UAW local ratifies new deal at Dauch’s Michigan axle plant
UAW Local 2093 has ratified a new four-year collective bargaining agreement with Dauch Corporation, ending a ten-day strike at the company’s Three Rivers Manufacturing Facility in Michigan. Workers began returning to their positions on June 15, allowing regular operations to resume.
The agreement raises top hourly pay from US$22 to US$30 by 2030, a 36% increase, and includes improvements to vacation and holiday entitlement with no increases to healthcare premium costs. Workers who were employed at the plant before 2008 — when pay was cut from as much as US$29 an hour to US$14.50 during the financial crisis — will receive an immediate US$8 an hour increase upon ratification rather than a gradual progression. A US$2,000 ratification bonus and a US$1,000 bonus after the first year are also included.
The dispute centred on wages that the UAW argued had never recovered from concessions imposed during the 2008 downturn, when the plant was owned by American Axle & Manufacturing — the predecessor company that rebranded as Dauch Corporation in January 2026. The current top rate of US$22 represents roughly half the real-terms value of pre-crisis wages when adjusted for inflation. Around 1,000 workers walked off the job at midnight on 31 May after their contract expired without a new agreement.
Negotiations were at times fractious. After an initial period with no engagement from Dauch, talks advanced in the second week before collapsing when UAW bargaining chair Josh Jager said the company submitted a written proposal that contradicted verbal understandings reached at the table. Progress resumed following that breakdown, with talks accelerating after workers rejected Dauch’s offer to raise pay to approximately US$26 an hour by contract end as insufficient.
The Three Rivers plant supplies axles to General Motors’ pick-up truck facility in Flint. GM had acknowledged it held roughly two weeks of inventory before the strike would disrupt production. “Tonight, after 18 years of sacrifice, these workers are finally winning back a big chunk of what was taken from them,” said UAW President Shawn Fain at the time of the deal’s announcement.
Why this matters:
•The 2008 wage concessions being partially reversed 18 years later is the labour story, not the strike itself.Workers who accepted cuts from as much as US$29 to US$14.50 an hour to keep the plant open during the financial crisis will receive an immediate US$8 increase on ratification, with top pay rising to US$30 by 2030. That trajectory—concessions extracted under duress during a crisis, recovered over nearly two decades through sustained organising—is the frame through which Fain is deliberately positioning this outcome, and it is a compelling one for the UAW’s broader recruitment and bargaining strategy heading toward the 2028 coordinated contract expiry.
•The GM supply chain exposure was the commercial pressure point that resolved this.Dauch’s Michigan plant supplies axles to GM’s Flint pick-up facility, and GM held roughly two weeks of inventory when the strike began. A buffer measured in days rather than weeks is a structural vulnerability in just-in-time manufacturing, and the speed with which talks accelerated once the US$26 counter-offer was rejected suggests Dauch understood that timeline as clearly as the UAW did. The settlement removes an immediate supply risk, but the underlying question of how much leverage single-source supplier strikes give the UAW over OEM production schedules remains relevant across the ongoing disputes at Dana, Magna and Bridgewater Interiors.
•Fain’s internal credibility problem did not go away with the Three Rivers win.The independent monitor’s findings of retaliatory behaviour toward two senior elected officers represent a governance challenge that a successful strike outcome softens but does not resolve. For an official who has staked the UAW’s entire strategic direction on confrontational bargaining and coordinated action toward a potential 2028 general strike, leadership dysfunction at the top of the organisation is the kind of distraction that can erode the credibility the Three Rivers result was meant to build.
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Originally posted on: https://www.automotiveworld.com/news/uaw-local-ratifies-new-deal-at-dauchs-michigan-axle-plant/