News: GM and Stellantis take hit from UAW strikes 2,300 employees laid off

Strategic HR

GM and Stellantis take hit from UAW strikes 2,300 employees laid off

Workers represented by the UAW began strikes at the Wentzville and Toledo assembly plants as a result from the failure of the three automakers to secure a new contract agreement with the union.
GM and Stellantis take hit from UAW strikes 2,300 employees laid off

General Motors and Stellantis reported more employees’ layoff, attributing them to the aftermath of the United Auto Workers strike.

In a statement released on Wednesday, General Motors (GM) announced the suspension of production at its assembly plant located in Fairfax, Kansas. The reason cited was a "shortage of critical stampings" that were originally intended to be provided by its facility in Wentzville, Missouri, where employees initiated a strike last week, reported CNBC. This production halt is impacting approximately 2,000 workers.

Earlier on Wednesday, Stellantis announced the immediate layoff of approximately 370 employees across three parts manufacturing facilities in Ohio and Indiana. These layoffs are attributed to "storage constraints" and are directly connected to the ongoing strike. 

These particular plants produce components for Jeep vehicles manufactured at Stellantis' Toledo Assembly Complex, where workers are currently participating in the strike.

UAW-represented workers initiated strikes at the Wentzville and Toledo assembly plants, as well as a Ford Motor factory located in Wayne, Michigan, near Detroit, on September 15th. These strikes were triggered by the inability of the three automakers to reach an agreement on a new contract with the union.

GM's Fairfax Assembly plant is responsible for producing the Chevrolet Malibu sedan and the Cadillac XT4 crossover. Due to the ongoing strike, the approximately 2,000 workers who have been laid off from the Fairfax plant will not be eligible for the supplemental unemployment benefits that are typically available to GM's laid-off employees.

“We have said repeatedly that nobody wins in a strike. What happened to our Fairfax team members is a clear and immediate demonstration of that fact. We will continue to bargain in good faith with the union to reach an agreement as quickly as possible,” GM said in a statement, reported CNBC. 

Close to 13,000 workers from GM, Ford, and Stellantis are currently participating in strikes at the Wentzville, Toledo, and Wayne plants. UAW President Shawn Fain has indicated that unless there is "significant progress" in negotiations, the union plans to announce additional strikes on Friday.

Read full story

Topics: Strategic HR, #Layoffs, #HRTech, #HRCommunity

Did you find this story helpful?



How do you envision AI transforming your work?