Just yesterday, we reported that the GM strike could lead to temporary layoffs in the Canadian auto sector. Now, it looks as though the prediction has become reality as GM Canada cut its workforce at the final assembly plant in Oshawa by 1,200 employees
With roughly 50,000 UAW members now participating in the GM strike, GM production has been idled across the nation. As a result, the supply chain of components headed north has been disrupted, and GM pickup truck production has been reduced by 50 percent.
The GM Oshawa plant, located in Ontario, is responsible for production of the Chevrolet Impala and Cadillac XTS, as well as final assembly for the Chevrolet Silverado and GMC Sierra. GM has confirmed that the full-size pickups are the models currently affected by the GM strike. GM also noted that its other Canadian facilities, including the CAMI plant in Ingersoll, Ontario, and St. Catherines powertrain plant, also in Ontario, have remained unaffected thus far.
GM reiterated that the 1,200 worked temporarily laid off will receive layoff benefits as outlined in its agreement with Unifor, the Canadian trade union.
For now, progress in negotiations between the UAW and GM is slow, with the union pushing for retention of healthcare benefits, wage increases, greater GM profit sharing, new allocation for recently idled production facilities, and a clear path to a permanent position for temporary workers.
Meanwhile, the GM strike continues. So far, GM has shifted health insurance costs to the UAW while the strike goes on, placing another drain on the union’s strike funds, and employees at GM supplier companies have been laid off.
In the automaker’s camp, some analysts predict the GM strike could cost the company upwards of $100 million per day.
We’ll keep our ears to the ground to see what else develops. In the meantime, subscribe to GM Authority for more UAW news and 24/7 GM news coverage.
Source: CNBC
Comment
China and Mexico thanks the UAW for their lack of reason and culture of corruption. If not for corrupt labor pimps in the US, manufacturers would not be so dependent on foreign labor. There also probably wouldn’t have been a surge in steel and auto manufacturing employment in the southern US (such as Alabama, Mississippi, and South Carolina).
In any case, I hope the strike is resolved soon….with the end result being that the excellent Cadillac CT6 stays in production in the US, Lordstown reopens to build electric/battery hardware, and GM employees receive wages in line with employees of equal productivity at Honda and Toyota.
I also hope GM, Ford, and Chrysler invest heavily into additional automation, resulting in fewer UAW-controlled jobs in the US. UAW members should use their bonuses to send their kids to good universities that prepare them for a future economy that will reward specialized technical skills.
The UAW is only part of the cancer that is infecting GM. The company needs to reward more creativity on the design/engineering side. They need to be less conservative in defending their own market share – even in market segments they don’t lead. They need to be less enthusiastic about canceling entire product lines and more focused on delivering a value to the customer. Kick the bean counters that pushed the cancellation of compact sedans or placed ridiculous cost constraints on product development.
The monetary benefits of scalable architecture won’t be realized if those vehicles are designed on a shoestring budget. This is one of the largest car companies in the world. It takes a serious investment into product to set yourself apart from the little guys from a product quality and cost perspective. Design it right the first time – especially when a huge portion of the business rides on it.