough right now... believe me. i want nothing more than for this problem to sort itself out, but it might not happen like that. and it might not happen soon enough. if i am forced to be laid off ill have to start looking for another job. i dont care if i have to work at mcdonalds or somewhere like that. so what if im not making $11.80 p/hr. at least ill be making something. no matter what happens i have to survive. i MUST keep eating and sleeping indoors. i wish this mess was over so i could keep my job. i want to see some familiar faces back at work with me. these people are going to be hurting sooner than i am and i feel so bad for them. my seniority is the only thing that saved me. as for the unions... i dont know anymore. too many people at my company seem to get a "get out of jail free" card. they can be fired for falling asleep at work but be right back the next day. isnt that like the most unproductive, lazy thing one could possibly do at work? whatever, that same dude is a convisted rapist and stuff. it sucks. people need to learn some personal responsiblitiy and quit depending on their "brothers" to bail them out when they mess up at work.
we recently had a meeting with our co-owner, in which he asked us to keep our productivity up. i cant blame him. i run a lot of GM frieght everynight. in the freezing cold on an open crossdock and sometimes for 12 hours at a time (without a choice). i dont mind the overtime, but its bittersweet knowing its due to my coworkers poor performance. there is nothing my comppany can dot to remedy this siuation. people come in and milk out their work til the end of their shift and thats it! no more... it sucks because myself and a few others a left to pick up the slack, the dead weight... so i guess the union is keeping some lazy assaes at work which tends to actually make my job harder than it needs to be. other than that. they have their hands in my wallet too much. i dotn need to be protected because i come to work for that very reason.. to work and earn money for myself to pay bills and eat and be happy. what do people need to be happy in this world? a big car? a big house? what? i guess you need what makes you happy and stuff. i need very little. food, smokes, a place to live, and money to save in case of events such as this. i need to get real and start looking into college. youre never too old. im tired of my moniquer... the working stiff!

[BADDAD]

By Michael Brush
The typical pay for CEOs at big U.S. companies now tops $10 million, or roughly 200 times the average American household's income. So you might think top executives could resist charging the company for treats like German cars, elite club memberships and the private use of jets.

Nope.

A review of contracts and severance agreements from the past few months shows companies continue to treat execs to a potpourri of goodies like these:

A Mercedes-Benz given to the departing chief executive of a bank.

Use of a jet for regular commutes to work.

Exclusive club memberships.

A discount card giving a departing Wal-Mart Stores (WMT, news, msgs) honcho -- a multimillionaire -- 10% off on toasters and other stuff.

"It's ridiculous what these people do," laments Don Hodges, who believes his Hodges Fund (HDPMX) outperforms partly because it avoids companies where there are signs of a weak board -- including excessive executi