Stock Markets June 2, 2026 11:30 AM

UAW Walkout at GM Axle Supplier Persists as Talks Remain Paused

Strike at Dauch Corp. plant in Three Rivers halts talks; union outlines pay, scheduling and benefits priorities

By Jordan Park GM

A strike by United Auto Workers members against axle supplier Dauch Corp. entered its third day with no negotiations resumed, union leaders said. The plant in Three Rivers, Michigan, which supplies axles primarily to GM's heavy-duty truck production, has picketing in place while management has not yet responded to the union's contract proposal.

UAW Walkout at GM Axle Supplier Persists as Talks Remain Paused
GM

Key Points

  • Negotiations between Dauch Corp. and the UAW have not resumed since the strike began on Sunday; the union delivered a contract proposal Sunday night.
  • The Three Rivers axle plant supplies a majority of its axles to GM's Flint heavy-duty truck plant; GM is estimated to have about two weeks of axle inventory.
  • The union seeks higher wages, improved work-life balance, and preservation of healthcare benefits; top wages currently at $22 per hour after prior increases, with a goal above $30 per hour.

DETROIT, June 2 - Negotiations have not resumed between an axle supplier to General Motors and the United Auto Workers since the union initiated a strike on Sunday, according to a local UAW bargaining official.

Josh Jager, bargaining chairman for Local 2093 and a 24-year employee at the Three Rivers, Michigan facility, said on Tuesday that Dauch Corp. has not contacted the union to restart talks. The union delivered a contract proposal to the company on Sunday night, Jager said.

"They are on the clock, they are under the gun but their finger is not on the trigger yet," Jager said, describing the company's posture as the picket line remained in place.

Dozens of Dauch employees were picketing beginning early Monday outside the axle plant, which supports production of General Motors pickup trucks. Jager described the Three Rivers facility as a key source of axles for the automaker's heavy-duty trucks, saying a majority of axles manufactured there are shipped to GM's Flint, Michigan, heavy-duty truck plant.

On supplies, Jager and other sources cited an estimate that GM has roughly two weeks of axle inventory on hand to continue production. Meanwhile, the union reported about 250 salaried employees entering the plant to continue producing axles despite the strike.

A GM spokesman confirmed that truck production continued on Tuesday.

The union's stated priorities in the contract talks include higher wages, improvements to work-life balance, and preserving existing healthcare benefits. Jager noted the history of wage concessions, saying workers accepted wage reductions in 2008 and that the top wage has since risen by $4 to reach $22 per hour. The union is seeking top wages above $30 per hour.

Dauch, which previously operated under the name American Axle, did not immediately respond to a request for comment.


Context and implications

The strike has localized operational consequences at the Three Rivers plant, where picketing has limited regular staffing. Union leadership has advanced specific compensation and benefits demands, and the company has so far not signaled a willingness to reconvene bargaining sessions. GM has maintained production for now, supported by existing axle inventories and salaried staff efforts.

Risks

  • Production disruption risk for GM's heavy-duty truck assembly if the strike persists beyond the estimated two weeks of axle supply - impacts automotive manufacturing and supply chain segments.
  • Labor-management impasse risk while the company has not called to resume negotiations, which could extend operational uncertainty at the supplier plant - impacts regional manufacturing employment and parts suppliers.

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