The General Motors plant in Marion has not been forced to lay off any additional workers this week as a result of the ongoing United Autoworkers strike at American Axle & Manufacturing, but more layoffs could be on the horizon, according the local UAW president.
John Pence, president of UAW Local 977, said 469 workers ended up being laid off March 17 as a result of the ongoing labor dispute at the key GM supplier. That number constitutes more than 38 percent of the UAW members in Marion Metal Center. Second-shift work at the plant has been halted as a result.
He anticipates that if there is no resolution to the strike by the middle of this week, more layoffs might be necessary. Pence thinks another 300 UAW members could be laid off beginning Monday and that it could result in the closure of the third shift. He expects to know more by the middle of the week.
Talks between American Axle and the UAW continue. American Axle spokeswoman Renee Rogers told the Detroit News on Friday evening that the two sides were engaged in "ongoing discussions."
Unrelated to the American Axle labor issue, Pence also said Marion's UAW members will receive special attrition packages Wednesday and Thursday as part of the national buyout by GM announced Feb. 12.
People who are temporarily laid off will have packages sent to them at home.
UAW members who decide to accept the buyout offer can sign up anytime before May 22 and will automatically have a seven-day cancellation option from the date they accept the buyout.
Pence had estimated in February that 150 to 200 of Marion's 1,220 UAW members would accept the buyout. He revised that estimate to 250 to 300 on Monday.
One GM executive predicted in February that 20,000 of the 74,000 UAW members in the United States eligible for the buyout would accept.
GM stock traded mostly higher Monday and closed up at $20.38. However, that number is still near the low point of the stock's 52-week range.
In related news, Reuters reported Monday that American Axle CEO Dick Dauch received a 9 percent raise in 2007, bringing his total compensation package to $10.2 million. It includes a base salary, bonus and stock and option awards, according to the news service.
Terms of the buyout
GM has made the following offer to all UAW members:
Retirement-eligible employees or those with 30 years or more of service are being offered a lump sum to retire with full pension and benefits. The sum is $62,500 for skilled workers and $45,000 for production workers.
Workers with between 26 and 29 years of experience can take a leave with reduced pay until their 30th year, when they become eligible to retire with full pension and benefits.
Employees who are at least 50 years old and have at least 10 years at GM can retire early with accumulated pension and benefits.
All UAW employees have been offered a buyout package that does not include pension or health benefits. That package is worth $140,000 to all employees with at least 10 years of service or $70,000 to those with less than 10 years of service.
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