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Home Automobile

Strike against three big vehicle manufacturers causes huge losses, situation of layoffs also

The News GlorybyThe News Glory
26/10/2023
Strike against three big vehicle manufacturers causes huge losses, situation of layoffs also

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Washington. The impact of the United Auto Workers (UAW) strike against the three big automobile companies of America is increasing. This is the 40th day of the strike. Workers at Ford Motor Co., General Motors Co. (GM) and Stellantis NV’s largest and most profitable plants are on walkout.

According to the report of Xinhua news agency, the union organized 5,000 of its workers for a strike at GM’s full-size SUV plant in Arlington Texas on Tuesday.

The plant builds the Detroit automaker’s most expensive vehicles such as the Chevrolet Tahoe and Suburban, GMC Yukon and Yukon XL, and the Cadillac Escalade and Escalade-V.

On Monday, the UAW organized a strike for its 6,800 workers at Stellantis’ Sterling Heights Assembly Plant in Michigan.

The plant manufactures the popular Ram 1500 truck and is Stellantis’ largest plant as well as its biggest moneymaker.

On October 11, 8,700 UAW member workers unexpectedly walked out at Ford’s highly profitable truck plant in Kentucky.

The plant produces Ford’s super duty trucks and a pair of large SUVs, the Ford Expedition and Lincoln Navigator.

Now all of the Big Three’s largest and most profitable assembly plants are on strike.

After escalating the strike at Ford’s Kentucky truck plant, UAW President Shawn Fenn said the union had changed its strategy and would call on plants to join the strike at any time, not just on Friday.

Fain detailed the current proposals from GM, Ford and Stellantis on October 19.

All Big Three have now offered 23 per cent pay rises and agreed to eliminate pay tiers.

As about 45,000 UAW members out of approximately 146,000 nationwide are now on strike at eight assembly plants and 38 Stellantis and GM parts distribution centers in 22 states, the Big Three automakers are incurring greater losses and announcing more layoffs.

Stellantis announced 525 new layoffs on Tuesday, bringing the total number of strike-related layoffs to 2,045, according to local media.

GM said that starting Wednesday, it will lay off 139 workers at its Parma Metal Center in Ohio. No work available due to strike at Arlington plant.

Overall, the automaker reported 2,640 layoffs related to the strike.

Ford has fired 3,167 employees due to the strike.

The latest data released Monday by Michigan consulting firm Anderson Economic Group shows the U.S. auto industry has lost about $9.3 billion from the ongoing UAW strike.

In the breakdown, the UAW strike so far has cost workers $488 million in lost wages, while automakers have collectively lost $4.18 billion. Dealers and customers are suffering a combined loss of $1.86 billion, and suppliers have lost more than $2.78 billion.

If the strike drags on, it will force automakers to delay or cancel investments, the consulting firm predicted.

GM, Ford and Stellantis have already announced such actions, with “more likely to follow if the strike continues”.

In his weekly address to members on October 19, Fenn said that although the union has received record offers from the Big Three, union leadership believes there is much more to gain from the automakers.

The UAW announced a strike on September 14 at three select factories at Ford, GM and Stellantis after contracts with the Big Three expired.

–IANS

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