UPDATE 2-American Axle-UAW talks stall, strike plans set
(Recasts, adds detail, background)
DETROIT, Feb 25 (Reuters) - Contract talks between American Axle & Manufacturing Holdings Inc. (AXL.N) and the United Auto Workers were stalled on Monday, with the union's contract set to expire, leaving local bargaining units preparing to strike.
Union officials briefed on the talks said that talks between the two sides have snagged on the union's proposal to create a "wage bridge" that would allow lower-paid new hires to earn more with eventual seniority.
Another sticking point was Detroit-based American Axle's proposals to shutter facilities, said the officials, who asked not to be named.
American Axle spokeswoman Renee Rogers said talks between the two sides were continuing as of late Monday evening.
Analysts have said a prolonged UAW strike against the Detroit-based company has the potential to disrupt production of trucks and sport utility vehicles by General Motors Corp (GM.N), which ranks as the supplier's largest customer.
The UAW's current contract covering more than 3,000 union-represented workers in Michigan and New York expires at midnight Eastern Time (0500 GMT).
With the chance of a work stoppage looming, American Axle has stockpiled parts for GM, which accounts for most of its sales.
On a Web site associated with a hard-line faction within the UAW, one commentator urged American Axle workers to prepare for a prolonged strike.
"This is the big fight, so if you don't want to end up living the rest of your life in poverty, be prepared to do whatever it takes to achieve victory," American Axle worker L. Anthony Overfield said in a Monday posting on the Future of the Union Web site.
"This includes striking for up to three months to protect our jobs and our families," he said.
UAW local officials said they were preparing to escort workers out of American Axle plants just before midnight and begin manning picket lines outside plants in Michigan and New York unless otherwise instructed by negotiators.
The UAW called brief strikes against GM and Chrysler LLC last year in a historic round of contract talks with the Detroit-based automakers that resulted in deals to sharply cut their labor costs as they attempt to return to profitability.
The union has also negotiated buyouts and early retirements with the automakers intended as a way to move higher-paid workers out of those jobs, while protecting their pension and retiree health care in most cases.
COST-CUTTING TEMPLATE Continued...
