American Axle & Manufacturing Holdings, the largest supplier of axles to General Motors, plans to axe 300 salaried jobs and has said it has a new union labour agreement that cuts pay for new recruits by more than half.
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According to Bloomberg News, the supplier disclosed the reduction of about 15% of its 2,000 salaried positions in a US regulatory filing on Thursday, and also said an accord with the United Auto Workers union will pay wages and benefits totalling $US27 an hour for new recruits, compared with about $66 for current UAW employees.
The report noted that American Axle is cutting jobs, reducing production capacity and trying to win new contracts outside the United States as GM builds fewer cars and trucks in North America. The supplier last month said it had eliminated 1,473 US union positions through an October buyout offer, Bloomberg added.
According to the report, salaried employees who lose their jobs will get a standard severance package while the reduced pay package for new recruits to union jobs was part of an agreement reached with the UAW last year.
American Axle had 10,000 employees at the end of last year, including 5,500 represented by the UAW, Bloomberg News said, citing the company’s annual filing made to the Securities and Exchange Commission on Wednesday. The total employment was a decrease of 9.1% from 11,000 a year earlier, and the number of UAW workers was a drop of 20% from 6,900, the report said.
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By GlobalDataThe company’s reduced hourly rate for new hires is less than that being paid this year to new recruits at some other parts firms, Bloomberg News noted.
