Home » US business news • US Employment News » Ford and GM cut 500 factory workers due to UAW strike
https://www.whatjobs.com/news/usa/us-employment-news/ford-and-gm-cut-500-factory-workers-due-to-uaw-strike
Ford and General Motors have slashed an additional 500 workers as the effects of the United Auto Workers’ ongoing strike continue.
Ford said it idled two factories supplying parts to a Chicago sport-utility-vehicle assembly plant on Monday, October 2.
Workers in the plant walked off the job on Friday, September 31.
Read More: GM And Stellantis Slashed Over 2,000 Workers Because Of UAW Strike
Work stopped at a stamping plant near the SUV factory and an engine plant in Lima, Ohio.
The company said it resulted in 330 job losses.
GM laid off 130 workers on layoff at a plant near Cleveland and let go another 34 at a facility in central Indiana.
Both factories make metal parts used at GM assembly plants that are dark because of the walkouts.
About 25,000 UAW workers are on strike at facilities owned by GM, Ford and Chrysler parent Stellantis.
The union started the work stoppages after it failed to reach terms on new four-year contracts at the September 14 deadline.
Read More: UAW Threatens Strike Escalations Amid Ongoing Talks With Detroit Majors
It has gradually expanded the strike as a pressure tactic.
More than 6,000 factory workers are off because of spillover effects from the strike.
That figure includes several suppliers who have cited furloughs directly tied to the walkouts.
Negotiations have continued since the union widened the strike Friday to include the Ford Chicago factory and a GM SUV plant in Lansing, Michigan.
Wages have been a primary issue in the talks.
Looking to boost your online brand? Create your FREE business profile at WhatBiz? here.
The companies recently had proposals on the table for 20 percent wage increases over four years.
However, the union has been pressing for an increase in the mid-30 percent range.
The union also demands cost-of-living adjustments, better retirement benefits, and other terms.
For now, its decision to forgo an all-out strike has limited the hit to vehicle production and the companies’ bottom lines.
Need Career Advice? Get employment skills advice at all levels of your career
Data from Wards Intelligence showed the five factories on strike across GM, Ford, and Stellantis accounted for roughly 16 percent of the vehicles produced in North America by the three companies this year through August.
On Monday, JPMorgan estimated the strike erased about $191 million from GM’s bottom line in the third quarter and about $145 million in profit from Ford.
Follow us on YouTube, Twitter, LinkedIn, and Facebook.
