Picketing began at 6 a.m. Monday at the facility, where members of UAW Local 2093 stopped production at 12:01 a.m. after their existing contract expired. The union authorized the walkout in May following breakdowns in negotiations with Detroit-based American Axle, which union officials cited for “failing to offer a fair contract before the expiration deadline.”
“No contract, no axles,” the union said in a statement posted online.
UAW President Shawn Fain joined Local 2093 members on Sunday to announce the impending strike. He said the action responds directly to what he described as the company’s refusal to restore compensation lost during the financial crisis.
“For 18 years, these members have built you an empire of profit while getting treated like dirt,” Fain said during a Sunday livestream video. “They’ve taken wage cuts, benefit cuts, they’ve poured their souls into this plant, they missed birthdays, graduations, time with their families, to provide this company with axles, to keep this company and several auto assembly plants running.”
The union detailed the financial history of the plant in a public statement. In 2008, workers accepted major concessions to prevent the facility from closing during the Great Recession. According to the UAW, long-time employees who were earning as much as $29 per hour in 2008 saw their base pay slashed to $14.50 per hour.
Eighteen years later, the UAW said workers are still recovering that lost ground. Current wages at the American Axle plant top out at $22 per hour following a five-year progression, the union said, leaving inflation-adjusted earnings at roughly half of their pre-2008 levels.
The union contrasted those wages with the company’s financial performance and executive compensation. American Axle has generated $8.4 billion in profits over the past decade, the UAW said. During that same period, the company’s chief executive officer received $111 million in compensation, and the top five executives collectively took home nearly $231 million.
American Axle operates as a Tier 1 parts supplier for General Motors. The Three Rivers facility manufactures axles and drivetrain components for the Chevrolet Silverado and GMC Sierra pickup trucks.
The strike impacts a regional workforce and a key node in the domestic truck supply chain. Local 2093 members voted to authorize the walkout in May, setting the stage for the midnight production halt after negotiations failed to conclude before the contract deadline.