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American Axle & Manufacturing and UAW to Add Jobs

15 April 1999

American Axle & Manufacturing and UAW to Add Jobs Through Local Sourcing of Machining Process

    DETROIT, April 14 -- American Axle & Manufacturing, Inc.
(AAM) and the United Auto Workers (UAW) Local 846 announce the
ratification of a local operating agreement for future UAW-AAM workers at a
new facility in Cheektowaga, New York.
    The workers will be employed at a 115,000-square-foot facility in
Cheektowaga, which was purchased by AAM earlier this month.  They will perform
machining operations on forgings manufactured at AAM's Tonawanda Forge plant
in Tonawanda, New York.  These operations are currently performed by suppliers
outside the state of New York.
    The hiring of an initial workforce of 120 is expected to begin this
summer, with production starting in late 1999.  According to UAW Region 9
representatives, the wages agreed upon for the machine workers are comparable
with other union wages within the machining industry.
    "This new endeavor is the result of the hard work, commitment and teamwork
of many UAW and AAM officials," said Allan R. Monich, AAM's Vice President of
Human Resources, "We also owe a huge thanks to New York Governor George Pataki
and his economic development team, along with officials from Erie County and
the Town of Cheektowaga for the support they provided in arranging for the new
facility."
    "We are pleased to add jobs to our region," said UAW Region 9 Director
Geri Ochocinska.  "The new wage structure is fair, equitable and based on the
financial investment to which AAM has committed by establishing this operation
in Western New York.  Local and regional UAW leaders agreed up front with the
company's decision to source these operations locally.  This arrangement is a
positive move for all parties."
    AAM Manufacturing Vice President Richard F. (Rick) Dauch said, "Local and
regional UAW leaders have been our partners all along in developing a solid
business case for performing these machining operations in-house.   We expect
this action to result in increased efficiencies and cost savings and we are
all pleased to be able to add jobs to our high-quality workforce."
    "Establishing this new operation has been a great opportunity to support
AAM's growth through a smart sourcing decision," said Wayne Bieger, President
of UAW Local 846.  "We welcome the opportunity to perform these new machining
operations using highly skilled and flexible UAW workers."
    AAM is a world leader in the design, engineering and manufacture of
driveline systems, chassis systems and forged products for trucks, buses,
sport utility vehicles, and passenger cars.  In addition to 12 locations in
the United States (in Michigan, Ohio and New York), AAM has offices and
facilities in Japan, England, Germany, and Scotland and it is currently
building a manufacturing facility and business office in Mexico.