GM and Ford slash 500 jobs amid escalating union battle
General Motors and Ford are laying off 500 additional workers between them, blaming the expansion of the strike announced by the United Auto Workers union at those companies on Friday.
General Motors confirmed 164 layoffs at stamping plants in Ohio and Indiana, affecting crucial metal parts supply for assembly lines halted due to the ongoing strike at Wentzville, Ohio, and Lansing Delta Assembly plant, Michigan, reported CNN.
The impacted plants produce popular vehicles including Chevrolet Colorado, GMC Canyon pickups, Chevy Traverse, and Buick Enclave pickups.
In Parma and Marion, the majority of workers will remain on duty, producing stamping for various plants, as GM's assembly lines across the board continue their operations.
“We have said repeatedly that nobody wins in a strike, and this is yet another demonstration of that fact. We will continue to bargain in good faith with the union to reach an agreement as quickly as possible,” read GM’s statement.
The company had previously laid off over 1,800 workers at various locations including the Fairfax assembly plant in Kansas City, Kansas, the Toledo engine plant, and the Lockport components factory in New York state.
With the latest round of cuts, nearly 2,000 workers have been affected across the five plants. In a similar move, Ford announced the layoff of 330 workers at its Chicago Stamping Plant and Lima Engine Plant following the union's decision to strike its Chicago Assembly plant on Friday. The Chicago Assembly plant was responsible for the production of Ford Explorer and Lincoln Aviator SUVs.
“Our production system is highly interconnected, which means the UAW’s targeted strike strategy has knock-on effects for facilities that are not directly targeted for a work stoppage,” read the statement from Ford.
It had previously laid off 600 hourly workers at the Michigan Assembly plant in Wayne, Michigan who were not on strike.
Stellantis, known for producing vehicles under esteemed brands like Jeep, Ram, Dodge, and Chrysler, did not declare any further layoffs. However, the UAW refrained from broadening the strike to more Stellantis facilities on Friday, citing positive advancements in negotiations.
Notably, Stellantis had previously reported laying off 350 UAW members at its Toledo Machining plant, as well as at transmission and casting plants situated in Kokomo, Indiana.
The UAW referenced its previous statement expressing criticism towards the layoffs.
“Let’s be clear: if the Big Three decide to lay people off who aren’t on strike, that’s them trying to put the squeeze on our members to settle for less. With their record profits, they don’t have to lay off a single employee. Their plan won’t work. The UAW will make sure any worker laid off in the Big Three’s latest attack will not go without an income,” read the union’s statement, reported CNN.
The UAW is providing $500 weekly to over 25,000 striking members and 3,300 laid-off members. This amounts to about $14.3 million weekly. The strike has cost UAW members an estimated $325 million in lost wages during the first two weeks.
Automakers have incurred a total estimated cost of $1.1 billion, and suppliers and dealerships have lost $1.3 billion and $1.2 billion respectively. The total cost of the strike is just under $4 billion in its first two weeks.