Solidarity with Strikers at American Axle and Manufacturing AAM
PART 2 - THE AAM strikers reach extends to other parts makers and to other countries, shutting or curbing work at operations in Canada, the US and Mexico.
The AAM strikers are being joined by other workers that are facing the same questions about their own futures. After watching in awe as the UAW administration gave away 50 years of gains to the automakers, namely Ford, GM and Chrylser during the fall of 2008, these regular working folk have now joined together to begin the recovery of their losses. This strike at American Axle and Manufacturing and Holding Inc answers this call about taking a stand - Who, if not us? When, if not now? Where, if not here?
Many union locals have passed, or are in the process of passing regular and emergency resolutions in support of the AAM strikers. Along with the declarations of support are cash donations. The local union executive typically sends a check to the strikers that runs in the amount of several hundred dollars. Other montetary contributions from individuals and larger organizations have been made.
Even though GM brass are downplaying the strike at AAM, they are being contradicted by the independent investor analyst chatter that is not kind to the automaker. Because of the severe credit crunch, other GM operations such as Delphi (spun off from GM in 1998), are unable to escape bankruptcy - no one ever came to invest in their new business plan. In a case of corporate cannibalism, little pup Delphi has begun to nurture itself by feeding on the GM carcass. If GM does not continue to feed cash to Delphi, through loans and grants, Delphi, one of it's main suppliers, will close and that will shut all GM autoplants. AAM was also once of part of GM until the early 1990's. The twist here is that the AAM pooch is not subject to bancruptcy governance rules, it was profitable even last year. It seems like the mooching AAM administration is intent on getting a massive influx of continuous cash anyway they can get it, either from the workers, indirectly by way of wage and benefit cuts, or directly from their former owner GM. So GM has made efforts to bail out Delphi, and now will have to go to the market to borrow even more money to bail out AAM, or GM faces certain closure.
The strikers are readying themselves to take the control of the strike away from the UAW administration and to reject any and all concessions. The strikers stand pat position holds the line now, while they watch the bloodletting of these corporate dog fights from the front lines.
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GM Loss From Strike Nears $450 Million, Analyst Says
By Alex Ortolani
March 12 (Bloomberg) -- General Motors Corp., the world's largest automaker, will lose $450 million in operating profit by the end of this week because of production cuts caused by a strike at its biggest supplier of axles, an analyst said.
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, the Detroit-based supplier said in a statement late yesterday.
GM spokeswoman Renee Rashid-Merem said in an e-mail that the company would not comment on the analyst's report.
Small Repercussions
GM has shut or cut back production at 29 plants. The company had a more than three-month supply on average of light trucks on Feb. 29, according to Autodata Corp. in Woodcliff Lake, New Jersey. Analysts consider a two-month supply normal.
``The business repercussions have been minimal thus far,'' analyst John Sousanis of Ward's Automotive Group said in an e- mail.
GM is building about 5,000 fewer vehicles each day than its 2007 average of 16,000, according to a Bloomberg estimate. The shutdowns have affected almost 42,000 hourly and salaried workers, according to a document on the company's Web site. The automaker employs about 91,000 in North American manufacturing.
Chrysler LLC, which had previously said it might have to pare production because of the strike, will not have cutbacks, spokeswoman Michele Tinson said today. American Axle is getting parts from a Mexican plant to supply Chrysler, she said.
The GM shutdowns have cut into profit at suppliers such as Lear Corp., Magna International Inc., TRW Automotive Holdings Corp., Tenneco Inc. and Delphi Corp., Lache said in the note. GM shutdowns caused Lear to temporarily lay off 1,100 employees at ten facilities, spokeswoman Andrea Puchalsky said in an interview today.
Massachusetts Senator Edward Kennedy released a statement today urging American Axle to reach a contract with the UAW.
To contact the reporter on this story: Alex Ortolani in Southfield, Michigan, at aortolani1bloomberg.net
Last Updated: March 12, 2008 16:40 EDT
Thank you,
John Martyn
JOLYNA
04/05/2008
Anonymous
16/03/2008