Detroit’s Big Three automakers continue to lay off hundreds of factory workers as the United Auto Workers strike reaches its fourth week. General Motors, Ford, and Stellantis have collectively laid off around 4,835 workers whose job tasks are tied to the factories affected by the strike. The automakers have not disclosed whether these workers will be rehired once the strike ends. The UAW strike, which began last month, has led to demands for increased pay, cost-of-living adjustments, pension benefits, greater job security, a faster path to full-time status for temporary workers, and a four-day work week. In addition to the layoff of autoworkers, companies supplying parts to the automakers have also had to temporarily lay off workers.
GM reaches agreement in Canada
GM workers in Ontario, Canada, went on strike but reached an agreement with the company hours later. The agreement covers about 4,300 autoworkers at three GM facilities in Ontario and includes items such as pensions, retiree income, and the conversion of temporary workers into permanent employees.
UAW talks continue
UAW President Shawn Fain has stated that talks between the union and the Big Three are heading in the right direction. GM has agreed to include employees at its upcoming electric vehicle battery plant in Indiana in the UAW contract. Automakers have made counteroffers, including a 20% wage increase, an 8% company contribution to employee retirement accounts, and an increase in temporary worker wages to $20 an hour. However, negotiations are still ongoing, and there is no indication of when the strike may end. The longer the strike continues, the more it is expected to impact the U.S. economy.
The UAW strike has already cost the economy $5.5 billion, including losses for the Big Three and parts suppliers. The impact on the nation’s economy continues to grow as the strike persists.
— The Associated Press contributed to this report.
