GM to pay up to $200M to end strike
DETROIT (AP) - May 8, 2008 The automaker said Thursday in a government filing that the
money would go for temporary payments to buffer reduced wages for
the workers, as well as employee buyout and early retirement
packages in the event of a deal.
About 3,600 United Auto Workers at five American Axle factories
have been on strike since Feb. 26 in a dispute over the company's
quest for lower wages and benefits.
The strike has crippled GM's production of pickup trucks and
sport utility vehicles and hurt its bottom line. About 30 GM
factories have been either fully or partially closed due to the
strike.
American Axle and the UAW were still talking as of Thursday
afternoon, American Axle spokeswoman Renee Rogers said.
"We are hopeful that GM's financial assistance to help fund the
buyouts, retirement incentives and buy downs...will facilitate an
expedited resolution to the international UAW strike," Rogers
said. "It's been costly and disruptive. A quick return to work
will be a win-win-win for everybody."
American Axle said in a separate filing with the U.S. Securities
and Exchange Commission that the aid from GM is contingent on a
quick end to the strike.
"We believe the offer will help bridge the gap between American
Axle and the UAW and that they will be able to reach a mutually
satisfactory agreement in the near future," GM spokesman Dan
Flores said.
GM shares fell 30 cents to $21.10 in late afternoon trading
Thursday while American Axle shares gained 38 cents to $21.75.
