The Big 3 automakers have continued to lay off employees as several manufacturing plants are experiencing striking of workers from the UAW amidst contract negotiations.
This week, Ford and General Motors laid off another 500 employees bringing the total to over 6,000 people out of work because of the United Auto Workers (UAW) strike. The union is strategically striking at various locations unannounced causing the big 3 automakers to scramble without much progress being made on contract negotiations.
“Our production system is highly interconnected, which means the UAW’s targeted strike strategy has knock-on effects for facilities that are not directly targeted for a work stoppage,” Ford said in an interview with the Daily Caller. “In this case, the strike at Chicago Assembly Plant has directly impacted some operations at Chicago Stamping Plant and Lima Engine Plant. Approximately 330 employees have been asked not to report to work, with layoffs taking effect beginning Sept. 30 at Chicago Stamping Plant and Oct. 2 at Lima Engine Plant.”
The car manufacturers have currently offered the UAW a massive 20% increase in wages over a four year contract while the UAW is asking for a 30% increase on the low end. The UAW is also demanding a major increase in benefits such as the elimination of wage tiers and cost of living adjustments.
“The UAW leadership’s decision to call a strike at GM Wentzville Assembly, and now GM Lansing Delta Township Assembly, continues to have negative ripple effects,” GM said in an interview with the Daily Caller. “We have said repeatedly that nobody wins in a strike, and this is yet another demonstration of that fact. We will continue to bargain in good faith with the union to reach an agreement as quickly as possible.”
Ford recently announced that it will be halting all construction of new electric vehicles (EV) produced in Marshall, Michigan. This plant would have created 2,500 jobs and will only continue with the plan if their costs can compete with other electric vehicle manufacturers. The UAW argues that the EV production are not covered under current contracts resulting in lower wages and benefits.