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American Axle says UAW refuses mediator in talks

Sun Apr 13, 2008 8:44pm EDT

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DETROIT, April 13 (Reuters) - American Axle & Manufacturing Holdings Inc (AXL.N) said on Sunday the United Auto Workers had rejected a company effort to bring in a federal mediator to assist the two sides in reaching an agreement to end a nearly seven-week strike in the United States.

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American Axle and the UAW resumed full talks last week and have continued negotiating over the weekend. About 3,650 UAW-represented workers have been on strike at five American Axle plants in Michigan and New York since Feb. 26.

The auto parts maker said it was disappointed the union refused impartial assistance in trying to reach a settlement.

UAW President Ron Gettelfinger said the union had conversations with a representative of the Federal Mediation and Conciliation Service, but that enlisting a federal mediator would add little at this point in the negotiations.

"In fact, it would place the mediator in a no-win situation," Gettelfinger said in a statement.

The walkout at American Axle has also forced the idling or partial idling of about 30 General Motors Corp GM.N plants in North America because of parts shortages. GM accounts for about 80 percent of American Axle's annual revenue.

American Axle has said its wages and benefits at the plants run about three times that of rivals and it must have deep concessions to maintain the operations, bid successfully for new business and make capital improvements.

Talks between American Axle and the union had been stalled for about a month, while the sides sparred over financial details. The resumption of talks last week was seen as a potential breakthrough.

The UAW delivered a new financial proposal to American Axle when full talks resumed. American Axle rejected the offer as only a slight improvement, but delivered a proposal of its own to the union on Friday. (Reporting by David Bailey; Editing by Louise Heavens)



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