Analysts quoted by the US Automotive Digest Weekly say that General Motors, already facing fresh Chapter 11 exit finance costs for its former subsidiary Delphi following the withdrawal of a private equity group funding, has agreed to pay up to $200m to end an ongoing strike over pay, condition and job losses by around 3,600 UAW members at its spun-off Tier 1 supplier American Axle & Manufacturing, Inc.
Financial support is reportedly to be used for temporary payments to supplement reduced wages, according to an SEC filing, and to fund AAM buyout and early retirement packages to be offered.
GM production has been subjected to layoffs at 30 US plants affected by disrupted AAM supplies. A separate SEC filing from American Axle says any aid accepted from GM, its largest customer, would be contingent on an early halt to the UAW strike which began on 26th February this year.
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