UPDATE 5-UAW strikes American Axle as talks collapse
(Adds comment on timetable for resumption of talks, updates share price)
DETROIT, Feb 26 (Reuters) - The United Auto Workers union went on strike against American Axle & Manufacturing Holdings Inc (AXL.N) on Tuesday, rejecting demands for steep wage cuts from the parts supplier in a move that could threaten production at General Motors Corp (GM.N).
The strike -- the third called by the union against a U.S. automotive company in the last six months -- began just after midnight as a four-year contract expired. The walkout affected some 3,600 workers and shut down American Axle plants in Michigan and New York.
Shares of American Axle were almost flat in early trade. Wall Street analysts said the company's hard line pointed to the potential for it to win deep savings from the union.
Statements from both sides also underscored sharp divisions despite weeks of bargaining centered on wages, benefits and whether the Detroit-based company is committed to keeping production in the United States.
American Axle said in a statement that it wanted to recoup more than $3 billion in investment in U.S. plants by cutting hourly labor costs closer to rates of $20 to $30 per worker from nearly $70 currently.
UAW officials said American Axle had failed to provide the financial information the union requested and repeatedly threatened to move production to Mexico in the absence of sweeping concessions.
More immediately, analysts have said a prolonged strike against American Axle could disrupt production of trucks and sport utility vehicles by GM. The No. 1 U.S. automaker accounts for nearly four-fifths of American Axle's revenue.
American Axle had stockpiled parts for GM in advance of the strike, but it was not clear how many days that would last.
American Axle workers in Detroit walked off the job shortly after midnight. Dozens quickly formed picket lines at the factory gate, trudging through a blanket of snow and carrying signs that read "Unfair Labor Practices" and "UAW on Strike."
Contract talks broke off Monday with major issues unresolved, including proposed wage cuts and reductions in health care coverage for future retirees, the UAW said.
Union officials briefed on the talks said American Axle had proposed closing four facilities: a forging operation in its Detroit plant, two New York-based plants and a now-idled facility nearby in Buffalo. That move would cut over 700 jobs.
The UAW accused American Axle of unfair labor practices and local union officials said the company was bargaining in bad faith, possibly setting the stage for a federal complaint that could make it harder for the company to hire replacement workers if the two sides cannot reach a deal.
"Our members cannot be expected to make the extreme sacrifices American Axle is asking for with nothing in return," UAW President Ron Gettelfinger said in a statement.
American Axle spokeswoman Renee Rogers said that there was no schedule for resuming negotiations, but added that the company's bargaining team was ready to return to the table. Continued...
