Detroit (WWJ) -- American Axle says there are now two major issues stalling the talks on a new contract that would end a 78-day strike by the United Auto Workers union. The disagreements are over health care benefits and unemployment pay.
American Axle said the talks have been stalled since late Sunday.
"There are very few remaining issues separating the parties from reaching agreement,'' the company said in a statement released Tuesday afternoon.
American Axle said the UAW wants the company to continue providing a health care plan that would cost double the rate of plans at competing UAW-represented suppliers. American Axle also says the UAW wants the company to pay wages and benefits for workers who are laid off, a benefit that isn't offered at competing suppliers.
"Paying associates who are not working is an uncompetitive burden that American Axle cannot bear if it is to compete successfully in the U.S. market and earn new or replacement business,'' the company said.
A phone message seeking comment was left for UAW spokesman Roger Kerson.
The strike by 3,650 workers at five plants in Michigan and New York has crippled General Motors Corp., which is American Axle's biggest customer. GM says the strike has affected 34 plants and decreased production by 230,000 vehicles through April. The strike cost GM $800 million in the first quarter.
There had been hope for a settlement after GM's surprise announcement last Thursday that it would throw in $200 million to help end the walkout. But that offer was contingent on a quick resolution of the talks.
This past weekend, UAW President Ron Gettelfinger told WWJ's Jeff Gilbert talks were progressing well until the company offered a proposal to close a third plant.
Stay tuned to WWJ for the latest developments on this story.
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