Current:Home > FinanceFord and GM announce hundreds of temporary layoffs with no compensation due to strike -Wealth Axis Pro
Ford and GM announce hundreds of temporary layoffs with no compensation due to strike
View
Date:2025-04-25 00:29:50
The ripple effects of the United Auto Workers' strike have started.
Ford sent home about 600 workers at its Michigan plant on Friday because of strike-related production issues. Citing similar reasons, General Motors has also warned that 2,000 workers at its Fairfax assembly plant in Kansas are expected to be out of work by early next week.
When a factory is idled because of supply chain issues, companies typically give partial pay to its non-striking workers. But in this case, Ford and General Motors said there will be no such compensation.
The UAW President Shawn Fain said the union will make sure that affected workers continue to have an income and called the temporary layoffs as a strategic attack to hasten negotiations.
"Let's be clear: if the Big Three decide to lay people off who aren't on strike, that's them trying to put the squeeze on our members to settle for less," Fain said Saturday in a statement.
The prospect of temporary layoffs come less than a day after the UAW launched its unprecedented strike against the Big Three automakers — Ford, General Motors and Stellantis, the parent company of Chrysler, Jeep and Ram. On Friday, about 13,000 workers at three Midwest plants walked off the job after the auto companies failed to reach a deal with the union on pay, pensions and other benefits.
The union and the three auto makers returned to the bargaining table on Saturday.
"We had reasonably productive conversations with Ford today," the UAW said in a written statement provided to NPR.
The strike currently involves less than 9% of UAW membership at the three companies. But more workers may go on strike at a moment's notice, depending on how negotiations go.
Auto companies say layoffs are a direct consequence of UAW strike
About 600 workers at Ford's Michigan Assembly Plant's body construction department and south sub-assembly area of integrated stamping were told not to report to work on Friday because the components they produce require e-coating. According to Ford, e-coating is a protection measure completed by the facility's paint department, which went on strike.
"Our production system is highly interconnected, which means the UAW's targeted strike strategy will have knock-on effects for facilities that are not directly targeted for a work stoppage," Ford said in a statement.
General Motors similarly said the strike at Wentzville Assembly in Missouri was already having "a negative ripple effect" at the rest of its Fairfax assembly plant in Kansas.
"This is due to a shortage of critical stampings supplied by Wentzville's stamping operations to Fairfax," General Motors said in a statement. "We are working under an expired agreement at Fairfax. Unfortunately, there are no provisions that allow for company-provided SUB-pay in this circumstance."
But UAW president Fain argued that the auto companies can afford to avoid such temporary layoffs.
"With their record profits, they don't have to lay off a single employee. In fact, they could double every autoworker's pay, not raise car prices, and still rake in billions of dollars," he said in a statement on Saturday.
NPR's Camila Domonoske contributed reporting.
veryGood! (88291)
Related
- A Mississippi company is sentenced for mislabeling cheap seafood as premium local fish
- French President Macron arrives in India, where he’ll be chief guest at National Day celebrations
- Seattle officer’s remarks about death of graduate student from India violated policy, watchdog says
- What's next for Eagles? Nick Sirianni out to 'reprove' himself; GM defends Jalen Hurts
- How to watch new prequel series 'Dexter: Original Sin': Premiere date, cast, streaming
- Alabama's Kalen DeBoer won't imitate LSU's Brian Kelly and adopt fake southern accent
- US expresses concerns over Sri Lanka’s controversial internet regulation law
- Harrowing helicopter rescue saves woman trapped for hours atop overturned pickup in swollen creek
- From family road trips to travel woes: Americans are navigating skyrocketing holiday costs
- Florida House passes a bill to ban social media accounts for children under 16
Ranking
- Small twin
- Iran disqualifies former moderate president from running for reelection to influential assembly
- Do Stanley cups contain lead? What you should know about claims, safety of the tumblers
- Pickleball has taken the nation by storm. Now, it's become a competitive high-school sport
- Warm inflation data keep S&P 500, Dow, Nasdaq under wraps before Fed meeting next week
- EXPLAINER: What the Tuvalu election means for China-Pacific relations
- Stock market today: Asian shares mostly rise, led by gains in Chinese markets following policy moves
- Winners and losers of Jim Harbaugh's decision to return to NFL as coach of Chargers
Recommendation
Are Instagram, Facebook and WhatsApp down? Meta says most issues resolved after outages
Inside Pregnant Giannina Gibelli and Blake Horstmann's Tropical Babymoon Getaway
Dramatic video shows moment Ohio police officer saves unresponsive 3-year-old girl
What is Jim Harbaugh's NFL record? Everything you need to know about Chargers new coach
Who's hosting 'Saturday Night Live' tonight? Musical guest, how to watch Dec. 14 episode
Regulators target fees for consumers who are denied a purchase for insufficient funds
A manifesto for feeding 8 billion people
More heavy snow expected in Japan after 800 vehicles trapped on expressway