American Axle and Manufacturing’s plans to request a property tax abatement for its new Oxford Forge facility (2300 X-Celsior Drive) were put on hold this week as union activists target the Detroit-based corporation for allegedly attempting to get around its contract with the United Auto Workers.
‘We would like to withdraw our pending request for the creation of an Industrial Development District (IDD),? wrote Dawn Uranis, a representative of American Axle’s Government Relations and Administration, in a Feb. 11 letter to Oxford Township.
American Axle was requesting an IDD be created so it could be eligible for ‘a partial exemption from personal property taxes for a period of up to 12 years.?
A public hearing regarding American Axle’s request is still scheduled for the Feb. 13 township board meeting.
The corporation ‘apologized for any inconvenience? and promised to ‘reimburse the township for any costs incurred relative to this public hearing.?
Officially, American Axle claimed its decision was prompted by its inability at this point to provide any hard numbers in order to make its case to the township board.
‘In preparing our presentation relative to the request, we determined that our business case is such that we cannot commit to firm job creation or investment numbers at this time,? Uranis wrote.
But it appears pressure from the UAW and a potential face-to-face confrontation with union activists at the township board meeting might have been the real reason behind the withdrawal.
‘Many of you may have heard American Axle has bought an empty plant in Oxford, Mich. and is moving work there from union plants to non-union $10 an hour labor. This after just closing a union plant in Buffalo, N.Y.!,? wrote longtime UAW activist and former Detroit Local 235 presidents Wendy Thompson in a Feb. 9 message posted on the pro-labor website www.futureoftheunion.com. ‘Now we hear they are requesting a tax abatement! Rub salt in the wounds, shall we??
American Axle denied its withdrawal had anything to do with union-related issues.
‘The withdrawal was done for the reasons cited in the letter (from Uranis),? said Renee Rogers, spokesperson for American Axle.
Rogers stated the corporation had no comment regarding Thompson’s internet message.
‘We simply don’t comment on ongoing negotiations ? it’s private and I think by law, we can’t,? she said.
American Axle is currently negotiating with the UAW as its master agreement is set to expire at 11:59 p.m. Monday, Feb. 25.
The corporation is pushing the union for a new master agreement that would eliminate the last remnants of the old labor contracts and allow for the hiring of new employees with significantly decreased wages and less benefits.
When asked if the Oxford Forge plant will be part of the negotiations, Rogers replied, ‘I couldn’t say. Our negotiations are with our master agreement plants.?
Because it’s a new facility, Oxford’s not part of American Axle’s existing master agreement with the UAW.
American Axle purchased the vacant 90,000-square-foot plant at 2300 X-Celsior Drive on Sept. 4, 2007. Since then, the company has reequipped the facility to meet its manufacturing needs and plans to reopen it in March.
‘I’m thinking sometime towards the end of next month,? Rogers said. ‘I’m not real sure.?
No one from American Axle has ever stated on the record exactly how many jobs the Oxford plant would create, but sources close to the situation previously indicated it could eventually be staffed by up to 200 employees.
Township officials were surprised by American Axle’s last-minute withdrawal.
‘Before they were all gung-ho about it, then all of a sudden, they pull back,? said township Treasurer Joe Ferrari, who’s publicly stated his opposition to giving tax abatements. ‘I was like ‘What’s going on here???
Despite the official reason given to the township, it appears the corporation’s decision to withdraw its abatement request may have been motivated by Thompson’s internet call-to-arms among local union members.
Thompson called on UAW members in the Oxford area and throughout Oakland County to sign a petition urging township officials to deny American Axle’s abatement request.
‘If you are an AAM worker or a UAW member from Local 5960 (in Orion Township), Local 594 and Local 653 (in Pontiac) or know people who are, we would like these petitions to be taken into the plants and circulated,? Thompson wrote.
Ferrari said Thompson contacted him Monday afternoon and told him American Axle was basically ‘looking at moving around jobs rather than creating jobs.?
‘That’s kind of what I got out of it,? he said. ‘But I don’t know how much of this stuff is fact or fiction.?
According to the treasurer, Thompson indicated she and others who oppose giving American Axle any tax abatements are still planning to attend the Feb. 13 township meeting and voice their opinions.
American Axle is still planning to request a tax abatement at some point in the future.
‘Once we have confirmed our job creation and investment numbers, we will resubmit our request at a later date,? Uranis wrote.
Founded in 1994, American Axle designs, engineers, tests, validates and manufactures driveline, drivetrain and chassis systems, related components, and metal formed products for light trucks and buses, sport utility vehicles, crossover vehicles, and passenger cars.
American Axle already has one facility in Oxford ? MSP Industries located at 45 W. Oakwood Rd.