Detroit Axle workers OK possible strike with contract expiring next week

UAW members at Detroit Axle have voted to OK a strike.

The union said in a news release that workers on Wednesday “had voted by a resounding 99% to authorize a strike if necessary.”

Workers produce front and rear axles as well as transmissions for Daimler Truck, and one of the main issues is pay disparity.

Detroit Diesel workers are in the same plant and make $10 more an hour “for the same assembly work,” according to a union video, accusing the company of using “divide and conquer” tactics. The workers are represented by UAW Local 163.

A union flyer says the top assembler wages for Detroit Axle workers in January 2024 were $24.50 per hour, while wages at Detroit Diesel were $34.62 per hour in January 2024 and are set to increase to $36.83 per hour in June 2027.

Anja Weinert, a spokeswoman for parent company Daimler Truck North America, provided a statement highlighting the vote as part of the negotiating process:

“We would like to clarify that the recent vote was a preauthorization vote and is part of the normal negotiations process. The current contract remains in effect until next Friday, Jan. 24, at 11:59 p.m. We are optimistic about reaching a negotiated agreement.”

The company said there are about 400 employees in the bargaining unit.

The company in December announced a $285 million investment at the complex. That project, which garnered incentives of more than $30 million in state grant funding and a tax abatement, was to enhance current production and equip the plant to make electric components for medium- and heavy-duty electric trucks.

The investment was promoted as creating up to 436 jobs and preserving about 2,000 more at the facility in Redford Township and Detroit that supplies parts for the Freightliner, Western Star and Thomas Built Buses vehicle platforms.

A 2023 company news release said the operation dates to 1938 and the formation by General Motors of the GM Diesel Division. Detroit Diesel Corp. was formed in 1988 and acquired by Daimler in 2000.

The company at the time said the operation had produced 1.1 million heavy-duty engines and had almost 3,000 Daimler Truck employees in Detroit.

Laura Dickerson, UAW Region 1A director, said in the union release that “since 2020, Daimler has seen over $17 billion in profits. Daimler can afford to provide UAW members at Detroit Axle what every worker deserves: pay that keeps up with inflation, a safe workplace and a secure retirement. If it takes a fight to win that, our members are ready.”

Zachary Harper, a committeeperson at Detroit Axle, said in the release that “this overwhelming vote shows we are no longer content with the crumbs from Daimler’s pie.”

The contract fight in Detroit follows successful negotiations between the union and company last year.

In May, UAW members at Daimler Truck plants in the South approved a new four-year contract with the company.

That agreement, which covers more than 7,000 workers, averted a strike and included raises of more than 25% and the introduction of profit-sharing and cost-of-living adjustments as it ends a tiered wage system at the truck maker, according to the union.

Contact Eric D. Lawrence: elawrence@freepress.com. Become a subscriber. Submit a letter to the editor at freep.com/letters.