GM and Ford layoffs hit four more plants as UAW strikes continue

Credit: UAW

General Motors (GM) and Ford have announced additional layoffs related to the ongoing United Auto Workers (UAW) strike, affecting as many as 500 workers spread across four different plants.

On Monday, Ford said that it would furlough 330 workers across a stamping plant in Chicago and an engine plant in Lima, Ohio, according to a report from Reuters. Additionally, GM is furloughing 130 employees at a metal center in Parma, Ohio, along with 34 others at a metal center in Marion, Indiana

The layoffs are reportedly indefinite, and they come after the UAW escalated walkouts against both Ford and GM on Friday, bypassing Stellantis as the strikes entered their third week. The second wave of additional walkouts targeted GM’s Delta Township assembly plant in Lansing, Michigan, along with a Ford assembly plant in Chicago. Stellantis avoided additional walkouts after making last-minute concessions with the UAW.

The prior Friday, the UAW ordered workers to walk out of 18 GM and 20 Stellantis parts distribution centers after the strikes originally began on September 15 following the expiration of previous union contracts.

The news also comes nearly two weeks after GM shut down its Fairfax, Kansas plant and laid off 2,000 workers without unemployment, citing a lack of available work. Ford also announced temporary layoffs of around 600 workers at a Michigan plant last month, while Stellantis furloughed around 370 employees at plants in Ohio and Indiana.

UAW could try to unionize Tesla and other automakers next

Ford CEO Jim Farley and GM CEO Mary Barra blasted the UAW for the strikes on Friday, criticizing union President Shawn Fain for not accepting current contract offers on the table.

The UAW said that it was hosting bargaining sessions with GM and Ford on Monday, along with reaching a new labor deal with Volvo-owned Mack Trucks before previous contracts expired on Sunday night. Still, the union noted that the contracts needed to be ratified yet, though they included significant wage increases.

This is the first time the UAW has lodged simultaneous strikes against all three of Michigan’s “Big Three” automakers.

JPMorgan estimated in a research note on Monday that the strike has so far cost Ford $145 million and GM $191 million, though he noted that the automakers were getting “close on pay and benefits.” Anderson Economic Group estimates total losses from the first two weeks of the strike to be $3.9 billion, comprised of about $1.12 billion in losses for Ford, GM and Stellantis, $1.29 billion in losses for suppliers and $1.2 billion in losses for dealers and customers.

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GM and Ford layoffs hit four more plants as UAW strikes continue
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