GM to Idle Truck Plant Due to Strike at American Axle
General Motors plans to idle assembly today at its Pontiac, Mich. truck plant. The idle comes due to the UAW strike at American Axle and Manufacturing.
The plant assembles the Chevy Silverado and the GMC Sierra full-size pickups. About 80 percent of American Axle’s sales come from GM, supplying axles for the automakers truck and SUV lineup.
American Axle wants to negotiate a contract with the UAW to where its hourly labor costs are around $20 to $30 per worker, from the $70 that it’s paying now. In anticipation of the strike American Axle worked overtime to build a surplus of parts for GM.
+ Automotive News: GM to idle truck plant due to American Axle strike
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Comments
chartguy
With the number of unsold trucks on the lots, this isn't necessarily a bad thing for GM.
Andrew
Does anyone else think it's a bit odd that these union guys on average are getting paid a higher base salary than the average Microsoft employee? I mean, it's great for them in the short term, but clearly it is not sustainable to be paying factory workers on a par with brilliant people who hold advanced degrees and work a lot of unpaid overtime. Most unions seem to understand that they need to balance the needs of the workers they represent with the needs of the business for which they are supplying labor. Otherwise the business goes out of business, the workers become unemployed, and everyone looses.
Dustin P. Walsh
Keep in mind that when automakers reference the hourly pay, it includes the total labor cost of an employee per hour - benefits, pension, etc. This does not mean the employees are getting directly paid a $70/hour wage.
Mena
Actually Silverado sales are only down 2.4% in 2007 as compared to 2006. Ford F-series are down 12% and the Dodge Ram is really hurting at 30%.
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