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Ford and GM are laying off more workers as the United Auto Workers strike intensifies

Ford and GM are laying off more workers as the United Auto Workers strike intensifies

General Motors intends to lay off 164 employees at its stamping plants in India, Ohio, and Parma. However, as long as GM’s assembly lines remain operational, most workers at these plants will have enough work and will not be laid off.

Ford, on the other hand, laid off approximately 330 workers at its Chicago stamping plant and Lima engine plant after a strike at its Chicago assembling plant was declared. Because all of the production work at the plants is linked, the strike had a knock-on effect and disrupted operations.

Furthermore, the automakers’ strike has resulted in $1.1 billion in losses due to reduced sales, production, and facility costs. Suppliers to these automakers have also suffered losses of approximately $1.3 billion, while dealership and customer losses total approximately $1.2 billion. This means that the ongoing strikes have cost nearly $4 billion!

The United Auto Workers (UAW) is demanding a 36% pay increase. The strike, which began on September 15, has caused significant disruption at the Big Three, which are Ford, General Motors, and Stellantis.

The UAW also wants to get rid of the two-tiered wage structure. Workers in the top tier — those who joined the company in 2007 or earlier — are paid an average of $33 per hour under this structure. Those who joined after 2007 earn significantly less, as they are placed in the lower tier, earning only about $17 per hour.

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