American Axle shares jump on UAW progress report

DETROIT (Reuters) - Shares of American Axle & Manufacturing Holdings Inc (AXL.N: Quote, Profile, Research) shot up as much as 15 percent on Thursday after a published report that the parts supplier and the United Auto Workers union had agreed on the framework for a contract deal after a two-month strike.

The Detroit Free Press reported that the settlement would include offers of buyouts to existing American Axle workers in exchange for lower wages for remaining workers and the closure of at least two of the company's five U.S. plants.

The newspaper, citing people familiar with the negotiations, reported that hourly wages at American Axle would be cut as low as $14 per hour, from $28 per hour under the past contract.

American Axle spokeswoman Renee Rogers said the company's talks with the union were "moving forward," but declined to provide any details.

A UAW spokesman was not immediately available for comment.

American Axle shares were up $2.77 or 13.8 percent to $22.91 in afternoon trading on the New York Stock Exchange after trading as high as $23.21 earlier.

About 3,650 workers represented by the United Auto Workers union went on strike at plants in New York and Michigan on February 26 after the union and the company failed to reach an agreement.

Detroit-based American Axle has said it must cut wages and benefits that it claims run three times higher than those of competitors, a demand that the UAW rejected.

American Axle and the UAW have been negotiating almost daily since April 9, when contract talks resumed. They had been stalled for nearly a month while the two sides sparred over financial details.