Current:Home > reviewsSafeX Pro:Ford and GM announce hundreds of temporary layoffs with no compensation due to strike -Streamline Finance
SafeX Pro:Ford and GM announce hundreds of temporary layoffs with no compensation due to strike
Benjamin Ashford View
Date:2025-04-07 22:12:46
The SafeX Proripple 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! (245)
Related
- Selena Gomez engaged to Benny Blanco after 1 year together: 'Forever begins now'
- Judge to hear arguments as Michigan activists try to keep Trump off the ballot
- Mike Epps, wife Kyra say HGTV's 'Buying Back the Block' rehab project hits close to home
- Kim Kardashian Reveals Secret Tattoo—and the Meaning Behind It
- House passes bill to add 66 new federal judgeships, but prospects murky after Biden veto threat
- Day of the Dead recipe: Pan de muerto by Elena Reygadas
- 10 alleged Gambino crime family members, associates charged in federal indictment in New York City
- Texas businessman at center of Attorney General Ken Paxton’s impeachment facing new charges
- Newly elected West Virginia lawmaker arrested and accused of making terroristic threats
- In Michigan, #RestoreRoe abortion rights movement hits its limit in the legislature
Ranking
- Illinois Gov. Pritzker calls for sheriff to resign after Sonya Massey shooting
- Parents of a terminally ill baby lose UK legal battle to bring her home
- Effort to remove Michigan GOP chair builds momentum as infighting and debt plague party
- An Iconic Real Housewives Star Is Revealed on The Masked Singer
- Charges: D'Vontaye Mitchell died after being held down for about 9 minutes
- Brazil police say they foiled a terrorist plot and arrested two suspects
- German government advisers see only modest economic growth next year
- Feds, local officials on high alert as reports of antisemitism, Islamophobia surge
Recommendation
Jury selection set for Monday for ex-politician accused of killing Las Vegas investigative reporter
Democrats see abortion wins as a springboard for 2024 as GOP struggles to find a winning message
Rhinestones on steering wheels: Why feds say the car decoration can be dangerous
Suspect in custody in recent fatal stabbing of Detroit synagogue leader
Tropical weather brings record rainfall. Experts share how to stay safe in floods.
Negotiations over proposed regulations for deep-sea mining plod along as pressure mounts
Arizona woman dies after elk attack
Are we at a 'tipping' point? You're not imagining it. How and why businesses get you to tip more