DETROIT - American Axle & Manufacturing will offer buyout and early retirement packages to the 653 hourly workers at a plant it plans to shutter in Buffalo, the auto supplier announced Tuesday.
The plant closure is a result of lagging demand for mid-sized pickup trucks and sport utility vehicles, the company said in a statement.
American Axle plans to idle the plant, which makes light truck gear, axle and linkage parts, at the end of this year as it reduces U.S. production capacity.
Starting in September, the workers, represented by the United Auto Workers, will have a choice of a monthly incentive if they are within four years of retirement, a $50,000 incentive if eligible to retire, a $70,000 buyout if they have less than 10 years with the company, a $100,000 buyout if they have 10 or more years of seniority, and an early retirement program for those with 10 or more years of service who are 50 but less than 65. Those taking the early retirement option would get their vested pension and health benefits. The company expects to incur expenses up to $85 million for the program.
including pension and other post-retirement benefits.
After the closure, American Axle and its subsidiaries will have eight plants remaining in the U.S. - in New York, Ohio and Michigan.
The company announced the closure during a conference call last month on its second-quarter earnings. The Detroit company reported earnings rose 67 percent on cost cuts and efficiency improvements.
About 25 percent of American Axle's hourly work force, more than 1,400 employees, took previous early retirement and buyout offers, the company said.
Workers in Buffalo who don't accept packages would be eligible for supplemental unemployment benefits through February of next year when the company's contract with the UAW expires, the company said.
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On the Net:
American Axle & Manufacturing: http://www.aam.com
AP-ES-08-14-07 1606EDT
American Axle plans to idle the plant, which makes light truck gear, axle and linkage parts, at the end of this year as it reduces U.S. production capacity.
Starting in September, the workers, represented by the United Auto Workers, will have a choice of a monthly incentive if they are within four years of retirement, a $50,000 incentive if eligible to retire, a $70,000 buyout if they have less than 10 years with the company, a $100,000 buyout if they have 10 or more years of seniority, and an early retirement program for those with 10 or more years of service who are 50 but less than 65. Those taking the early retirement option would get their vested pension and health benefits. The company expects to incur expenses up to $85 million for the program.
including pension and other post-retirement benefits.
After the closure, American Axle and its subsidiaries will have eight plants remaining in the U.S. - in New York, Ohio and Michigan.
The company announced the closure during a conference call last month on its second-quarter earnings. The Detroit company reported earnings rose 67 percent on cost cuts and efficiency improvements.
About 25 percent of American Axle's hourly work force, more than 1,400 employees, took previous early retirement and buyout offers, the company said.
Workers in Buffalo who don't accept packages would be eligible for supplemental unemployment benefits through February of next year when the company's contract with the UAW expires, the company said.
---
On the Net:
American Axle & Manufacturing: http://www.aam.com
AP-ES-08-14-07 1606EDT
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