The United Auto Workers (UAW) have reached a significant agreement at American Axle's Three Rivers facility, potentially bringing an end to a 10-day strike at a critical General Motors supplier. The deal promises higher wages for union members and marks a major victory for the UAW.
Members from UAW Local 2039 at American Axle, also known as Dauch Corporation, were joined by UAW President Shawn Fain during a social media livestream announcement. Although the contract details are not yet public, Josh Jager, the bargaining chair for Local 2093, stated that the company has agreed to meet the union’s demands for better pay and more time off.
"I am damn proud of this agreement, and I am damn proud to be a member of UAW Local 2093," Jager said during the livestream.
The new contract includes several key benefits:
- At least $30 an hour for every worker on the floor (the previous highest wage was $22 an hour)
- No increase in healthcare premiums
- Two extra holidays: Martin Luther King Jr. Day and Veterans' Day
- More time off around Christmas
- Nine additional days of yearly vacation
- Improved safety measures
- A $2,000 bonus to be issued once the contract is ratified
The tentative agreement will now be presented to the membership for review and a vote on whether to ratify the deal and return to work.
This agreement brings an end to a difficult strike for both American Axle and General Motors. Approximately 1,000 workers in Three Rivers had threatened to disrupt the supply chain for key parts used in building heavy-duty Chevrolet Silverados and GMC Sierras. GM dealers have indicated that these vehicles are some of their most profitable models.
Backstory
As the strike continued at American Axle, tensions grew for General Motors. The situation highlights the ongoing challenges faced by workers in the automotive industry, particularly with regard to wages and working conditions.
Employees at the plant walked out at midnight on May 31 after failing to agree on the terms of a new contract. The union cited stagnant wages at the axle manufacturing plant, especially after employees voluntarily took pay cuts during the Great Recession in 2008 to keep the plant open.
In 2008, the plant was nearly shut down when the union and the company agreed to significantly reduce wages. Overnight, the highest wage on the shop floor dropped from $29 an hour to just $14.50.
Before the latest strike, the highest wage on the shop floor was $22 an hour. If the union ratifies the new deal, $30 an hour will become the lowest wage for union members at American Axle by 2030.
Other Developments
The agreement at American Axle is part of a broader trend of UAW victories in recent months. In February, the union ratified its first contract at the newly organized Volkswagen Chattanooga Assembly plant following a lengthy negotiation process. The UAW has also been organizing new supplier plants in Michigan since early 2026.
Earlier this month, the union announced that about 300 workers at Schnellecke Logistics, a supply chain logistics warehouse in Chattanooga, Tennessee, would be joining the UAW.
Chris Son, a spokesperson for American Axle/Dauch, expressed satisfaction with the outcome in an email to the Detroit Free Press.
"We are pleased to have reached a tentative agreement with UAW Local 2093 at our Three Rivers Manufacturing Facility," Son said. "We appreciate the efforts of both the UAW and Dauch labor negotiations teams to find common ground."
Fain, while announcing the deal, emphasized the union’s commitment to supporting any UAW member who wants to negotiate contracts effectively.
"We don't have a magic bullet," Fain said. "But we do have a badass department of bargaining strategists that is ready and willing to help you take on corporate greed."
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