May 18 (Bloomberg) -- American Axle & Manufacturing Holdings Inc. will pay workers $10 to $26 an hour at plants in Detroit and New York to end an 11-week strike that halted some production at General Motors Corp. plants in North America.

The automotive-parts supplier will also offer buyouts of $140,000 for workers who have been there 10 years or more, according to the proposed agreement handed out at a United Auto Workers meeting in Detroit today. American Axle will pay a maximum of $105,000 over three years to workers to ease them into lower salaries. Senior workers will be offered early retirement.

The agreement, which will be voted on by union members at plants in New York and Michigan tomorrow, marks the first step in getting the supplier's operations in the U.S. running again. General Motors, the world's largest automaker, has stopped or cut back production at 30 plants in North America due to the parts shortage from American Axle.

American Axle had said it hoped to cut hourly wages, including the cost of benefits, to $20 to $30 from $73.48 to keep its U.S. operations competitive. Wages will be cut as much as $10 an hour for some jobs.

American Axle spokeswoman Renee Rogers declined to comment comment on details of the agreement, saying the company would wait to see if it is ratified.

About 3,650 UAW workers went on strike Feb. 26, saying American Axle could afford to continue paying them the same wages. UAW President Ronald Gettelfinger was in attendance at the meeting in Detroit today. The event was closed to media.

To contact the reporter on this story: Alex Ortolani in Southfield, Michigan, at aortolani1bloomberg.net

Last Updated: May 18, 2008 11:05 EDT