General Motors announced 2,000 layoffs Wednesday and closed its Kansas plant, saying there was “no work” because of a strike at another plant.
The automaker said the corresponding strike involving 13,000 workers in Detroit, who downed tools last week, led to further job cuts.
GM also said it would not provide additional unemployment benefits “due to the specific circumstances of this situation.”
Job cuts were also announced by Stellantis, the maker of Chrysler, Jeep and Dodge, including 68 workers in Ohio, and possibly another 300 in Indiana. Ford also laid off 600 employees Friday in Wayne, Detroit.
This comes as the United Auto Workers Union began a historic strike on Friday after its previous contract with Stellantis, Ford and GM expired.
General Motors announced 2,000 layoffs on Wednesday and closed its Kansas plant.
United Auto Workers (UAW) picket outside the Stellantis Toledo assembly complex in Ohio after manufacturers failed to reach an agreement in contract negotiations
General Motors workers demonstrate outside the Wentzville, Mo., plant as the UAW union strikes against Detroit’s Big Three automakers for the first time in history.
When union demands for a 40 percent wage increase for its 146,000 members across the United States over four years and a four-day work week were not met on time, a strike was called. announced.
Automakers responded with offers worth about half that increase, but no deal was reached.
The UAW said more workers would begin striking at noon Friday unless “serious progress” toward an agreement occurs.
The latter measure is part of a targeted strike strategy whereby workers leave specific sites at short notice to prevent automakers from anticipating and mitigating the impact.
Business leaders and politicians fear that a prolonged strike by auto workers could have a significant impact on the economy.
Anderson Economic Group estimated that a 10-day strike could result in a total economic loss of nearly $6 billion.
President Joe Biden threw his support behind workers and urged auto manufacturing giants to go further with their new industrial offerings.
The union contracts expired at 11:59 p.m. Thursday, after demands for a 40 percent wage increase and a four-day work week were not met.
President Biden addressed the nation Friday alongside striking auto workers. He says manufacturers made record profits that were not shared fairly.
UAW President Shawn Fain (center) staged a historic strike in an effort to keep businesses guessing about what might happen next and encourage deal-making.
Ford boss Jim Farley said Wednesday that if the union struck against his company, it was not Ford’s fault because it had made four offers and had not gotten a “real counteroffer.”
“No one wants a strike. But I respect workers’ rights to use their options within the collective bargaining system and I understand workers’ frustrations,” Biden commented last week.
“Over the past decade, automakers have enjoyed record profits, including in recent years because of the extraordinary skills and sacrifices of UAW workers,” Biden said.
“These record profits have not been shared fairly, in my opinion, with these workers.”
“I think they should go further to ensure that record corporate profits mean record contracts for the UAW,” Biden added. “I hope the parties can return to the negotiating table to forge a win-win agreement.”
General Motors CEO Mary Barra said she is disappointed with the current situation, but she is ready to go to the negotiating table and get back to work.
“This is a very, very strong financial offer. Again, with world-class benefits and healthcare. I think what matters most to our employees is job security,” Barra told Good Morning America.
“This is important as we are in the midst of a transformation from internal combustion engine vehicles to electric vehicles.”
“This is important as we are in the midst of a transformation from internal combustion engine vehicles to electric vehicles.”
Stellantis said in a statement Friday: “We are extremely disappointed by the refusal of UAW leadership to responsibly engage in reaching a fair agreement in the best interests of our employees, their families and our clients.
“We immediately placed the Company in emergency mode and will make all appropriate structural decisions to protect our North American operations and the Company.”