UAW, Dauch Corp reach tentative strike deal

The United Auto Workers has reached a tentative contract agreement with Dauch Corp following a 10-day strike at the company’s axle plant in Three Rivers, Michigan. The walkout targeted a key supplier to General Motors’ (GM) full-size and midsize truck operations, raising concerns over potential disruptions to vehicle production.

Under the union’s procedures, the agreement is not yet in force. Members of UAW Local 2093 at the Three Rivers facility will now review and vote on the proposed contract. The union has stated that the strike will remain in effect until the membership ratifies the deal.

A central feature of the tentative agreement is a commitment to raise the top wage rate at the plant to $30 per hour by 2030. Union officials describe this as a more than 36% increase over four years, highlighting the scale of the pay improvement for the highest-paid workers over the life of the deal.

This wage progression is aimed at significantly lifting earnings for employees at the axle plant while setting a clear timetable through the end of the decade. The structure of the increase, beyond the final 2030 target and total four-year percentage gain, was not detailed in the available information.

In addition to wage increases, the tentative contract includes several non-wage provisions. Health-care premiums are set to remain unchanged for the life of the agreement, providing cost stability for workers who receive health benefits through the company.

The deal also adds Martin Luther King Jr. Day and Veterans Day as paid holidays. Employees with at least one year of seniority are slated to receive additional vacation time, expanding paid time off for a segment of the workforce at the Three Rivers plant.

Ratification bonuses form another component of the package. Under the agreement, workers would receive a $2,000 payment at ratification and an additional $1,000 bonus at the one-year anniversary of the contract, if the deal is approved by the membership.

Dauch Corp, formerly known as American Axle, supplies axles from the Three Rivers facility to General Motors’ (GM) full-size and midsize truck lines, making the plant an important link in GM’s supply chain. Despite the 10-day strike, GM stated that as of earlier on the day the deal was announced, its production had not been impacted.

The absence of an immediate production effect suggests that, to this point, GM’s truck output has continued without reported interruption. The ratification process at UAW Local 2093 will determine when the strike formally ends and normal operations at the Three Rivers axle plant resume.