Dauch strike continues as UAW-GM supplier talks remain stalled in Michigan
A strike at Dauch's axle plant in Three Rivers, Michigan, is continuing without renewed contract talks, raising pressure on a key supplier for General Motors' profitable pickup truck operations. The walkout involves about 1,000 union workers, and GM says its truck production is still continuing while the company and the union remain apart on wages, benefits and work-life balance issues.
Highlights
- Dauch's UAW strike began Sunday with no resumed negotiations, jeopardizing GM’s heavy-duty pickup production reliant on the Three Rivers axle plant.
- GM's Flint truck facility has about two weeks of axle inventory, while 250 salaried Dauch employees are maintaining limited production amid the walkout.
- The dispute centers on UAW demands for wages above $30 per hour, up from the current $22, healthcare preservation, and improved work-life balance.
Contract dispute and supply risk
As reported by Reuters, negotiations between Dauch and the United Auto Workers have not resumed since the union launched its strike on Sunday, according to Josh Jager, bargaining chairman for UAW Local 2093. Jager said the union handed the company a contract proposal on Sunday night and that Dauch has not called to restart talks.Jager, a 24-year employee at the plant, said dozens of workers have been picketing since early Monday outside the Three Rivers axle facility. He said the plant supports production of GM pickup trucks, with most axles from the site sent to GM's heavy-duty truck plant in Flint, Michigan.
Dauch, formerly known as American Axle, does not immediately respond to a request for comment. Jager and other sources say GM has about two weeks of axle supply to keep production going, while the union has seen about 250 salaried workers entering the plant to make axles.
Wage demands and broader labor pressure
A GM spokesperson says truck production continues on Tuesday despite the strike at the supplier facility. The dispute centers on union demands for wage increases, preservation of healthcare benefits and changes to improve work-life balance.Jager says workers made wage concessions in 2008 and that top pay has risen by only $4 since then, to $22 per hour. The union is seeking top wages above $30 per hour, setting up a standoff that could test supply resilience if the stoppage continues.
In our earlier coverage of the April JOLTS report, we highlighted that U.S. job openings jumped to 7.6 million, the highest level since May 2024, signaling firmer labor demand even as hiring slowed. We also noted that quits and layoffs remained subdued, reinforcing a cautious “low-hire, low-fire” backdrop that the Federal Reserve watches closely when weighing whether to keep rates steady.
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