Detroit: A number of General Motors plants that were forced to idle or shut down production because of an 11-week long strike at American Axle, a parts supplier, will now be able to revert back to their original production schedules.

American Axle and Manufacturing Holdings Inc. and its worker's union, the United Auto Workers, have reached a tentative agreement that should see the return of workers to the assembly lines.(See: GM truck plant idle as American Axle workers strike)

The strike at American Axle had shut down production at plants at General Motors, which made large pick-up trucks and sport-utility vehicles, (See: UAW strike at American Axles shuts GM plant in Detroit)

Though the strike impacted the American auto majors first quarter profits in its home market, the impact was somewhat buffered by the slowdown in auto sales in the country on higher gasoline prices, and a slowing don of the economy.

The deal is set to be ratified through a vote scheduled at one of the plants for Monday, and another at a second plant for three days later. In a statement, UAW President Ron Gettelfinger commended members at American Axle for having displayed extraordinary solidarity during the strike, and said the bargaining committee worked very hard to achieve the tentative agreement. Around 3,650 employees represented by the UAW at five American Axle plants in Michigan and New York were on strike since 26 February.

The announcement of the deal follows an announcement by GM a couple of weeks ago, saying that it would chip in with $200 million to settle the strike, and help fund buyouts. Reports suggest that the deal clincher was an additional $18 million (over the $200 million) from GM during the final hours of negotiations between American Axle and UAW. According to UAW local President Adrian King, the $18 million sweetened the deal enough to send it to vote since the extra money made sure that layoff pay could be part of the deal.

Part of the tentative agreement are proposed buydowns of around $105,000 for workers who decide to stay, and buyouts of around $140,000 for those who decide to leave. The deal also includes wage reductions, closure of a forging plant in Detroit, and a plant forging plant near Buffalo, New York.

Wages at American Axle's Detroit plant would come down from around $28 an hour to between $18.50 and $14.35.

Workers with over 10 years of experience would be eligible for a $140,000 buyout, and those with less than that would possibly get an $85,000 buyout. Workers choosing to stay with the company would get a bonus help them adjust to lower wages, with the maximum buydown bring $105,000 that would be paid over three years. Employees eligible for retirement could choose to retire and receive a pension, along with a $55,000 payment.

At Detroit Gear and Axle, which is also the largest plant on strike, production workers get paid $18.50 or $18.00 per hour, and skilled trades are paid $26 per hour. Non-production factory support workers get paid $14.35 per hour.

For its part, the company will spend between $170 million and $200 million on plant improvements.

New production hires at American Axle would be paid $11.50 an hour, and new skilled trades hires would be paid $22.00 per hour.

All workers are set to get a $5,000 signing bonus when the deal gets ratified, and workers would get 2 per cent of their annual earnings as annual performance bonuses in March, each year. Workers would also get a $500 Christmas bonuses, starting in 2009.

The deal will see American Axle shell out more for health care contributions by 3 per cent in 2010, and 3 per cent each year thereafter. Workers would have to pay higher co-pays and deductibles.