By Mark Scott
Buffalo, NY – American Axle & Manufacturing will offer buyout and early retirement packages to the 653 hourly workers at its soon-to-be-closed Buffalo plant.
American Axle plans to idle the plant, which makes light truck gear, axle and linkage parts, at the end of this year as it reduces U.S. production capacity. The company said in a statement that the closure is a result of lagging demand for mid-sized pickup trucks and sport utility vehicles.
Starting in September, the workers, represented by the United Auto Workers, will have a choice of a $50,000 incentive if eligible to retire or a $70,000 buyout if they have less than 10 years with the company. That increases to $100,000 for employees with 10 or more years of seniority.
Those taking the early retirement option would get their vested pension and health benefits.
After the closure, American Axle will still operate two plants -- one in Cheektowaga and the other in Tonawanda.
Workers in Buffalo who don't accept packages would be eligible for supplemental unemployment benefits through February of next year when the company's contract with the UAW expires.