DETROIT
03/08/2012 09:06 am ET

UAW Sues American Axle Over Pact

BY DAVID SHEPARDSON, THE DETROIT NEWS

The United Auto Workers has sued American Axle & Manufacturing Inc., claiming the auto supplier isn't following its contractual obligation to provide pension, insurance and other benefits to laid-off workers.

The union said the Detroit-based company -- which closed its factories in Detroit and Cheektowaga, N.Y., last month -- wasn't adhering to its contract, which requires the company to pay early retirement pensions for employees laid off when a plant is closed.

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