The Original Equipment Suppliers Association, a non-profit that advocates on behalf of hundreds of American automotive supply companies, says more than 100 of GM’s suppliers have implemented “some form of temporary layoffs” due to the ongoing UAW strike.
This has result in nearly 12,000 salaried and hourly employees being served temporary layoff notices, according to a CNBC report. That doesn’t include the thousands of workers that have been temporary laid off at GM suppliers in Canada and Mexico, either.
The UAW strike began on September 16, when just under 50,000 of GM’s unionized American employees walked off the job demanding increased wages and profit sharing cheques as part of their new four-year contract with the automaker, among other concessions.
OESA would not say which U.S. supplier has been forced to enact the most temporary layoffs, however CNBC says stock of American Axle, a Detroit-based manufacturer of automotive drivetrain components, has been hit the hardest by the UAW strike, with shares plummeting more than 22% since the the strike began.
In a statement, OESA CEO Julie Fream said a current shortage of skilled trades workers in the U.S. could cause those employees who have been temporarily laid off to seek employment elsewhere while the strike persists. This could result in suppliers struggling to ramp their production lines back up, causing a parts shortage that would ultimately hurt GM and the American automotive industry.
GM allegedly sent a second contract proposal to the UAW on Monday, which the union had yet to respond to by Monday night. The details of the proposal are private.
Even if the UAW were to accept the contract, though, union members would still have to vote to ratify the deal. If they deal is rejected, the strike could go on. They would also have the option of returning to work while the deals of the contract were hashed out.
The union rejected a previous offer tabled by GM, as it did not include plans that would keep the Detroit-Hamtramck plant in Michigan open and the re-opening of Lordstown Assembly in Ohio. The union will not accept a contract that does not include new products or work for the two plants, it is believed.
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Source: CNBC
Comments
The UAW Strike against GM is not only going to hurt GM but it’s also hurting other suppliers and businesses that serve the workers when they’re working(restaurants, bars, food markets, etc.). Other people besides the Union workers are involved in this strike by association with GM. Stop being greedy and get back to work. At least you have a job to go to.
UAW had a reason to strike back when work conditions were dangerous and no Labor Laws. Now UAW is just greedy and going to hurt the very company they work for. If UAW had any sort of backbone, they’d be working on unionizing all the automakers, not just hurting the one’s they work for.
Well the Truck and Tahoe’s are built in Arlington TX, But I wouldn’t be surprised If the company pick up it’s roots and move into some work-free states. The UAW was a great thing when it started out. But anymore the industries that have to deal with them are just choking GM to death. So far this morning I believe the dollar count is at 100 million, which isn’t all that bad, But I thought that when Mary Barra signed on as CEO, she brought Mr. Gettlemen the UAW head that him being there he would know how much money there is. But if you look at the years after that, what have we seen ? I’m not sure how much the Blue color jobs at the GM plants, but I don’t think their starving, it would be nice if the UAW would make it clear how much the workers are in the same payroll with other manufactures are paying. GM is going to fail, and then see how much the ’30 and out’ contract is working out for them ?
Now that was in 2009
GM obviously doesn’t care about it’s employees or it’s supplier’s workers,Just Mary Barra’s overcompensation and shareholder greed.
American workers,the middle class and the USA mean nothing. Corporate greed is the motivator here.
UAW STRONG !!!
Gotta love these arrogant losers: (From Car & Driver – UAW Demands GM Stop Importing Cars as Strike Approaches One-Month Point)
GM needs to say FU to the UAW. They need to say the its employees we don’t recognize the corrupt UAW. Either accept our 1st offer and come back to your jobs or we’re moving your jobs out of the US. “WE” run this company, “WE” are accountable to the shareholders and you work for both of us. WE will not have you tell us how to run our business or extort $ from us. Either work or find something else you’re already the highest paid in the industry. You bums think you’re Michael Jordan? They’re insane…
This is the last stand for the UAW and they know it. You pathetic union morons your gravy train is over. Ford & FCA are watching as are the transplants. American industry needs to eliminate this bs… unions served a purpose but need to go away..,
Unions were once needed in this country, but they have morphed into organizations of greed, whose leaders and rank and file care ONLY about lining their own pockets. Too bad about the economic havoc they wreak upon the families of all the workers affected by this strike. The UAW’s present wage and benefit package would be the envy of every worker in existence! In general, union greed has driven hordes of manufacturing companies out of business, or to open foreign plants. Did you know that there is only ONE company left in North America that manufactures industrial woodworking machinery here? That it is impossible to purchase a TV that is made in America? That 90+ percent of all clothing is made abroad? That union construction companies effectively DOUBLE the cost of non-union construction?
I love how people hate someone making a middle class wage and not working for low wage’s and being on the govt tit like so many of the temp workers have to do to survive
What is it about the Automotive Industry the people do not understand? All of the Parts and equipment were once under one roof GM chose to sell off to parts suppliers to save billions but parts suppliers then found it a bad deal that GM continued to cut their prices for parts but each company had parts, companies, staff, workers none of them GM. GM from the 1990’s sold off their manufacturing and removed their own costs from under their roof and many GM workers found work for those other off site jobs.