American Axle & Manufacturing Provides Update on UAW Work Stoppage

DETROIT, March 11 -- On Monday, March 10, 2008, formal negotiations between AAM and the UAW were halted when the UAW sent its negotiators home. The UAW's decision to send its negotiators home extends

AAM is not, and never has been, an OEM. AAM is a Tier 1, Tier 2 and Tier 3 supplier to the automotive industry. Yet, 14 years after the company was founded, AAM continues to work under an uncompetitive OEM-style labor agreement with the UAW.

AAM's "all-in labor costs" at the original U.S. locations covered by this agreement with the UAW are approximately 300 percent of the market rate of its competitors in the United States. AAM's UAW-represented facilities currently affected by the work stoppage are not profitable and have not been for years.

In formal and informal discussions that have occurred for more than two years, AAM has presented the UAW with many alternatives to address the company's need to transition to a market competitive labor cost structure in the United States.

AAM has proposed to make a significant financial commitment to fund retirement incentives, buy-outs and buy-downs to help associates make the transition to a market competitive labor cost structure. This is AAM's preferred approach. This approach would allow AAM to continue operating at the original U.S. locations and retain significant employment at these UAW- represented facilities.

If a market competitive labor cost structure cannot be attained at the original U.S. locations, AAM has advised the UAW that it will consider additional capacity rationalization initiatives.

"AAM remains totally committed to negotiating a fair and equitable agreement with the UAW," said AAM Co-Founder, Chairman & CEO Richard E. Dauch. "AAM and the UAW have a long history of working together in an open, thoughtful and direct manner to resolve labor and economic issues. The parties have made progress in many areas. AAM is prepared to resume formal negotiations with the UAW at any time to find solutions to the critical issues we jointly face."

Renee Rogers of American Axle & Manufacturing, +1-313-758-4882

PRNewswire -- March 11
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Source: American Axle & Manufacturing

Web site: http://www.aam.com/

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2008-03-11 19:29:24 0310181 PRNEWSWIRE