DETROIT - About 3,600 workers at American Axle and Manufacturing Holdings Inc. will find out soon whether a new contract was worth 80 days without a company paycheck.
Bargainers for the United Auto Workers reached a tentative agreement with the company on Friday that could end a bitter strike against the auto parts maker that crippled dozens of General Motors Corp. factories in the U.S., Canada and Mexico.
Renee Rogers, spokeswoman for American Axle and Manufacturing Holdings Inc., confirmed Friday night that both sides had agreed on a deal, but said she could not provide details.
UAW President Ron Gettelfinger said in a statement Friday night that the American Axle bargaining committee voted to recommend the agreement to members.
The union said details of the deal would be presented to members in Detroit on Sunday. Times and locations of meetings for workers at plants in New York and Three Rivers, Mich., were still being arranged, the statement said.
It was unclear when votes would take place or when the workers could return to their jobs. About 3,600 UAW members at five factories have been on strike since Feb. 26 over the company's demand for reduced wages.
"This has been an extremely difficult struggle for our members and their families," UAW Vice President Jimmy Settles said in a statement. "By standing strong during this strike, UAW members gave our bargaining committee the strength to face the challenges at the negotiating table."
The work stoppage affected more than 30 GM plants and decreased production by 230,000 vehicles through April. GM also said the strike cost the company $800 million in the first quarter.
Workers on the picket lines in Detroit have been hoping for a settlement since GM's surprise announcement on May 8 that it would throw in $200 million to help end the walkout. The offer was contingent on a quick resolution of the dispute, but the deal didn't come for more than a week as both sides haggled over health care costs and supplemental unemployment benefits.
On May 1, workers said they were told by a union official that both sides were negotiating a settlement that included the closure of American Axle's Detroit and Tonawanda, N.Y., forge operations. At that time, the deal also included wage cuts for production workers to $17 an hour from about $28.
Workers also were told that skilled trades employees such as electricians would see their wages cut to $25.50 an hour from roughly $32.
The company would pay workers $90,000 "buydowns" over three years to ease the transition to lower wages, and it would offer $140,000 over two years for workers to sever all ties with the company, workers said they were told.
GM said in a filing with the U.S. Securities and Exchange commission that its money would go for temporary payments to buffer reduced wages for the workers, as well as employee buyout and early retirement packages.
American Axle makes axles, drive shafts and stabilizer bars mainly for large GM sport utility vehicles and pickup trucks.
GM was fortunate because during the strike, high gasoline prices and a sluggish economy stopped people from buying larger vehicles. The strike helped the company cut down its inventory of pickups and SUVs.
During the American Axle strike, workers at two key General Motors Corp. factories went on strike over local issues, and industry analysts said the strikes were moves by the UAW to draw GM into the dispute with the supplier. Union leaders denied the strikes were connected to American Axle.
As the strike dragged on from winter to spring, workers accused the company of being greedy, making millions while trying to cut their pay in half. The company said it needed a contract with labor costs that are competitive with other U.S. auto parts suppliers.
Several times company officials, including Chairman and CEO Richard Dauch, threatened to move production from the U.S. factories to plants in other countries.
American Axle, formed from parts plants sold by GM in 1994, says its hourly manufacturing labor cost is now $73.48 in wages and benefits, three times the rate at its U.S. competitors. The company said it wanted to cut that by $20 to $30 an hour, which would be similar to what will be paid to some new hires under agreements reached between the UAW and the in-house axle-making operations at Ford and Chrysler.
Local union officials say workers make far less than $73.48 per hour, and that the figure includes retiree health care and other costs that shouldn't be added in.