GM Axle Supplier Strike Enters Second Week as UAW and Dauch Remain Without Deal

A strike at a key General Motors axle supplier has continued into its second week, raising attention across the U.S. auto industry as union workers and Dauch Corp remain unable to finalize a new labor agreement.

According to Reuters, United Auto Workers Local 2093, which represents about 1,000 workers at Dauch’s Three Rivers, Michigan facility, is still in negotiations with the company. The plant supplies axles and other parts used in General Motors full-size and midsize pickup trucks. Reuters reported that GM said no plants had been affected by the strike as of Monday, June 8, 2026.

Why the Strike Matters

The dispute is important because the Dauch facility plays a direct role in GM’s truck supply chain. Axles are critical components for pickup production, and any long stoppage could create pressure on vehicle assembly if inventories run low.

Reuters reported that GM had about two weeks of axle supply available last week, based on sources familiar with the situation. That means the timing of the strike is being closely watched by workers, suppliers, dealers, and investors.

Union Says Wage Progress Has Been Too Slow

The main labor issue centers on wages and contract terms. Workers at the Three Rivers plant agreed to lower wages in 2008. Since then, the top wage has risen by $4 to $22 per hour, according to union bargaining chairman Josh Jager.

The union is seeking a path to raise top wages to $30 per hour by 2030. Union leaders argue that workers helped the company during difficult years and now want a stronger contract that reflects today’s cost of living and the plant’s importance to GM’s truck production.

Dauch Says Talks Are Continuing

Dauch, formerly known as American Axle, said it remains in close contact with customers during the work stoppage. A company spokesperson also said Dauch continues to hold discussions with the union and hopes to reach a “mutually beneficial” and competitive agreement.

GM Says Production Has Not Been Hit Yet

General Motors said its plants had not been affected by the strike as of Monday. Still, the situation remains sensitive because pickup trucks are among GM’s most important products. If the strike lasts longer, GM may need to manage parts supplies carefully to avoid production delays.

What Happens Next

The next major development will depend on whether the union and Dauch can return to the table with a proposal both sides accept. The union has said it is preparing another proposal, while the company says it wants a market-competitive contract.

For now, the strike remains a test of labor strength, supplier stability, and supply-chain planning in the U.S. auto industry.

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