Big Three carmakers begin layoffs as UAW strike reaches Day 6.
UAW Strike: Automakers Begin Furloughs as Tensions Rise
As the United Auto Workers (UAW) strike enters its sixth day, the Big Three automakers—Ford, General Motors, and Stellantis—are beginning to furlough workers.
GM announced on Sept. 20 that it idled a manufacturing plant in Kansas, laying off nearly all of the site’s roughly 2,000 employees. The company noted that there’s no work available for most of the workers at the assembly plant because UAW-represented members at another GM factory went on strike.
The carmaker also noted that it can’t offer supplemental unemployment benefits because of “the specific circumstances of this situation.”
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“It is unfortunate that the UAW leadership’s decision to call a strike at Wentzville Assembly has already had a negative ripple effect, with GM’s Fairfax Assembly plant in Kansas being idled today and most of its represented team members leaving the plant as there is no work available,” GM said in a statement.
The Buick and Chevrolet maker has presented a counterproposal to the union, submitting a “record” offer last week of a 20 percent wage increase. But UAW President Shawn Fain has stated that it wasn’t enough.
Writing in a Detroit Free Press column on Sept. 20, GM President Mark Reuss slammed UAW leadership over its rhetoric and “flow of misinformation” during the labor dispute.
“As the past has clearly shown, nobody wins in a strike,” Mr. Reuss wrote. “We have delivered a record offer. That is a fact. It rightly rewards our team members, while positioning the company for success in the future. Often in these situations, the clouds of rhetoric can obscure reality.”
He added that the UAW’s full demands are “untenable” and would prevent the company from investing in the future.
“Our competitors across the country and around the world, most of whom are non-union, will waste no time seizing the opportunity we would be handing them,” Mr. Reuss added.
Stellantis’s Furloughs
Stellantis, which makes the Chrysler, Jeep, and Ram brands, confirmed to The Epoch Times on Sept. 20 that it expects to temporarily lay off 370 employees because of UAW strike action at the Toledo Assembly Complex due to “storage constraints.”
The move affects workers at the Toledo Machining Plant in Ohio and the Kokomo Transmission and Kokomo Casting facilities in Indiana.
“As a consequence of the strike action at the Toledo Assembly Complex (TAC), Stellantis confirms that it will immediately temporarily lay off 68 employees at the Toledo Machining Plant in Perrysburg, Ohio, due to storage constraints. All other production at this facility continues,” said Jodi Tinson, a Stellantis spokesman.
“In addition, we anticipate similar actions at Kokomo Transmission and Kokomo Casting in Kokomo, Indiana, affecting an estimated 300 employees at these two facilities. Stellantis continues to closely monitor the impact of the UAW strike action on our manufacturing operations.”
The automaker has proposed a 14.5 percent general wage increase over four years, inflation-protection payments, and a Juneteenth paid holiday.
“This is a responsible and strong offer that positions us to continue providing good jobs for our employees today and in the next generation here in the U.S.,” Mark Stewart, the COO of Stellantis North America, said in a letter to employees. “It also protects the company’s future ability to continue to compete globally in an industry that is rapidly transitioning to electric vehicles.”
The UAW thinks it is a “deeply unfair offer.”
Ford Layoffs
A day after UAW workers walked off the job, Ford announced a round of temporary layoffs, affecting 600 employees at the Michigan Assembly Plant’s body construction department and south sub-assembly area of integrated stamping.
The automaker warned that the strike would produce “knock-on effects” for other parts of the company’s supply chain. This would force Ford to close down various manufacturing locations.
“This is not a lockout. This layoff is a consequence of the strike at Michigan Assembly Plant’s final assembly and paint departments because the components built by these 600 employees use materials that must be e-coated for protection. E-coating is completed in the paint department, which is on strike,” Ford said in a statement.
Since Aug. 29, Ford has presented four counterproposals to union leadership. CEO Jim Farley recently warned that agreeing to all of the UAW’s demands, such as a 40 percent pay raise and new pension benefits, could force the automaker into bankruptcy.
Separately, Ford reached a tentative deal with the Canadian union Unifor, averting a strike that would have resulted in a walkout by about 5,000 workers. Details of the offer are unknown, but Unifor Ford Master Bargaining Chair John D’Agnolo said in a statement that the deal “makes the kind of gains our members need today and adds greater financial security for the future.”
Bracing for Broader Strike
Mr. Fain confirmed in a video message posted to social media on Sept. 18 that the union’s strike could expand if “serious progress” is not made in contract negotiations with the Detroit Three.
“That will mark more than a week since our first members walked out. And that will mark more than a week of the Big Three failing to make progress in negotiations toward reaching a deal that does right by our members,” he said in his video message,” Mr. Fain said.
“Autoworkers have waited long enough to make things right at the ‘Big Three.’ We’re not waiting around, and we’re not messing around.”
The deadline for greater progress in contract talks is Sept. 22 at noon.
Mr. Fain also slammed the automakers’ decisions to idle people who aren’t on strike, accusing them of “trying to put the squeeze on our members to settle for less.”
What measures are the companies taking to mitigate the effects of the strike on workers and the industry as a whole?
, which is affected by the strike,” a Ford spokesperson said.
The UAW strike, which began on Sept. 15, involves around 48,000 workers at 52 GM facilities, 9 Stellantis facilities, and 4 Ford facilities. The main issues at stake include better wages, more job security, and improved benefits for the workers. The strike has already disrupted supply chains and caused production delays for the automakers.
Both sides have expressed their commitment to reaching a fair and mutually beneficial agreement. However, as tensions rise and negotiations continue, the impact of the strike on the industry is becoming more apparent.
With furloughs occurring at GM, Stellantis, and Ford, the strike is starting to have a direct impact on workers and their livelihoods. The idling of plants and layoffs underscore the challenges faced by both the automakers and the striking workers.
While the companies are taking steps to mitigate the effects of the strike, such as offering supplemental unemployment benefits and temporary layoffs, the long-term implications of the strike remain uncertain. The longer the strike continues, the more significant the consequences could be for the industry as a whole.
Analysts warn that the strike could have far-reaching repercussions, affecting not only the automakers but also suppliers, dealerships, and the broader economy. The disruption in production and supply could lead to decreased revenues and potential job losses in related industries.
At the same time, the strike is attracting attention from experts and analysts who are closely monitoring the developments and analyzing the potential winners and losers in this labor dispute. The ongoing negotiations and the positions taken by both the UAW and the automakers will shape the outcome of the strike and its aftermath.
As the UAW strike enters its second week, the stakes are high for both sides. The impact on
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