HR Administration

American Axle Cuts Staff, Boosts India Business and CEO’s Bonus

By Staff Report

Sep. 16, 2011

American Axle & Manufacturing Holdings wants to trim as many as 400 white-collar jobs in addition to about 2,000 blue-collar cuts, even as it expands in India.


Separately, the Detroit driveline supplier’s board more than doubled CEO Richard E. Dauch’s cash bonus for 2007.


The company wants 300 to 400 white-collar workers to take early retirement by August, people familiar with the plan say. If too few sign up, layoffs could follow.


“We are exploring those options,” said spokeswoman Renee Rogers.


On June 27, American Axle’s board approved an $8.5 million cash bonus for Dauch, more than double the $3.9 million he received a year earlier. Dauch got $9.2 million in other compensation. The company said Dauch was rewarded for obtaining a concessionary contract from the United Autoworkers.


A three-month strike by 3,600 American Axle workers ended when the UAW agreed to halve wages and benefits. The company expects to cut 2,000 UAW workers through buyouts, buy-downs and early retirement packages.


American Axle also is accelerating in India. The company confirmed it is building a second axle plant in Pune. The plant is expected to supply Mahindra International Ltd., owned by Mahindra & Mahindra Ltd. and International Truck and Engine Corp., Rogers said.


In October, American Axle and India’s Sona Koyo Steering Systems Ltd. set up AAM Sona Axle Private Ltd. to make light-vehicle axles for Tata Motors Ltd.


Filed by Robert Sherefkin of Automotive News, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.

What’s New at Workforce.com?

blog workforce

Come see what we’re building in the world of predictive employee scheduling, superior labor insights and next-gen employee apps. We’re on a mission to automate workforce management for hourly employees and bring productivity, optimization and engagement to the frontline.

Book a call
See the software

Related Articles

workforce blog

Compliance

Minimum Wage by State in 2023 – All You Need to Know

Summary Twenty-three states and D.C. raised their minimum wage rates in 2023, effective January 1.  Thr...

federal law, minimum wage, pay rates, state law, wage law compliance

workforce blog

HR Administration

Is your employee attendance policy and procedure fit for purpose?

Summary: Lateness and absenteeism are early warning signs of a deteriorating attendance policy. — More ...

compliance, HR technology, human resources

workforce blog

HR Administration

Clawback provisions: A safety net against employee fraud losses

Summary Clawback provisions are usually included as clauses in employee contracts and are used to recou...

clawback provisions, human resources, policy