
Detroit, Mi.- American Axle and Manufacturing, a key supplier to General Motors plants, has continued its 10-day strike, which may cause 13 additional GM plants to shut down. This comes on the heels of the first plant closings, which have claimed 5 GM plants and 7 supplier plants since Thursday.
Chrysler may feel the heat of the strike as well, as the supplier plants also builds components for their vehicles. The United Auto Workers’ union has threatened to close 13 more manufacturing facilities by Monday if the strike is not resolved. The strike was caused by cuts in wages and healthcare benefits. American Axle is competing with Dana Corp. and in-house manufacturing from GM to maintain production contracts, contracts which may become too expensive to continue, according to AAM officials.
Workers at AAM plants have been picketing night and day, waiting for a resolution to the issue. Reports indicate that both sides have come to an agreement on the issues of concessions to maintain production, but the debate over wages rages on.
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