AAM strike wreaks financial havoc — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

AAM strike wreaks financial havoc

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The ongoing strike that began in February by workers at five American Axle and Manufacturing Holdings (AAM) plants in Michigan and New York has led Standard & Poor’s Ratings Services (S&P) to review AAM’s credit rating.

S&P will also review ratings for General Motors, plus auto suppliers Lear Corp. of Southfield and Tenneco Inc., based in Lake Forest, Ill.

Credit analyst Robert Schulz says S&P believes the strike has gone on long enough to “possibly begin to affect the financial resources of GM and those suppliers most exposed to the automaker.”

The United Auto Workers’ (UAW) strike against AAM has forced the closure of all or part of 28 GM plants, affecting more than 37,000 hourly workers. It has caused thousands more layoffs at other GM suppliers, including Lear and Tenneco.

The UAW says AAM has asked for wage cuts of roughly 50%.

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