Current:Home > MarketsFord and GM announce hundreds of temporary layoffs with no compensation due to strike -PureWealth Academy
Ford and GM announce hundreds of temporary layoffs with no compensation due to strike
View
Date:2025-04-23 10:23:36
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! (35)
Related
- Residents worried after ceiling cracks appear following reroofing works at Jalan Tenaga HDB blocks
- Maldives presidential runoff is set for Sept. 30 with pro-China opposition in a surprise lead
- Lauren Groff has a go bag and says so should you
- Police announce another confirmed sighting of escaped murderer on the run in Pennsylvania
- Tom Holland's New Venture Revealed
- Guns n’ Roses forced to delay St. Louis concert after illness 30 years after 'Riverport Riot'
- For Deion Sanders and Shedeur Sanders, Colorado's defeat of Nebraska was 'personal'
- Guns n’ Roses forced to delay St. Louis concert after illness 30 years after 'Riverport Riot'
- Average rate on 30
- Here’s Why Everyone Loves Candier Candles — And Why You Will, Too
Ranking
- Intel's stock did something it hasn't done since 2022
- Age and elected office: Concerns about performance outweigh benefits of experience
- Misery Index Week 2: Alabama has real problems, as beatdown by Texas revealed
- Husband of woman murdered with an ax convicted 40 years after her death
- Skins Game to make return to Thanksgiving week with a modern look
- Tennis phenom Coco Gauff wins U.S. Open at age 19
- Janet Jackson sits in star-studded front row, Sia surprises at celebratory Christian Siriano NYFW show
- ‘The Nun II’ conjures $32.6 million to top box office
Recommendation
South Korea's acting president moves to reassure allies, calm markets after Yoon impeachment
Spanish soccer president Luis Rubiales resigns after nonconsensual kiss at Women’s World Cup final
Coco Gauff's maturity, slow-and-steady climb pays off with first Grand Slam title
Israeli delegation attends UN heritage conference in Saudi Arabia in first public visit by officials
Nearly 400 USAID contract employees laid off in wake of Trump's 'stop work' order
'The Nun 2' spoilers! What that post-credits scene teases for 'The Conjuring' future
For Deion Sanders and Shedeur Sanders, Colorado's defeat of Nebraska was 'personal'
Nightengale's Notebook: Christian Walker emerging from shadows to lead Diamondbacks