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Strike Could End With 'Buydowns'

POSTED: 2:36 pm EDT May 4, 2008
UPDATED: 3:04 pm EDT May 4, 2008

A deal may be close between American Axle & Manufacturing Inc. and the United Auto Workers. Nine weeks into the strike, there's talk of a proposal for workers to take contract buyouts, or "buydowns," once it ends.

Roughly 1,100 workers could take buyouts consisting of $140,000. Those who stay would be looking at $11 per-hour wage cuts, offset by a $90,000 bonus spaced over three years to ease the transition to lower wages.

The "buydowns" could convince some union voters to accept the concessions.

Wages would be cut to $17 an hour for production workers, $14 for nonproduction workers, and $25.50 for skilled trades workers.

Before the strike, American Axle workers earned $28.15 an hour, with skilled trades at more than $30 an hour.

Negotiations were expected to continue Sunday morning.

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