A strike at a key supplier for General Motors’ pickup trucks moved into its second week on Monday after union and company negotiators failed to close a deal, union officials said.
Josh Jager, bargaining chairman for Local 2093, said in a Monday afternoon statement that talks had broken down. "Unfortunately, we just walked away from the table. The company is trying to play games with words and not providing anything productive," he said, and added that the union is preparing another proposal that would include concessions to the company. "We’re still making progress," he added.
Local 2093 represents roughly 1,000 workers at the Dauch plant in Three Rivers, Michigan. The facility produces axles and other components used in General Motors’ full-size and midsize pickup trucks.
A spokesman for Dauch, which was formerly known as American Axle, said the company remains "in close communication with our customers regarding the work stoppage." He also said, "We continue to have ongoing discussions with the union in hopes of promptly reaching a mutually beneficial and market-competitive contract."
Industry contacts indicated last week that General Motors had approximately two weeks of axle inventory available to continue vehicle production, a timeframe that highlights the potential near-term impact of a prolonged work stoppage on assembly operations.
On Monday, a GM spokesman said the automaker had not yet seen any of its plants affected by the strike.
The dispute includes a long-running wage element. Workers at the Dauch plant agreed to lower wages in 2008, and since that concession the top wage has risen by $4 to $22 per hour, Jager said. The union is seeking higher top pay, targeting $30 per hour by 2030.
Negotiations continue while the three parties - the union, the supplier and its automaker customer - weigh operational exposure and contract demands. Both sides described ongoing dialogue but remain apart on terms as the stoppage extends into its second week.
Contextual note: Information in this report is limited to statements issued by the union, the supplier and the automaker and the production-supply estimate referenced above.