UAW Local 2093 Strikes American Axle in Michigan

United Auto Workers (UAW) Local 2093 members began a strike at American Axle's plant in Three Rivers, Michigan early Monday morning. The union is seeking to restore wages that were cut during the Great Recession.

The strike began at 12:01 a.m., with picketing starting at 6 a.m., according to UAW statements on social media and its website. Nearly 1,000 workers are participating in the strike after contracts expired on May 31. The union says many of their workers saw hourly wages cut from $29 to $14.50 during the Great Recession.

American Axle, headquartered in Detroit and now operating as Dauch Corp., is a Tier 1 supplier for General Motors and produces parts for various GM vehicles including the Chevrolet Silverado and GMC Sierra pickup trucks. The Three Rivers plant also supplies components for the Chevrolet Colorado and GMC Canyon midsize pickups, as well as parts for Stellantis' Chrysler Pacifica minivan.

UAW President Shawn Fain joined Local 2093 members on Sunday to announce the strike, stating that American Axle had 'failed to offer a fair contract before the expiration deadline.' The union claims American Axle has taken in $8.4 billion in profits over the past decade while its CEO received $111 million in compensation during that same period.

A spokesman for Dauch Corp., formerly known as American Axle and Manufacturing, called the strike 'disappointing' but expressed commitment to negotiating with the union in good faith. GM is closely monitoring the situation and assessing any potential impact on production. The automaker currently has about two weeks' worth of axles in stock.

Negotiations between Dauch Corp. and UAW Local 2093 have not taken place since the strike began, according to a local union negotiator. Josh Jager, bargaining chairman for Local 2093, stated that the company has not called to resume negotiations as of Tuesday. The union handed a contract proposal to the company on Sunday night.

'They are on the clock, they are under the gun but their finger is not on the trigger yet,' Jager said. Dozens of Dauch employees have been picketing since early Monday outside the axle plant in Three Rivers, Michigan, which supports production of GM's profitable pickup trucks.

A majority of the axles made at the Three Rivers plant are sent to GM's Flint, Michigan heavy-duty truck plant. Jager and other sources reported that GM has about two weeks' worth of axle supply to continue production. The union has seen approximately 250 salaried workers entering the plant to make axles.

GM shares were down about 2% in afternoon trading Monday, while Dauch's stock price fell approximately 6%. The Chevrolet Silverado and GMC Sierra pickup trucks, which are made at factories in the U.S., Canada, and Mexico, account for nearly one-third of GM's U.S. vehicle sales.

In early May, workers voted 98% in favor of authorizing a strike if needed.