UAW Workers Strike at Dauch Corp. in Michigan for Better Wages
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: CNBC
- Strike Scale: Nearly 1,000 workers at Dauch Corp.'s Michigan plant have gone on strike due to failed contract negotiations, highlighting significant worker dissatisfaction regarding wages and benefits.
- Wage History: Workers' wages were slashed to $14.50 per hour during the 2008 recession from a peak of $29, with current maximum wages at $22, indicating a pressing need for wage restoration to meet living standards.
- Negotiation Stance: Dauch Corp. expressed disappointment over the strike and emphasized a desire to reach a fair agreement through negotiations; however, union leaders assert they will continue striking until the company responds appropriately, reflecting a tense negotiation atmosphere.
- Production Impact: The strike affects parts production for several GM models, and while GM claims operations are normal, the union believes the automaker's axle inventory can only sustain production for about two weeks, potentially leading to future production pressures.
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Analyst Views on DCH
Wall Street analysts forecast DCH stock price to rise
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Current: 6.550
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About DCH
Dauch Corporation, formerly American Axle & Manufacturing Holdings, Inc., is a global Tier 1 automotive supplier. The Company designs, engineers and manufactures driveline and metal forming technologies to support electric, hybrid and internal combustion vehicles. The Company's product categories include Driveline and Metal Forming. Its Driveline products consist primarily of front and rear axles, driveshafts, differential assemblies, clutch modules, balance shaft systems, disconnecting driveline technology, and electric and hybrid driveline products and systems for light trucks, sport utility vehicles (SUVs), crossover vehicles, passenger cars and commercial vehicles. The Company's Metal Forming products consist primarily of engine, transmission, driveline and safety-critical components for traditional internal combustion engine and electric vehicle architectures including light vehicles, commercial vehicles and off-highway vehicles, as well as products for industrial markets.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Negotiation Stalemate: Since the union initiated a strike against GM supplier Dauch Corp on Sunday, negotiations have not resumed, indicating unresolved differences over wages and benefits as the union chairman noted the company has not reached out to continue discussions.
- Worker Protests: Dozens of Dauch employees have been picketing outside the Three Rivers, Michigan plant since Monday, which primarily produces axles for GM's profitable pickup trucks, and this protest could potentially disrupt production schedules.
- Supply Chain Pressure: The union chairman revealed that GM currently has only about two weeks' worth of axle supply to maintain production, and if negotiations do not reach a swift resolution, it could lead to production halts, impacting the company's overall operations and profitability.
- Wage Demands: The union is pushing for an increase in top wages from the current $22 per hour to over $30, and despite a $4 wage increase since 2008, workers are seeking better treatment regarding work-life balance and healthcare benefits.
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- Strike Action: The United Auto Workers (UAW) announced that workers at Dauch Corp's plant in Three Rivers, Michigan, began striking on Monday, potentially impacting the production of GM's best-selling trucks, particularly the Silverado and Sierra.
- Inventory Status: According to sources, GM currently has about two weeks' worth of axle inventory on hand, which may sustain production in the short term, but prolonged strikes could severely disrupt operations.
- Market Reaction: Following the strike announcement, GM's stock fell approximately 2% in afternoon trading on Monday, while Dauch's shares dropped around 6%, indicating market concerns over potential production halts.
- Wage Dispute: The UAW is pushing for wage increases, highlighting that workers made sacrifices in 2008 to keep the plant operational, with current top wages at $22 per hour, significantly lower than the $29 per hour in 2008, underscoring the urgent need for wage restoration.
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