UPDATE 2-UAW urges adoption of Axle deal to angry workers

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By Kevin Krolicki and Soyoung Kim

DETROIT, May 18 (Reuters) - United Auto Workers officials on Sunday urged American Axle & Manufacturing Holdings Inc (AXL.N: Quote, Profile, Research, Stock Buzz) workers to ratify a contract that would cut wages by almost 40 percent, shutter three plants and end a three-month-old strike with a subsidy of $218 million from General Motors Corp (GM.N: Quote, Profile, Research, Stock Buzz).

Some 3,650 UAW-represented workers, including almost 1,900 in Detroit, will vote this week on a four-year contract that would cut hourly pay to between $10 and $26 and offer payments of up to $105,000 over three years for workers who remain.

American Axle, which relies on GM for almost 80 percent of its revenue, would also provide buyouts of up to $140,000 for workers who leave the payroll.

A vote to approve the cost-cutting deal would mark a win for American Axle, which would get many of the concessions it has said it needs, and for GM, where an end to the strike would remove a major uncertainty for investors.

An end to the American Axle strike would cap a series of deals by GM and key affiliates, including former subsidiary Delphi Corp (DPHIQ.PK: Quote, Profile, Research, Stock Buzz), to cut or cap labor costs in the United States and Canada.

Detroit-based American Axle says it needs steep wage cuts to remain competitive with other suppliers, including Dana Holding Corp (DAN.N: Quote, Profile, Research, Stock Buzz), which have come through bankruptcy with sharply lower labor costs.

At a stormy meeting in Detroit on Sunday, UAW officials made a grudging case for the proposed American Axle deal -- revealing details of the proposed contract to hundreds of angry and disgruntled workers who must now decide whether to approve it.