Current:Home > StocksFord and GM announce hundreds of temporary layoffs with no compensation due to strike -TrueNorth Finance Path
Ford and GM announce hundreds of temporary layoffs with no compensation due to strike
View
Date:2025-04-12 09:51:50
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! (63425)
Related
- Rylee Arnold Shares a Long
- Dog rescued from Turkey earthquake rubble 3 weeks later as human death toll soars over 50,000
- Françoise Gilot, the famed artist who loved and then left Picasso, is dead at 101
- In 'The Legend of Zelda: Tears of the Kingdom' the open world is wide open
- 2 killed, 3 injured in shooting at makeshift club in Houston
- Warm banks in U.K. welcome people struggling with surging heating bills
- Jennifer Lawrence Steps Out in Daring Style at Awards Season Party on 10th Anniversary of Oscar Win
- Pregnant Nikki Reed Shares Her Tips for a Clean Lifestyle
- In ‘Nickel Boys,’ striving for a new way to see
- Secrets of the National Spelling Bee: Picking the words to identify a champion
Ranking
- Meet the volunteers risking their lives to deliver Christmas gifts to children in Haiti
- Books We Love: Love Stories
- As 'Succession' ends, a family is forced to face the horrifying truth about itself
- Princess Diana Appears with Baby Prince William and King Charles in Never-Before-Seen Photos
- Scoot flight from Singapore to Wuhan turns back after 'technical issue' detected
- Peruvian man found with centuries-old mummy in his cooler bag. He called the corpse Juanita, my spiritual girlfriend.
- You Have to See Harry Shum Jr.'s Fashion Nod to Everything Everywhere at 2023 SAG Awards
- Michelle Yeoh Drops F-Bombs During Emotional 2023 SAG Awards Speech
Recommendation
Whoopi Goldberg is delightfully vile as Miss Hannigan in ‘Annie’ stage return
The Irony Of the Deinfluencing Trend All Over TikTok
Historic treaty reached to protect marine life on high seas
5 new mysteries and thrillers for the start of summer
'As foretold in the prophecy': Elon Musk and internet react as Tesla stock hits $420 all
Racist horror tropes are the first to die in the slasher comedy 'The Blackening'
Hundreds of Iranian schoolgirls targeted in mystery poisonings as supreme leader urges death penalty for unforgivable crime
'Rich White Men' reinforces the argument that inequality harms us all