May 17, 2008

Source: American Axle increases wage offer

By TOM KRISHER

The Associated Press

A person briefed on a tentative deal between American Axle and the United Auto Workers says the auto parts supplier boosted its wage offer and increased payments it will give workers to take a wage cut.

The person asked on Saturday not to be identified because the deal has not yet been presented to workers. The agreement if approved could end an 11-week strike.

American Axle and Manufacturing Holdings Inc. had been offering a pay cut from $28 to $17 per hour for production workers, with a $90,000 wage 'buy down' over three years to help workers make the transition to lower pay.

The person says the agreement includes pay of $18.50 per hour and increases the size of the buy down.