General Motors (GM) announced on October 9 that it is laying off almost 200 more employees, attributing this action to the ongoing strike led by the United Auto Workers (UAW). This marks the sixth GM plant affected by the strike, as reported by Reuters.
Last week, GM had stated that approximately 2,100 workers were impacted by the UAW strike, affecting two assembly plants in Missouri and Michigan, as well as 18 parts distribution centers. The recent update reveals that the number of affected workers has risen to about 2,300. This includes 70 layoffs at the Lansing, Michigan, stamping plant and approximately 70 more at a Toledo, Ohio, plant.
GM clarified that employees are not expected to return to work until the strike is resolved. The ongoing labor dispute centers around contract negotiations between the UAW and the Detroit Three automakers, including GM. While GM has made updated offers, they have not met the demands of the union, which has sought a 23 percent pay raise, similar to what was suggested by Ford.
The impact of the strike extends beyond GM, as other automakers and their employees are also feeling the effects. Stellantis, the parent company of Chrysler, announced on Monday that an additional 570 workers in Michigan and Indiana would be furloughed due to storage constraints related to the strike, bringing the total to 640.
Ford has disclosed that it is furloughing another 70 employees in Michigan because of the ongoing strike, bringing the overall count of affected employees to 1,865.
The strike by the UAW is part of a broader trend of labor actions in various sectors, including automotive, shipping, and healthcare. Surveys have indicated widespread American support for the demands of these unions.
Approximately 25,000 UAW members out of a total of 146,000 UAW employees at GM, Ford, and Stellantis are participating in the strike, which began on September 15. UAW President Shawn Fain had stated on Friday that the union would not extend the strikes, citing progress in negotiations.
Meanwhile, Canadian workers at General Motors also face a contract talk deadline at midnight on Monday, which could potentially lead to another strike.
The strike has taken a toll on production and earnings in the automotive industry. Deutsche Bank estimated that GM has lost production of 34,176 vehicles due to the strike, Ford 21,296 vehicles, and Stellantis 18,893 vehicles, resulting in an overall reduction of $946 million in earnings for the Detroit Three automakers up to this point.
Mexico’s auto parts industry is also expected to face a production setback of $412 million by Friday, according to a trade group. The Anderson Economic Group estimates a comprehensive economic loss of $5.5 billion by the end of the third full week of the strike, including lost wages, automaker losses, supplier losses, and dealer and customer losses.
