General Motors (GM) and Ford Motor have revealed plans to lay off an additional 500 workers across four Midwestern plants as the United Auto Workers (UAW) strike enters its 18th day. The ongoing strike has taken a toll on several facilities, leading to workforce reductions.
GM and Ford are taking measures to address the impact of the UAW strike on their operations. Ford has announced that it will furlough a total of 330 workers at its Chicago Stamping and Lima, Ohio Engine plants. Meanwhile, GM’s layoffs will affect 130 employees at its Parma, Ohio Metal Center and 34 at its Marion, Indiana Metal Center.
UAW Presents New Contract Offer
The UAW, on the other hand, has presented a new contract offer to GM. While GM acknowledged receiving the counterproposal, it noted that “significant gaps remain” in the negotiations. The UAW has also engaged in fresh rounds of bargaining with Chrysler-parent Stellantis.
Impact on Production
The strike has had a notable impact on production across various automakers. GM previously had to idle its Fairfax, Kansas plant due to parts shortages resulting from the strike, leading to 2,000 indefinite layoffs. Ford also temporarily laid off approximately 600 workers at a Michigan auto plant due to strike-related issues. Stellantis, too, had to furlough nearly 370 workers in Ohio and Indiana.
UAW Expands Strike to Additional Plants
UAW President Shawn Fain expanded the strike to include a GM Lansing, Michigan plant and a Ford Chicago assembly plant, marking the first-ever simultaneous strike against the Detroit Three automakers. Stellantis managed to avoid the strike after making last-minute concessions.
New Labor Agreement with Volvo Group
In a separate development, the UAW announced that it reached a tentative labor agreement with Volvo Group’s Mack Trucks, covering 4,000 workers. The agreement includes significantly increased wages but is pending ratification by the union.
Financial Impact of Strike
JPMorgan estimated that the ongoing UAW strike has cost GM approximately USD 191 million and Ford about USD 145 million. However, there is some optimism about reaching a deal, with reports suggesting that the two sides are “close on pay and benefits.”
Total Losses Estimated at USD 3.9 Billion
According to Anderson Economic Group, the first two weeks of the strike have resulted in total losses of USD 3.9 billion. This includes USD 325 million in wage losses, USD 1.12 billion in losses for the Detroit Three automakers, USD 1.29 billion for suppliers, and USD 1.2 billion in losses for dealers and customers.
As negotiations continue, both automakers and the UAW are working to find common ground and resolve the ongoing strike, which has had significant ramifications for the automotive industry.