American Axle has finally sat down at the bargaining table with the UAW since its members went on strike Feb. 26. Since the strike, 10 plants have been shut down and about 20 percent of GM’s workforce has been affected. What makes this strike different from other recent UAW strikes is that GM has so much inventory in its truck divisions that it is not under such urgency to get a deal hammered out quickly. Also, unlike other recent UAW strikes, the company trying to cut wages is not in bankruptcy. American Axle made 37 million dollars last year. It’s hard to convince a union to allow wage cuts for a company which has been so profitable.
In this video Eric Merkle, Vice President of forecasting for consulting firm IRN Inc., discusses the effects of the American Axle strike.