by Nearly 1,000 UAW union workers have gone on strike at the American Axle plant in Three Rivers. Union members claim that wages have never recovered after the deep cuts they agreed to during the 2008 crisis. This strike could affect production of GM’s heavy-duty Chevrolet Silverado and GMC Sierra pickups.
Historical context: Cuts that never came back
Almost two decades after workers agreed to significant wage reductions to save their plant during the Great Recession, about 1,000 union members decided they had waited long enough. Members of United Auto Workers Local 2093 walked off the job at midnight on June 1 after negotiations with American Axle & Manufacturing, now operating as Dauch Corporation at the Three Rivers plant, failed to produce a new agreement by the deadline.
The union launched the strike under the slogan “No contract — no axles,” which is highly fitting given the plant’s role in producing axles for heavy-duty versions of the Chevrolet Silverado and GMC Sierra. According to union representatives, these components ultimately end up on GM’s assembly lines, so a prolonged strike could have serious consequences for the automaker’s production network.
Financial arguments: Profits rise, wages stagnate
At the heart of this conflict are grievances dating back to 2008. During the financial crisis, workers agreed to significant wage concessions to keep the plant operational. According to the UAW, some workers saw their hourly pay drop from around $29 to $14.50.
The union claims these sacrifices were meant to be temporary. Instead, workers say they are still struggling to regain lost ground 18 years later. UAW representatives state that the maximum pay at the plant currently reaches about $22 per hour after a five-year increase, which is significantly below the level that would match inflation today.
Union leaders have also highlighted the company’s financial performance. They claim American Axle has earned approximately $8.4 billion in profit over the last decade, while executive compensation has reached hundreds of millions of dollars. The UAW believes workers deserve a larger share of these profits.
American Axle tells The Detroit Free Press that it remains committed to reaching an agreement. Company spokesperson Christopher Son stated that the supplier is disappointed workers chose to strike and believes the best outcome for all parties can still be achieved through negotiations.
The company added that it intends to continue bargaining in good faith and hopes to quickly reach a fair deal. If the strike drags on, expect supply chain problems for GM. In other words, some extremely expensive pickups will become even more costly due to greedy dealers.
Credit: AAM / UAW
This strike is a vivid example of the ongoing tension between workers and management in an industry where the financial hardships of the past decade led to significant concessions from employees. Now, as companies show substantial profits, workers are demanding fair compensation for their loyalty and sacrifices. The potential impact on GM’s production underscores how vulnerable modern supply chains are, and how labor disputes at the supplier level can have a cascading effect on the entire automotive industry. The situation also highlights a broader debate about the distribution of profits between labor and capital in the post-crisis era, where economic recovery does not always mean wage recovery for all segments of workers.
