Rank and file workers at AAM are fearful that the UAW bargainers will offer them an inferior tentative agreement to ratify. Leaks and rumors that the UAW administration will be demanding that the AAM workers concede defeat, like they have done at Delphi / Ford / GM / Chrylser ratification, have been met with incredible vocal calls of resistance and defiance.

Two weeks ago, the major supplier of vehicle axles to GM was struck by the 3600 employees. Now in the third week, the strikers are pleased that they are having a massive negative impact on GM profits. GM has been forced to close over thirty operations, about one third of their entire North American facilities. Countless parts manufacturing facilities are closed due to lack of work.

The UAW leadership has painted itself into a corner. They are again the target of scorn and derision. The strikers are prepared to keep the GM plants down for months if necessary. Food, money, clothing, supplies are pouring in to the strikers from across North America. Workers from Canada and Mexico have travelled to support the strikers on their picket lines.

During the first two weeks of the strike, GM administrators have stated that the strike at AAM has had no effect on their profits. Now in opposition, independent analysts are providing indications that GM North America could indeed falter over the next week.

Here is the news item about the weekly $300 million losses GM will be facing starting Holy Week (March 17, 2008):

Analyst: American Axle strike could cost GM $450 million
Detroit News Wire Services
Wednesday, March 12, 2008

An investment analyst estimates that General Motors Corp. will lose $450 million in operating profit by the end of this week because of production cuts caused by the American Axle strike, Bloomberg News reported today.

The walkout at American Axle Manufacturing & Holdings Inc., now in its third week, will have cost GM 50,000 autos, most of them pickups and large sport-utility vehicles, said Rod Lache, a New York-based analyst with Deutsche Bank AG, in a report today.

The production losses have been buffered by output from plants that are still running in Arlington, Texas, and Silao, Mexico, Lache said.

"If the strike were to continue into next week, we believe those plants would shut down and GM's overall lost earnings" would rise to about $300 million a week, Lache said. He has a "hold" rating on GM stock.

American Axle, a former GM subsidiary that gets about 78 percent of its revenue from the automaker, and the United Auto Workers stopped talks on a new contract March 10. They will resume negotiations tomorrow, Bloomberg reported.

Thank you,
John Martyn