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
Analysts have said the UAW's agreements with GM, Chrysler and Ford Motor Co (F.N) provide a template for cost-cutting agreements at American Axle, which pays wages and benefits on par with those at the major automakers.
American Axle was spun off from GM in 1994 when Chief Executive Dick Dauch bought five GM axle plants, and its wage structure still reflects terms the UAW had negotiated with the No. 1 U.S. automaker.
American Axle pays its hourly workers wages and benefits totaling about $65 per hour, roughly equivalent to the top wage for the three Detroit automakers.
Dauch told financial analysts in January that his goal was to bring wages down to between $20 and $38 per hour, depending on whether workers were in "commodity" production roles or skilled trades.
Like other U.S. auto parts suppliers, American Axle has looked to expand production in emerging markets as it seeks cost reductions in the slumping North American market.
UAW negotiators had proposed a "wage bridge" that would allow lower-tier new hires to eventually make higher wages, union officials briefed on the talks said.
For its part, American Axle has floated the idea of permanently closing facilities including a forging operation inside its Detroit production complex that employs about 300 workers, officials said.
The UAW contract covers about 3,650 workers at facilities in Detroit and Three Rivers, Michigan; Tonawanda and Cheektowaga, New York; and a Buffalo, New York, plant idled in late 2007.
Nearly 560 Buffalo workers agreed to take buyouts or other separation deals at the Buffalo plant. They are not included in the total figure. Other UAW-represented facilities at American Axle are covered under a different agreement that does not expire on Tuesday. (Reporting by Kevin Krolicki; Editing by Gary Hill & Valerie Lee)
